FUMC’s new endowment fund is a program established to provide members and friends of the church the opportunity to make charitable gifts that will become a permanent endowment for financial support and a living memorial.
Why was the endowment fund established?
The endowment fund is intended to generate a permanent income stream that will – over the long-term – directly benefit the church’s programs and ministries that are not typically funded through the annual operating budget of the church.
Who can participate in the fund or make a gift?
Any member of the church or friend of FUMC can make a gift to the endowment fund at any time.
Can gifts be designated for specific purposes?
While any gift is appreciated, gifts that you wish to designate for a specific purpose should be made to the Trustees or to the Memorial Fund. The endowment fund is meant to be a general purpose fund rather than a specific purpose. At present any gift to the Endowment Fund will be an “Undesignated” gift.
Can I be sure the fund meets all legal requirements?
The Endowment Fund will conform to all applicable Wisconsin laws and regulations and all applicable Federal laws and regulations, including the provisions of the Internal Revenue Code, and The Book of Discipline of the United Methodist Church. Administrative service of the Endowment Fund is provided by the Wisconsin United Methodist Foundation.
How will endowment funds be invested?
All fund investments will be managed by the Wisconsin United Methodist Foundation, Inc. which will serve as the primary custodian of FUMC’s endowment fund. The fund’s investment objectives are:
1. Conservation of the fund’s principal;
2. Regular income at a reasonable rate of return on investment;
3. Investment of assets in institutions, companies, corporations, or funds approved by the FUMC Endowment Fund Committee.
Because the fund was established to generate income from investments, generally only dividends and interest earned through the investment of the fund’s principal will be used by the church. The FUMC, with FUMC Church Council approval, may withdraw up to 5% of the Endowment Fund balance as of the December 31 balance.
Who are the members of the FUMC Endowment Fund Committee?
The FUMC Endowment Fund Committee members are:
1. Chair of Church Council;
2. FUMC’s Lay Leader;
3. FUMC’s pastoral staff;
4. A member of the Church Trustees;
5. A member of the Church’s Finance Committee;
6. A member of the Church’s Memorials Committee;
7. Up to three members at large from the FUMC congregation.
Do I have to make a large financial gift to participate?
No! Gifts in the form of cash, checks and publicly traded securities can be accepted in any amount. Gifts of real estate must meet certain requirements and have a fair market value in excess of $5,000. Gifts of tangible personal property must meet certain requirements and have a cash value in excess of $1,000. A gift acceptance policy exists to assure that all gifts to the church, or to the use of the church, are structured to provide maximum benefit to both the church and the donor.
What about planned giving?
Through a gift to the FUMC Endowment Fund, you can now leave a permanent legacy and ensure that FUMC, its programs and ministries are supported in perpetuity. Planned gifts through wills – known as bequests – provide a tremendous financial blessing to the church. Other ways you can make a gift that will endure to the long-term benefit of the church are:
- Revocable living trusts and charitable trusts;
- Life estate gifts;
- Life insurance policies;
- Gift annuities.
To whom may I speak with tax and legal questions of giving an endowment gift?
You should consult with your legal and tax advisor for specific questions. The FUMC Endowment Committee members can not provide legal or tax advice. For more general legal and tax questions, you may contact the Wisconsin United Methodist Foundation at (888) 903-9863 or via e-mail at wumf@wumf.org.
