endowment workshop

ENDOWMENT WORKSHOP

A presentation brought to you by the United Methodist Foundation of the Northwest

My Grandson, Rayce

What can I say?

I’m cute.

Definition

Endowment [en-dou-muhnt]noun

An endowment is an agreement/covenant between two parties; typically an individual and an organization (more often than not a non-profit organization like the church).

… the original gift amount will never be spent,

but instead be invested and that the earnings will be

used to support …

… the giver or donor has to provide specific language or directions along with his/her gift as opposed to an outright

gift …

Prevent confusion with specific directions.

Huh?

United Methodist

Foundation=

Representative

Foundation

Why do people give to endowments?

… has been greatly impacted or even transformed by

the organization in a profound way …

These may include tax advantages (both income

tax and estate taxes), life income agreements,

professional management, and family development.

Wait, did you say tax advantages?

When do people give to endowments?

It goes by so fast!

… during their life and upon their death …

They may give to an endowment fund to celebrate or memorialize someone’s life …

Endowment gifts are often a part of the donor’s estate plan.

How do people give to endowments?

Time to consider my options.

During their lifetimes...

• Making a transfer of an asset to the fund• Through one of the more formal planned giving

vehicles (will discuss in a moment)

Upon their death…

• Through their estates using bequest paragraphs or codicils

• Through a trust or beneficiary-type arrangement

What do people give to an endowment?

Not my freedom!

… just about any amount or value …

• Cash / Check• Securities (particularly appreciated)• Real Estate (particularly appreciated)• Retirement Plans• Insurance Policies• Collectables

Ah, and I still have time to play.

How Does the Church Receive, Manage and Distribute the Income

of Endowment Gifts?

Believe in the cause…believe in the cause…

… the board of trustees shall receive and administer all

bequests made to the local church; shall receive and

administer all trusts; and shall invest all trust funds of the local

church …

… the charge conference may delegate the power, duty, and

authority to receive , administer, and invest bequests, trusts, and

funds to the endowment committee…

Are there any other Benefits to Giving to an Endowment?

I could use a helping hand right about

now…

THERE ARE MANY.

… express your testimony regarding the importance of the entity you are

making a gift to…

… the most enduring and loudest testimonies that our lives can offer…

Do I Have to Use an Endowment?

Do I have to?

The gift of thoughtfulness.

Questions?

“A society grows great when old men plant trees

whose shade they know they shall never sit.”

Greek Proverb

Photo Credits

• Slides 1 & 32: http://www.flickr.com/photos/simplelifekar/7314132722• Slides 2, 3, 7, 9: Tom Wilson & Family• Slide 11: http://www.flickr.com/photos/camknows/7586415936• Slide 12: http://www.flickr.com/photos/gudaev/7809267676

• Slide 13: http://www.flickr.com/photos/29445095@N05/5894698421/ • Slides 15, 16, 18, 20, 22, 23, 26, 28, 29, 30, 33: Tom Wilson & Family

Yep, you in the back. We see you.

Thank you for joining us!

Tom WilsonExecutive Director of the

United Methodist Foundation of the Northwest

800-488-4179tom@nwi.net