Endowment Program
Frequently Asked Questions
What types of gifts are appropriate?
Outright gifts may be made in the form of cash, publicly traded securities,
closely held securities, real property, tangible personal property, other
property. Planned or deferred gifts may be in the form of bequests (wills),
revocable living trusts and charitable trusts, gifts of legal remainder interests,
life insurance policies, gift annuities. Please contact your financial adviser or
a member of the Grace Permanent Endowment Fund Committee for further
information. The Committee has the authority to accept or reject any and all
gifts to the Fund.
Who are the Committee members?
At-Large members include Walt Secrest (Chair), Linda Vick,
Carla Freitag, Cheryl Venzara, Connie Butch, and Mike Dobrin.
Representative members include:
Terry Lolmaugh (Finance)
Max Nagel (Stewardship)
Jan McCoy (Trustees)
Bob Pearcy (Pastor)
Pat Sanders (Financial Secretary).
How and when may gifts to the Endowment Fund be made?
Outright gifts (as described above) may be made, by check or by transferring
specific assets such as stock or real estate, at any time by contacting the
Church office or any member of the Committee. Gifts in memory of someone
are appropriate at any time and represent a truly spiritual means of honoring
a deceased relative or friend. Planned or deferred gifts (as described above)
generally require legal assistance and are a wonderful way for individuals to
continue their financial support of the Church after their death.
How will funds be used?
The purpose of an endowment fund is to retain the principal and use only the
income from investments to support ministries of the Church. Once the
accumulated amount deposited in the General Endowment Fund and any of
the currently designated subfunds (Capital Improvements and Unbudgeted
Property Maintenance, Scholarships, Mission Projects, Church Ministries
and Programs) reach a level that generates sufficient income to make a
meaningful impact, the Committee will make distributions, normally on
an annual basis, in support of worthy efforts that are consistent with
the purpose of the Fund and the designated category. In principle, such
efforts will represent activities that are not included in the
annual church budget.
May we designate a gift for a specific purpose and is there a minimum contribution required?
No minimum amount is required for a gift to an existing subfund. For a new
general fund to be designated (Library Purchases, for example), a minimum
gift of $10,000 is required. For a new named subfund to be designated
(The John Doe Memorial Scholarship Fund, for example), a minimum gift of
$25,000 is required. A gift to the Fund that is not designated to a
specific subfund will be placed in the General Endowment Fund.
What is the difference between annual giving and gift to the Endowment Fund?
The two forms of giving are completely separate. Your tithe or other annual
giving supports the Church's current operating budget and is essential for
the Church's operation. The Fund looks to the future and is intended for
Church purposes that are not funded through the annual operating budget. A
gift to the Fund is "over and above" your support of the budget.
What are potential tax advantages from making contributions to the Fund?
We recommend that you consult your financial adviser on this matter.
However, here are a few such advantages that may be available to you.
- Contributions of property or securities that have significantly
appreciated in value may be claimed as deductions at current market
value rather than the original purchase price without capital gains.
If such property or securities are first sold and the proceeds of
that sale are then contributed to the Fund, any related capital gains
taxes will probably have to be paid.
- Charitable gifts through your will or a revocable living trust are
deducted from estate taxes and can be delayed until all family members
have first been provided for.
- A charitable remainder annuity trust is a way to make a gift that allows
you to retain income from your property for life or for another period of
time you specify. Your funds are held separately and invested for
payment of a fixed and regular income to you and/or someone else
you name. A tax deduction is allowed at the time you create your
trust.
- You may make a gift of your home while retaining the use of the
property for as long as you live. You may take a tax deduction and,
because you have made a gift of the property by deed, it does not pass
through your probate estate at death.
Page Revised 09/01/06
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