Iowa United Methodist Foundation

ESTABLISHING A PERMANENT ENDOWMENT FUND WITHIN THE LOCAL CHURCH

Establishing a Permanent Endowment Fund:

The Administrative Board/Council presents a resolution to a Charge Conference that a Permanent Endowment Fund Committee should be established.
The Permanent Endowment Fund Committee creates guidelines for the Permanent Endowment Fund for presentation to the next called or regular Charge Conference.
The Charge Conference establishes the Permanent Endowment Fund Committee.

Categories of gifts

Capital: The physical plant is always a great concern. The endowment for capital projects might include many categories or different designations:
1. Capital Renovation (major work on the current structure);
2. Capital Improvements (repair and enhancements that will serve for several years, but not on the scale of a renovation);
3. Capital Campaigns (seed money for a foreseeable project);
4. New Building (much like "c" but farther in the future).
General Endowment Fund: This is the unrestricted fund where the earned interest is available for use. The General Endowment Fund may make annual distributions of earned income to be used within the other categories it has established for gifts.
Missions: As with the capital, these gifts may be sub-categorized into specific areas which might include geographical distinctions (community, state/nation, or world) or might include type distinctions (care of missionaries, education in other cultures, project/economic missions, etc...).
Special Ministries: The traditional special or "extra-mile" ministries of a church might be considered as targeted categories, or it is possible to set up general categories as a way of addressing future needs (music, youth, visitation, Christian Education, etc.).
Education Scholarships: This might be best addressed under "special ministries;" however, history suggests that many resources will be directed toward scholarships for college and seminary students and/or for continuing education opportunities for members of the congregation.
Endowing Annual Gifts: What about the possibility of having an interested member endow their annual gift for current operation Expenses?

For more information or assistance in establishing a Permanent Endowment Fund, contact the Iowa United Methodist Foundation.

Endowments

ESTABLISHING A PERMANENT ENDOWMENT FUND WITHIN THE LOCAL CHURCH