How did the Endowment Fund get started?

As the year 1996 approached, many plans were afoot as our church was preparing to celebrate its 175th anniversary! Programs honoring the seniors among the congregation who had helped build the current church building were planned. A special banquet was held. Souvenirs were available in abundance. By unanimous consent, a resolution to establish a permanent Endowment Fund at the start of the anniversary year was approved at the December 1995 Church Conference.

The first major gift of $175,000 was granted by the Board of Trustees. The Endowment Fund Trustees thereafter challenged the congregation to match that amount during 1996, the 175th anniversary year of our church. This goal was not only met but exceeded in that first year. Within four years, the Endowment Fund balance reached the milestone of $1,000,000.

What is the Endowment Fund?

It is a reserve of capital which is invested for growth and income to provide financial stability and a legacy for future generations.

How does the Fund grow?

The Fund grows through careful investing and appreciation generated from investments as well as from gifts, memorials, and bequests.

Is the principal available for use?

Only the income generated by the principal is made available under normal circumstances.

What about inflation?

A percentage of the income generated each year which is equal to the cost of living is added back to the principal to maintain the Fund's value. Only income in excess of that cost of living allocation is available for expenditure.

Who is responsible for investing the Funds?

All funds of the church, including the Endowment Fund, are invested by the Board of Trustees Investment Committee. The Endowment Fund has a seat on the Investment Committee.

Who decides how much money is to be spent?

The Investment Committee provides the Endowment Fund Trustees with an annual report of income earned. The Endowment Fund Trustees calculate the amount available for distribution each year by following a formula set forth in the by-laws. The formula allows for a percentage not to exceed 3% of the preceding five year average market value of the fund.

How will the funds be used?

Amounts that are available will be used to pay for programs or special events unfunded in any other way.

How will programs and projects be selected for funding?

Requests for funding reach the Endowment Fund Trustees through various sources. Only programs which meet the approval of the Board of Trustees and for which no funding is available in the budget are considered by the Endowment Fund Trustees. If the Endowment Fund Trustees approve a disbursement for a program or project, they then submit their recommendation to the Board of Trustees for final approval before funds are disbursed.

What about capital improvements?

It is anticipated that the Endowment Fund will grow in time through contributions, fund raising efforts, memorials, and bequests to a size that will be able to provide support for capital improvements, expansion, or unexpected major needs. Until the Endowment Fund reaches a sufficient level to handle that, the Major Capital Improvement (Home Fires) program will continue.

Why should I contribute to the Endowment Fund?

As caring Christians who have received a wonderful 175+ years legacy, it is incumbent on us to build on that legacy for future generations.

How much am I expected to contribute?

No more that you can afford! Gifts to the Endowment Fund should be above and beyond your pledge to the Operating Budget and Home Fires.

Is it all right to add $1 to my Sunday offering envelope and mark it for the Endowment Fund?

Absolutely! Based on our average Sunday attendance, if everyone added $1 each week for the Endowment Fund, the Fund would grow by $60-100,000 each year. Every dollar counts!

Are my gifts tax deductible?

You bet! As with any other gifts to the church, your contributions to the Endowment Fund are fully deductible.

Are there any special ways of making gifts or including the Endowment Fund in my estate planning?

Yes, there are a variety of ways of doing so. For information concerning such estate planning, contact the church office with your name and address so information can be provided to you. You can contact the church office by calling 248-646-1200 or via e-mail at office@fumcbirmingham.org.