The overall purpose of the church endowment is to be a permanent financial resource for the future of the parish. The endowment committee provides responsible stewardship of the funds and advises the vestry regarding receipts and disbursements.
Church funding has 4 major parts:
- Yearly operating budget - funded by pledges and other collections;
- Building Fund - budgeted for specific construction or repurposing facilities;
- Memorial fund – non-budgeted gifts, usually to remember specific persons or events and used for specific items like books and vestments.
- Endowment fund – non-budgeted gifts to assure the future vibrancy of the church.
The endowment fund is a permanent reservoir of funds, invested wisely and generating income that can be used to “jump start” future programs or facility upgrades.
The fund balance consists of a “corpus” – the total amount of gifts to the fund. The corpus amount is the permanent asset of the church. The remainder of the fund balance is accumulated investment gain, part of which is available for yearly distribution according to a formula based on the value of the corpus.
Gifts to the endowment fund are unrestricted – intended to ensure the future health of the church – whereas specified gifts should go to one of the other categories. Endowment fund gifts can be cash or marketable securities, bequests in a will, or proceeds from life insurance. As you rework your estate plan, please remember the church.
The stewardship mantra for the operating budget is “Up Your Pledge”.
The permanent mantra for the endowment fund is “Fund Your Future”.
Committee Chair: Tom Vail