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Accepting the Concept
It is important that the Pastor and the Session share a mutual conviction about the value of an endowment program for your church. Such a plan is destined to fail without a united and committed leadership. Any fears that such a program will detract from current giving need to be explored in full and answered in a satisfactory manner. Once it is agreed that an endowment program is worthwhile, then you are ready to explore all the possibilities.
Exploring the Possibilities
Churches with small membership may want to explore the possibilities primarily through the church session or have one or two persons study and make recommendations. Other, larger churches, may want to appoint a committee to research and discuss the various options available through an endowment program. In either case, it should prove helpful to:
1. Consult with other congregations that have implemented endowment programs.
2. Request free information and examples of endowment plans from the Board's Office in Memphis, Tennessee.
It should be the responsibility, in the case of designated individuals or the committee, to determine the feasibility of an endowment program for the congregation and to suggest ideas concerning how such a program will be used by the church. These individuals or the committee can then report findings and recommendations to the Session.
Developing A Resolution
The Session, after reviewing the findings and recommendations will authorize the development of a resolution (Sample Endowment Fund Resolution) to outline the program and its guidelines. The drafting of the resolution may be assigned to the originally designated individuals and/or committee or the Session may delegate this responsibility to a new committee or group. (Churches with small memberships, click here for a simplied version.)
The resolution, based on the findings and recommendations of the original committee, should be individualized to address your church's goals for an endowment program. Board of Stewardship staff will be pleased to provide assistance in drafting a resolution.
Adopting The Resolution
Adopting the resolution is the means by which the policies which will govern your endowment program are established.
The Session will:
1. Obtain any necessary legal counsel to confirm that the resolution is in keeping with state and federal laws.
2. Incorporate policies on matters such as:
a. Kinds of gifts to be received for the program, i.e. whether to accept real estate, gift annuities, life insurance, etc.
b. Conditions under which gifts will be received, e.g. whether certain kinds of designations for the use of funds can be embraced within the ministry of the church.
c. Commitment to scrupulously honor designations of all gifts accepted.
d. Handling and use to be made of any undesignated gifts and bequests.
e. Proportionate use of income for local causes and for mission beyond the congregation's community.
f. Investment procedures to avoid conflict of interest (including consideration of the use of the investment management services provided by the Endowment Program offered through the Board of Stewardship, Foundation, and Benefits).
g. How the use of endowment income will expand the mission of the church without lessening responsible stewardship and current support by its members.
h. How to inspire members of the congregation to expand their horizons to include the whole mission of the Church in the world.
3. Provide for the appointment and accountability of an Endowment Committee (in larger congregations).
4. Provide for an annual audit (if funds are managed locally).
5. Annually report to the congregation on the corpus, gifts, income, and use of income.
6. Provide accounting of the use of individual Memorial Funds and their proper acknowledgment to family members of those being remembered.
7. Provide for the disposition of the fund in the event of any future change in the organizational status of the congregation, e.g. whether to designate that in the event the church should cease to be an organized congregation of the Cumberland Presbyterian Church the fund and its income should be used for support of a General Assembly level program such as the Children's Home or overseas missions or for support of youth camping programs or new church development in your presbytery.
Simplified Approach for Churches with Small Memberships
Churches with small memberships may prefer to meet many of the concerns outlined above by embodying them in a trust agreement with the Board of Stewardship and use a simplified form or resolution. Board staff will be pleased to work with your church on such a trust agreement. (Sample Trust Agreement)
Even in such cases, it is important to discuss and come to conclusions regarding items 1 through 7 listed above. To receive a customized draft of a possible trust agreement, email Richard Magrill, Executive Secretary of the Board of Stewardship, Foundation and Benefits, with your request.
For more information, contact Richard Magrill
Page updated on May 2, 2007 Pages maintained by Elinor Swindle Brown