Part 7 of 9
- Part 1 -- The Place of Endowment Funds in the Local Church
- Part 2 -- How Pastors Can Encourage Planned/Deferred Gifts
- Part 3 -- Encouraging Gifts to a Local Church Endowment Fund
- Part 4 -- Guide to Memorial and Honor Giving in the Local Church
- Part 5 -- Descriptions of the Major Planned Gift Vehicles
- Part 6 -- Planned Giving Resources for Your Use in the Local Church
- Part 7 -- Getting Started on a Local Church Endowment Fund
- Part 8 -- Holding an Estate and Gift Workshop in Your Church
- Part 9 -- A Model for an Estate Planning Seminar in Your Church
This material is excerpted from the "Planned Giving Handbook for Local Churches" published by the National Association of United Methodist Foundations.
Recognizing the place of "planned giving" in the stewardship program of the local church, the 1988 General Conference enacted legislation enabling a Permanent Endowment Fund Committee in every United Methodist Church. This legislation was up-dated in 1992 and again in 1996. While this Committee is not a part of the required organizational structure, it can be one of the most important committees in the church. The Book of Discipline - 1996 sets forth this permissive legislation in Paragraph 2533.
- Paragraph 2533. "PERMANENT ENDOWMENT FUND COMMITTEE. A Charge Conference may establish a local church Permanent Endowment Fund Committee." (The Book of Discipline - 1992)
The Charge Conference, which elects other officers and leaders of the local church, can elect and empower a Permanent Endowment Fund Committee, and this Committee can provide vital leadership to this important aspect of the local church's stewardship program.
Prior to 1996 The Book of Discipline provided for a "Wills and Estate Planning Task Force," but very few churches organized such a Task Force. In The Book of Discipline - 1996 no provision is made for such a Task Force, but many of the responsibilities which were given to the Wills and Estate Planning Task Force (if organized) can now be given to the Permanent Endowment Fund Committee.
While Paragraph 2534 of The Book of Discipline - 1996 permits the organization of local church foundations, in most cases the organization of a Permanent Endowment Fund Committee and the establishment of an Planned Giving and Endowment Program in the local church, which works cooperatively with the Conference/Area United Methodist foundation, is preferred as a simpler and more effective approach. Local churches are urged to consult with their Conference/Area foundation before considering a local church foundation.
Step One: The Ad Hoc Committee
The familiar quotation -- "A journey of a thousand miles begins with the first step" -- certainly applies to an effective program of planned giving and endowment funding in the local church. A good "first step" begins with an Ad Hoc Committee made up of people who have a dream for their church, who want to see their church's stewardship vision grow, and who want to see their church in the role of inspiring persons to be good stewards.
The Ad Hoc Committee should include the pastor and other staff related to the stewardship program along with several lay persons whose interest in planned giving and endowment funding has already surfaced or who would be open to considering some new and different stewardship concepts and procedures. In some churches the Work Area or Committee on Stewardship might serve as the Ad Hoc Committee; or, at the prompting of the Work Area or Committee Chairperson of Stewardship, a separate committee might be convened.
The agenda for the first meeting might well include a visit from the Executive Director of your Conference/Area United Methodist foundation. This resource person is skilled in matters related to gift planning, has assisted other churches in the establishment of endowment programs, and can provide valuable information, guidance, and resources for your church.
While the Ad Hoc Committee will spend much of its time brainstorming new ideas, its primary objective should be to prepare for presentation to the Administrative Board/Council a recommendation that a Permanent Endowment Fund Committee be elected and empowered. The Ad Hoc Committee will want to make a strong presentation to the Board/Council which should include:
- the personal benefits to members
- the financial benefits to the church
- an opportunity for questions
- opportunities for personal witness and support
- a positive response to any negative reactions
- an official motion to endorse the creation of a Permanent Endowment Fund Committee and authorization to the Ad Hoc Committee to draw up a resolution creating this Committee for presentation to the Charge Conference (Note: The Committee must be created and members elected by the Charge Conference. The Administrative Board/Council is simply asked for its support and endorsement.)
Step Two: Creating An All-Church Dialogue on Endowment
Do the All-Church Dialogue and Report to Charge/Church Conference
- Have every committee, every group in the church discuss the following:
- What is Endowment?
- How does Endowment work?
- Why do we need an Endowment?
- Why should we have an Endowment?
- What would we ever do with the money?
- What is Endowment?
- Have every committee or group report their conversations to the Charge or Church Conference
Why do you do this? Because the all-church dialogue does three critical things that are necessary to starrt the Endowment Fund program of the church off in the right direction:
- It gives everybody a chance to ask all their questions and thoroughtly examine every aspect of an endowment fund and its purpose for the local church.
- It allows an opportunity for everybody to feel like their concerns and issues are heard and responded to during the time when the Endowment Document or Charter is being created.
- It creates a large measure of "buy-in" or ownership of both the resulting Endowment Fund and the process whereby it was created. People feel good about the process and, therefore, the end result. So it is natural that they would give it a higher priority when making out their will or creating their estate plan.
Step Three: Creating the Permanent Endowment Fund Committee
NOTE: There are two steps that can be taken to do this.
- By including the creation of the Permanent Endowment Fund Committee inside the Endowment Fund Document itself, and
- By enacting that committee through an action of Charge Conference setting in motion the committee and their work. Go to Endowment Resolution for an example of how this can be done.
The Ad Hoc Committee should prepare a resolution to be presented to a regular or called Charge Conference for the purpose of creating the Permanent Endowment Fund Committee as described in Paragraph 2533 of The Book of Discipline - 1996. The procedure to be followed for a Charge Conference is given in Paragraph 248 (The Book of Discipline - 1996) and should be carefully followed.
The resolution may be presented in the Charge Conference session by the chairperson or a member of the Ad Hoc Committee, or it may be presented as a recommendation from the Administrative Board/Council. (If the resolution is presented by the Ad Hoc Committee, it is preferable to have the prior endorsement of the Administrative Board/Council.) Once the Charge Conference votes to create a Permanent Endowment Fund Committee and elects members to this Committee, the Ad Hoc Committee is dissolved.
The following draft will provide valuable assistance to the Ad Hoc Committee as the resolution is prepared.
This is a sample resolution provided for consideration. It may be reproduced and/or modified by the local church to meet its specific needs, but attention should be given to assurance that the organization of the Permanent Endowment Fund Committee and the authority given to the Committee be in compliance with The Book of Discipline of The United Methodist Church.
D R A F T
CHARGE CONFERENCE RESOLUTION
BE IT RESOLVED THAT the Charge Conference of _______________ United Methodist Church, __________________(city), __________________(state) in session on this _______ day of ___________________, 20____:
- Create a PERMANENT ENDOWMENT FUND COMMITTEE in keeping with Paragraph 2533 of The Book of Discipline of The United Methodist Church - 1996. (Or refer to the correct paragraph of the current discipline at the time you are drafting this resolution)
- Elect the following persons to membership on the Permanent Endowment Fund Committee:
- The Pastor
- The Chairperson of the Committee on Finance
- The Local Church Treasurer
- A Representative from the Board of Trustees named by the Board of Trustees
- Three to Five Persons Nominated by the Committee on Nominations and Personnel
- The Pastor
- Said members of the Committee shall serve until their successors are elected by the Charge Conference.
- The Chairperson of the Committee shall be nominated by the Committee on Nominations and Personnel from the Committee membership established in II above and shall be elected by the Charge Conference.
- The Committee shall have the powers and duties authorized by The Book of Discipline of The United Methodist Church and granted by this session and future sessions of the Charge Conference.
- Provide the services described in Paragraph 2532.5 (The Book of Discipline - 1996) as designated by the donor or at the direction of the Charge Conference upon notice to the board of trustees.
- Emphasize the need for adults of all ages to have a will and an estate plan and provide information on the preparation of these to the members of the congregation.
- Stress the opportunities for church members and constituents to make provisions for giving through United Methodist churches, institutions, agencies, and causes by means of wills, annuities, trusts, life insurance, memorials, and various types of property.
- Arrange for the dissemination of information that will be helpful in pre-retirement planning, including such considerations as establishing a living will, a living trust, and the need for each person to designate someone to serve as a responsible advocate should independent decision-making ability be lost.
- Comply with directives of the Charge Conference and to carry out such other responsibilities as determined by the Charge Conference.
THIS RESOLUTION WAS APPROVED BY A VOTE OF:
- _______ For
- ______Against
- ________Abstained
- CHARGE CONFERENCE
- _____________United Methodist Church
- ______________(city), ____________________(state)
- Signed ths date ___________________ by:
- ____________________________________
- Recording Secretary
- ____________________________________
- District Superintendent
- ____________________________________
- Pastor
- ____________________________________
A meeting of the Permanent Endowment Fund Committee should be called by the chairperson within 30 days following the Charge Conference session which created the Committee. A call or letter to your Conference/Area United Methodist foundation by the committee chairperson prior to this meeting can provide some distinct benefits.
- the Foundation will be informed about the new Committee
- the staff schedule of the Foundation might permit someone meeting with the Committee for its organizational meeting
- the Committee can benefit from a wealth of resources and expertise available through the Foundation office
The first opportunity facing the Permanent Endowment Fund Committee will be the creation of a Charter for the local church Endowment Program. This opportunity will enable the Committee to lead the church in organizing the Endowment Program in an orderly and effective manner.
A draft of a Charter, what we call an "Endowment Resolution," is offered on this web sitefor the Committee as it seeks to develop a document which will be presented to a regular or special Charge Conference to effect the creation of a Charter for the local church Endowment Program. Click here to go to the Endowment Resolution.
