1.  Epworth Has an Endowment Fund!
            (See the "Endowment Fund FAQ" below for quick answers to frequently-asked questions about Epworth's Endowment Fund.)

The Charge Conference, meeting December 1, 2003, chartered the Endowment Fund Program for the purpose of ““providing members and friends with opportunities to make charitable gifts to Epworth United Methodist Church that will become a permanent endowment of financial support and a living memorial. The Endowment Program is intended to support projects and programs over and above those where expenses can be covered by the annual operating budget and the sacrificial giving of Epworth’’s members and friends.””

Donations may be made for many different purposes. They may be designated for a particular or general purpose or may be undesignated, allowing the Endowment Committee to determine the most beneficial distribution. The Endowment Program provides the opportunity to create a permanent memorial for a loved one; perpetuate current annual giving; ensure continued funding for a program that has been especially meaningful; provide funding for necessary but unexciting items that don’’t typically inspire donors’’ enthusiasm; or allow the church to maintain or expand programs during economic downturns.

Gifts donated to the Endowment Program are assigned, consistent with donor instructions, to the following categories:

     Mission Endowment Funds for missions in and beyond the local church and community;
     Property Endowment Funds for maintenance, care, improvements, additions to, or construction of physical facilities;
     Special Purpose Endowment Funds for other specific purposes, such as the Scholarship Fund;
     General Purpose Endowment Funds for other needs and ministries as determined by the Endowment Committee.

Gifts can be made in many different forms and over a variety of time commitments. Many of the following options have substantial economical benefits for both donor and recipient.

     Outright gifts of cash, real estate, securities, etc.
     Bequests - Any type of property owned at death can be transferred to the church by the donor’’s will
     Annuities - Donors who need to continue to earn income can set up an annuity with a guaranteed life income
     Trusts - Donors can make a financial contribution now that will either yield a life interest for the donor or provide income to the church over a scheduled     period of time
     Life Insurance - An insurance gift can be made by transferring the ownership of an existing policy, assigning the church as a charitable beneficiary, or purchasing a new policy with the church as owner 

2. Get to Know your Friends on Epworth’’s Endowment Committee

Have you been thinking about a gift or bequest to Epworth? Does your will mention Epworth as a beneficiary? Are you worried that you don’’t have a will? Do you need help budgeting your household finances? Do you need an introduction to a reputable attorney, financial planner or accountant?

Then get to know your friends on Epworth’’s Endowment Committee - our job is to help you when it comes to answering those questions.

According to the Epworth’’s Endowment Fund Charter, the Endowment Committee shall have the powers and duties authorized by The Book of Discipline of the United Methodist Church and granted by the Charge Conference, including:

a. Provide the services described in Paragraph 2532.5 (The Book of Discipline of the United Methodist Church –– 2000) as designated by the donor or at the direction of the Charge Conference upon notice to the Board of Trustees.
b. Stress the opportunities for planned giving by church members and constituents, making provisions for giving through United Methodist churches, institutions, agencies and causes by means of outright gifts, wills, annuities, trusts, life insurance, memorials and various types of property.
c. Emphasize the need for adults of all ages to have a will and estate plan, and provide information on the preparation of these to members of the congregation.
d. Arrange for the dissemination of information that will be helpful to potential endowment donors, 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 the independent decision-making ability be lost.

Don’’t hesitate to contact any one of us and we’’ll do our best to help you realize your legacy where Epworth is concerned!

3.  Endowment Fund FAQ
               (Quick answers to frequently-asked questions about Epworth's Endowment Fund)

How can I contact Epworth's Endowment Committee? 

You can contact Tom Scholl, Epworth's Endowment Committee Chair, Reverend McCurdy or Ron Clark, Epworth's Treasurer.

What has been been endowed at Epworth so far? 

Three endowments have already been established by thoughtful donors. These are:
        1. The General Endowment Fund, initially established by Ms. Louise Fetzer.
        2. The Delbert and Bernice Foster Scholarship Fund.
        3. The Reverend Gerard and Rita Green Family Endowment for Global Missions. 

How can I make a contribution to Epworth's existing endowments? 

Simply drop an envelop with your check into the weekly offering plate, specifying the name of the endowment to which you wish to contribute. For an arrangement to suit your specific needs, contact anyone on Epworth's Endowment Committee as mentioned above.

How much can I contribute to an existing endowment?

Whatever you feel comfortable with! You can contribute in any amount whatsoever and at any time! 

What is the initial amount of money required to establish a new endowment?

Since endowments are intended to last in perpetuity, the short answer is an initial commitment of at least $10,000.

Can I spread my endowment gift over time?

Absolutely! For example, you could make an endowment gift commitment of $25,000, make an initial payment of $10,000 to create a new endowment and then spread the remaining $15,000 over 3 or 5 years, according to what is best for you. Alternatively, if you are adding to an existing endowment, you may spread the entire $25,000 over 5 years, for example.

I don't have $10,000 right now. Can I establish a new endowment with less than that amount?

You can notify the Endowment Committee of your intent to create a new endowment and then fund it over time (with your own donations and/or donations from others.) For administrative reasons, Epworth's Finance Committee has the responsibility for such funds. When the fund size reaches $10,000, that amount will be transferred from the Finance Commitee to the Endowment Committee and a new endowment will be created according to your instructions.

I do not feel comfortable using cash to fund an endowment now, but how could I recognize Epworth in my will?

No problem. First you need to make sure you and your family have a will. There are many ways to recognize Epworth in your will as a beneficiary. Speak to your preferred attorney, or contact Epworth's Endowment Committee as mentioned above. 

Who is Epworth's Endowment Fund Investment Advisor and how may I contact him/her?

Our advisor is Mr. Carl W. Vail, a Certified Financial Planner, with Smith Barney. Carl may be reached at 301-840-0890 or carl.w.vail@smithbarney.com.

Is God Good All the Time?

God is good all the time, and all the time God is good!

4.  A Primer on Planned Giving vs. Other Types of Giving?

          (Oftentimes, members of our congregation ask about the difference between planned giving and other types of giving. The following is freely adapted from              an informative article written by the United Church of Christ.)

The most significant difference between ““planned”” gifts and other types of gifts is that a planned gift provides a FUTURE value to the church rather than an IMMEDIATE value.

Historically, most planned gifts have come from donors’’ accumulated assets. Though limited, today there is a discernable increase in the number of gifts coming from earned income as church members learn that at least part of their retirement security can be built on life income gifts, one of the most frequently funded of the planned gift types.

The donor funds a gift now and receives income for life, after which the church receives the remaining principle. Life income gifts include gift annuities, pooled funds, and charitable remainder trusts. In addition to life income gifts, planned gifts also include wills and bequests, and certain life insurance arrangements.

To understand how planned giving can relate to other types of giving in the church’’s life, it is helpful to:
·  Review the five principal types of giving;
·  Look at the challenges most commonly faced as churches consider any type of giving;
·  Distinguish how planned giving can support other types of giving.

5.  Types of Giving

The spirit of ““family”” suggests an appropriate way to describe the most common types of giving that occur in the church. Among the members of the giving family, the categories include:

·  Annual Giving. Usually a one-year pledge, contributed weekly or monthly, to fund the ongoing costs of church operation. The source of most annual giving is earned income from the family paycheck.

·   Capital Gifts. Gifts for special purposes such as building restoration, endowment, new building, staff additions, new programs, special mission appeals, and debt reduction. A capital campaign typically raises a large sum over a period of several years. Sources of income include earned income and accumulated assets:

·   Planned Giving. Planned gifts or life income gifts have come from donors’’ assets, including retirement plans. Donor makes the gift now, and the church receives the income in the future.

·   Special Offerings. Typically a once a year appeal for a special cause, including annual denomination-sponsored offerings. The appeal may be based on the hope of obtaining an immediate response to meet an immediate need, including natural disasters and other emergencies. Source of income: immediate available cash

·   Memorial Giving. Gifts made in memory of family members or friends upon their death, often designated for a particular purpose or fund. May also be made to an endowment fund. Source of income: usually, available cash.
Planned giving relates uncommonly well to other forms of giving because it so effectively supports and undergirds each of the other forms. Consider the following possibilities.

·   Annual Gifts. A donor can provide a life income gift (or a series of gifts over several years) that, when the donor dies, can provide income to continue the donor’’s annual contribution in perpetuity.

·   Special Offerings. A donor can make a life income gift that provides, when the donor dies, an ongoing stream of income for that special program or purpose. Special programs change with time, however, so it is wise for a donor to have an ““escape”” clause that will allow the church to redirect the income if the original need no longer exists.

·   Capital Gifts. If endowment development is included in a campaign, a donor’’s life income gift can become a guaranteed future addition to that endowment and can be included in the capital campaign goal.

·   Memorial Gifts. A donor can make a planned gift designating a memorial fund or an endowment fund in memory of a loved one.

6.  Planned Giving: The Best Kept Secret in the Church

Each year clergy bury hundreds of people who would gladly have made a life income gift during their lifetime if they had known about the possibility or how to do it.

Increasingly, church members are encouraged by educational, medical and other non-profit institutions to consider a life income gift. Our church members are often given planned giving opportunities by every organization except their church!

The benefits and potential of planned giving may be the best kept secret in the United Methodist Church.

A critical dimension in developing a planned giving ministry is getting it started and keeping it going. Church members need to learn about planned giving early and be reminded often.

One major deterrent to planned giving success in churches is the difficulty of communicating a new concept or to communicate it in a way that is so technically complex that people get confused and discouraged.

7.  Planned Giving as a Testimony of Faith

Planned giving supports the church’’s total mission for individuals as well as the institution. A planned gift is a living testimony to a vital faith. The testimony of the planned gift is vitally needed in most churches. Planned giving can help church members witness to one another in their acts of faith.

The person who gives a life income gift is one who genuinely believes that the church will ““be there”” for future generations. And the person who believes the church will continue indefinitely is one who firmly believes that it is God, not humankind, who is in charge.

8.  Planned Giving Is Part of the Family of Giving

The financially, intellectually and spiritually healthy church will clearly understand that each type of giving is part of the ““family”” of giving. Church members are not asked or expected to choose one or another members of the giving family: all methods of giving are equally accessible and helpful to the donor as well as the recipient. None of the methods is or ought to be seen as a deterrent to the other. In fact, quite the opposite is true. Each method helps the other –– commitment inspires commitment and generosity inspires generosity.

If the church is to be serious and authentic about stewardship in any of its varied forms, it is imperative that a major commitment to the stewardship of assets be included. Our assets, in the Christian understanding, are gifts from God entrusted by God to our management. How we deal with our assets accurately reflects our values and whether we believe the Gift-Giver.

Planned giving needs to be an integral part of a church’’s life. It is a ministry of faith in action.

9.  Some Examples of Planned Giving

A retired couple may be limited in their ability to contribute to a capital campaign because they may need the income that their investments provide.

However, they may be able to transfer highly appreciated stock or other property to the church to fund a life income gift that may reduce their taxes and increase their income. Thus enabling them to make the generous gift they would like to make but couldn’’t afford until they planned their giving.

Or again, a donor may have appreciated property that costs taxes each year but produces no income. Such property can be transferred to the church and sold by the church to provide a life income gift for the donor. This provides income rather than a loss for the donor, as well as enabling the donor to make a generous cash gift for the church’’s campaign

10.  Is Planned Giving Competitive or Complementary to Other Forms of Giving?

The several different ways that church members contribute are not in competition with each other. However, secular mindsets tend to prevail in the church and create some erroneous and unexamined assumptions about how church members give.

First, some churches are reluctant to develop a planned giving ministry because they fear that planned giving will increase a church’’s endowment and that, in turn, a large endowment will discourage annual giving.

The notion that poor giving by church members is the fault of a large endowment is an appallingly false claim. Poor giving results from prior stewardship leadership and practices. To blame the commitment and generosity of our forebears for our present day failures raises serious questions about a church’’s integrity.

No matter how large a church’’s endowment may be, if the endowment income policies faithfully reflect the church’’s mission and are not simply used in a self-serving manner to fund current operating costs as a way of avoiding serious stewardship, that church will be blessed and not burdened by its endowment assets.

Second, ““pigeonholing”” can also be a problem for church leaders who think about giving. Many persons tend to separate rather than integrate their thoughts about giving and as a result, develop a single-focus mindset.””

For example, a prevailing view held among many church leaders is that a capital campaign will automatically reduce regular giving. The erroneous assumption is that church members will ““rob Peter to Pay Paul,”” redirecting their regular giving if they are asked to give for a special purpose, and that church members will not give for more than one appeal.

This incorrect assumption is, in reality, a seriously negative judgment on the basic attitudes and generosity of church members.

The real truth is that those members who give most consistently are also those who will make the greatest effort to respond to a special appeal. The real issue is the quality of stewardship leadership provided by the church.

- Please contact Epworth’’s Endowment Committee for further information.