The United Pentecostal Foundation has been established to encourage, promote, facilitate, and motivate the making and granting of gifts and to provide financial education and investment services for the long-term stability and growth of the UPCI. One of the many tools the Foundation offers is endowments/scholarships. Our districts, ministries, schools, churches and individuals are recognizing the benefits of creating endowments and scholarships more and more.
Some churches create stewardship guidelines for targeted needs before any funds are in hand to attract designated and planned gifts from individuals in the future. Some individuals prefer to launch their own endowments to benefit a specific church program, ministry or to benefit several needs. Some individuals establish funds now so they can see them work, while others establish endowments through wills or charitable trusts for future funding.
Why do these ministries and people choose to create or add to endowment funds? There are several reasons. Here are five you may wish to consider:
1. Strength - The idea of creating a perpetual stream of financial support makes sense to people who see a similarity between retirement funds and endowment funds. They like the concept of a fund that is permanently secured and invested separately from other assets, so the principal of the fund will stay intact. Only the income or a percentage of the value will be used to support the chosen ministry. This creates recurring, ongoing funding strength!
2. A Positive Legacy - When donors attach their names to an endowment fund or add funds to a church or ministry-established endowment fund, they create an enduring legacy that will outlive them and influence many generations. Other family members and friends will be reminded of the person’s passion and commitments to the church. Endowment funds can also be used to honor the lives of others who have made a significant impact on the donor and/or the church.
3. Preserve Gifts - Many donors see an endowment fund as a means to underwrite their own regular giving. For example, an endowment fund of $20,000 could create an annual gift of $800 - $1,000 forever. It’s a great way keep giving every year even after your lifetime.
4. A Firm Foundation - Endowments are properly invested in a diversified long-term mix of assets to provide maximum return and minimal risk. Annual payouts from endowment funds permit a church or ministry to plan more confidently for the future. A church or ministry with a strong endowment is simply more stable financially.
5. Personal Satisfaction - There is something very fulfilling about doing something that lasts, something that really makes a difference. Other kinds of giving are important but, creating or adding to a fund that will benefit others until the Lord returns brings excitement to those funding the vision. Giving to an endowment that will fund ministries, impact lives and spread the Gospel is very satisfying.
Whether an endowment is opened to fund a bible school or church-in-a-day, those giving to the endeavor can be pleased knowing that the mission of the endowment will be met, and the funds given to the endowment will continue to make a difference in the Kingdom of God. For more information concerning how you can create or fund an endowment/scholarship contact Kent Russell at krussell@upci.org or 636-229-7981.
Kent Russell
Kent Russell is the Director of Planned Giving for the UPCI Stewardship Group.