The primary purpose of the Endowment Fund is to support present and future Federated Church programs over and above those provided for in regular annual budgets. The Endowment Fund receives grants and bequests of two types. The first is undesignated contributions. These contributions go toward building up the fund’s assets to generate an income stream over time.
Earnings produced by this part of the fund may, on approval of the Endowment Fund Board of Directors, be used for religious, educational and charitable purposes to the further the work of Federated Church.
The second type of grant or bequest consists of designated contributions. These are to support specific religious, educational or charitable activities as specified by the donor or donors. Some gifts of this type, such as memorial contributions and trusts, have already been received by Federated Church. Over time it is expected that several named funds, each with a specified purpose, will be established. Such named-fund donors may limit expenditures to earnings only or may also provide for the corpus to be used for a predefined program or purchases.
Why an endowment fund?
By establishing the Endowment Fund on June 3, 1984, the congregation of Federated Church seeks to create new capabilities in the following areas.
To Encourage Developmental Activities: No church can serve the dynamic needs of today with a static program. New, experimental initiatives have to be conceived, tried and evaluated. With income from the fund, new efforts to fulfill Federated’s Overall Mission may be pursued. These would be nonrecurring expenditures of a catalytic nature. If the new ventures successfully meet important needs, they may, based upon the results of the trial effort, be considered by the congregation for funding through the regular budget.
To Attract Unrestricted Contributions: The fund is designed to attract contributions that might not otherwise be made available to help provide for unspecified future programs and initiatives of Federated Church.
To Encourage Specified Gifts and Bequests: In making a gift or bequest, the donor desires assurance that the contribution will be prudently managed and that the objectives specified will be achieved. The Endowment Fund creates within Federated Church an institutional capacity to accomplish these ends.
To Increase the Income Potential of the Investment Portfolio: Professional attention to and continuity in management of funds or property held by Federated Church can contribute to the Fund’s growth. Assurance of proper management encourages givers to make contributions and increases income earning potential.
The Endowment Fund is a developmental and management entity separate from other Boards of Federated Church. Assets entrusted to the care and management of the Fund’s Board of Directors are the property of Federated Church. Board Directors are elected by the congregation and charged with the following responsibilities.
|1.||Encourage and receive gifts and bequests of money and tangible or intangible property, including those assets held or acquired by the Church that can best be managed by the Endowment Fund Board.|
|2.||Manage the assets that are within its custody to generate levels of income consistent with prudent investment principles.|
|3.||Dispense income and (in some instances) principal in a manner consistent with the purposes of the Endowment Fund and the conditions (if any) stipulated by individual and corporate donors. In no instance will the Fund spend or lend more than one-fifth (in current value) of its cash or investment assets for any single project or program except as required by the terms of a designated gift or bequest. Income not distributed within six months after the end of the calendar year in which it was earned is added to the principal of the Fund.|
How to contribute
Contributions are made to The Endowment Fund of Federated Church. Unless otherwise indicated, gifts will be assumed to be undesignated. Designated gifts and bequests should be accompanied by a description of the donor’s wishes for the use of the contribution (both principal and earnings).
Funding proposals may be submitted to the Endowment Fund Board with this Grant Application.
Individual funds comprising the Endowment Fund portfolio as of May 8, 2015.