The Union United Methodist Church Permanent Endowment Fund was established in February of 2019 by Resolution and structured according to its Governing Document. The fund was established to provide a way to leave a lasting gift to Union for gernerations to come. The Endowment is a permanent fund meaning that the gift you give will be used to generate income and gains, which are used for distributions, but the principal gift will always remain in the fund. Additionally, the principal gift is grown by the inflation rate, which means a dollar given today will still have the same buying power as a dollar in the future.

The Fund is managed by the Endowment Committee, which reports to the Church Council of Union United Methodist Church. The Committee is comprised of an appointee of the Trustees, an appointee of the Finance Committee, the Pastor or their designate, the church treasurer, and 6 at-large members serving staggered 3-year terms. The committee is guided by the Endowment Fund's Investment Policy and Spending Policy.

The Endowment Fund was established so that you can leave a legacy gift for generations to come. Your gift to the Endowment is permanent and it cannot be spent like gifts given to the Church’s general fund. This perpetuity makes the Fund ideal for memorial gifts. Your gift will also continue to grow by the inflation rate so that it will have the same purchasing power in the future as it has today. Your gift will produce income and capital appreciation which, combined with the earnings of the other gifts, forms the annual distribution.

The Fund is separate from the church’s general fund and annual operating budget and it cannot be used to fund budget expenses. The annual distribution will provide for facilities or programs that enable Union’s mission or provide for outreach programs that would not be possible due to operating budget constraints. The Endowment Fund stands as a perpetuation of the love for Union and the faith and witness of each of its donors.

There are many ways to give to the Endowment Fund.  There are Current Gifts which are given in the present and Planned Gifts which are given in the future:

Current Gifts

Cash and securities are examples of current gifts.  These gifts can be given at any time and they may also provide a tax benefit in the year they are given.  A cash gift is the easiest way to give to the Endowment Fund.  Because gifts to the Endowment Fund are permanent (not spent on budget expenses), a cash gift to the Fund is ideal for memorial gifts.  To make a cash gift to the Endowment fund, simply indicate that the gift is for the Endowment Fund.  Write “Union Endowment Fund” on the offering envelope or in the memo field of the check or use the Endowment Fund tile in the online giving app.  Cash gifts to the Endowment Fund are generally deductible as charitable contributions for income tax purposes.  Please consult your tax advisor to determine how a current gift to the endowment will affect your taxes.

A gift of securities, such as stocks, bonds, or mutual funds, is another way to give a current gift to the Endowment Fund.  With the strong performance in the markets in recent years, now may be a particularly beneficial time to make a gift of securities.  By gifting securities worth more than they cost and held longer than a year, not only can you take a tax deduction for the full market value, you will also avoid paying the capital gains tax you would incur had you sold them and gifted the proceeds.  To gift securities to the Endowment Fund, you will need to instruct the institution holding them to transfer the securities to the church’s brokerage account.  Please contact the church finance office for the brokerage account number and DTC number that your financial institution will need in order to make the transfer to Union.

Planned Gifts

Planned gifts are significant charitable gifts, given during a donor's life or at death, that are part of the donor's financial or estate plan.  Giving through life insurance, retirement plans, wills, and living trusts are examples of planned gifts.  There are a number of ways to give through life insurance but the easiest way is to simply name the Union Endowment Fund as a beneficiary on the policy to receive a portion or all of the proceeds.  Likewise, Union Endowment Fund can be named as a beneficiary on a retirement account.  If you have a traditional IRA and are required to take a required minimum distribution (RMD), a gift to the Endowment Fund from the IRA can count towards the RMD for that year and provide tax savings.

It is extremely important to have an estate plan.  A will is a vital tool for setting forth your wishes regarding the instructions for the care of minor children as well as the distribution of your property.  A revocable living trust is commonly used in addition to a will to help minimize the expense and delay in the distribution of assets by avoiding probate.  Not only does an estate plan deal with the distribution of assets and legacy wishes, but it may help you and your heirs pay substantially less in taxes, fees, and court costs.  A bequest to Union Endowment Fund can be made for a specific dollar amount or for a percentage of your estate.  It could also be made as a remainder of the estate after those you want to provide for are taken care of. Please consult your tax advisor to determine how a planned gift to the endowment will affect your taxes.

How do I get more information on ways to give?

The Endowment Committee has a limited supply of pamphlets on the following topics:

•    Giving Securities

•    Giving Through Life Insurance

•    Giving Through Retirement Plans

•    Giving Through Your Will

•    Giving Through Living Trusts

•    How to Make a Will That Works

Please reach out to the church finance office and we will make sure you get the pamphlets that are most helpful for your needs.

Is there more information on Estate Planning?

On March 19, 2023, the Endowment Committee sponsored an estate planning seminar featuring Lisa Lee Smith who covered the basics of creating an estate plan. You can watch the recording of that seminar here. 

Gifts of all sizes are important to the Fund's growth. Every gift increases the Fund's earning power. Each gift is significant to the Fund's cumulative impact.

Is there more information on Estate Planning?

On March 19, 2023, the Endowment Committee sponsored an estate planning seminar featuring Lisa Lee Smith who covered the basics of creating an estate plan. You can watch the recording of that seminar here. 

Yes, gifts to the Union United Methodist Endowment Fund are generally deductible as charitable contributions for income tax purposes. Also, gifts to the Endowment Fund are generally exempt from estate and gift taxes. Please consult your tax advisor to determine how a current or future gift to the endowment will affect your taxes.

Dividends, interest, and capital appreciation, also known as the total return of the fund, are available for distribution. Distributions are made annually, at the discretion of the Endowment Committee, and in accordance with the Spending Policy. Applications are submitted for the use of the funds and the Endowment Committee with select proposed projects based on the following criteria:

•    The project must be outside the scope of the missions, ministries, and expenses covered in the annual budget.

•    The project must be consistent with the purpose of the fund, which is to provide a funding source for outreach and missions of Union UMC or facilities projects that enable those minsitries.

If you have an idea for a facilities project, outreach program, or a mission of Union United Methodist Church but need the funding to make it happen, then apply for funds from the current year Endowment distribution. Applications requesting funds should be sent to the Endowment Committee for consideration. Requests should describe the intended use of the funds as well as the timing for the use of the funds. Download and complete the Endowment Funds Application Form and return it to the Church finance office or email it to our church finance office.

If your request is approved by the Endowment Committee, then a designated account will be established for your ministry and the granted funds will be moved there. It is from this account that you will request funds for your project. The Committee will monitor the project to ensure funds are used according to the request. If the project fails to move forward or if funds are left over from the project, then unused funds will revert to the Endowment Fund to be used for a different project or retained for next year's distribution.

There was no declaration for 2024 so no funds are currently available.