Frequently Asked Questions

Why consider the Foundation investment of our funds rather than our local bank or broker?
Certainly local banks provide valuable depository and short-term investment services to our churches. Many of our churches have bankers, brokers, and investment management specialists within the congregation. While these individuals can provide invaluable direction for the church’s overall investment policy or program, it is often preferable to engage an outside professional manager to implement the program and conduct the individual transactions. Conflicts of interest can be minimized, and differences of member opinions over specific investment products eliminated. Also the funds are invested in accordance with the Social Principles of The United Methodist Church.

How have the Foundation investments performed?
The Foundation investment program emphasizes the long term for most church investment programs. We encourage a realistic evaluation of financial position and risk tolerance. Within the boundaries of our investment options, our long-term investment performance has generally been quite good.

In addition to prudent investment performance, what other benefits might accrue to a church from a partnership with the Foundation?

The Foundation stands ready to support our Conference churches or member groups in many ways financial. We can provide workshops on topics including church finance, the importance of wills and planned giving, and creative ideas for stewardship campaigns. As a connectional Methodist organization we strongly support mission activity both from within the Foundation and from within the church. We provide scholarships for worthy conference students, and support food pantries, camperships, specific memorials and special projects.

It seems that many of our faithful and supportive church members have not made provisions to commensurately support the church upon their death. Can the Foundation provide assistance in this area?
The Foundation is pleased to provide workshops on the importance of wills, bequests and planned giving. We prefer to work with attorneys and financial specialists from within the congregation for the presentation. A will is especially valuable to Christians, typically providing not only for their family’s needs but also their charitable interests. Unfortunately, most United Methodists die with no will, permitting the laws of the state to distribute their possessions and deny their charitable interests.

What about Charitable Gift Annuities or Charitable Remainder Trusts?
These can be excellent vehicles for the benefit of a church or charity. Essentially, assets are transferred for the ultimate benefit of the church while paying income back to the donor, typically for life.

Charitable Gift Annuities, which usually pay the donor a very competitive income rate for life, are available free of charge from the Foundation.

Charitable Remainder Trusts must be established through an attorney.

Even when members plan for their charitable giving through estate planning, organizations such as a college, the Red Cross or the Salvation Army seem to receive preference over the church. Is there anything the Foundation can do to help member awareness of the church’s long-term needs?

We applaud and respect Christian charity in whatever form our Methodist members choose to provide it. Our charitable nature does respond to perceived needs, and there are times when other organizations more effectively communicate their needs. The Foundation can help your church establish a program designed to effectively and regularly communicate the needs and the works of your church.

Establishing a permanent endowment fund with a clear long-term ministry mission also enhances the opportunity to attract larger, pre-planned gifts. Some donors simply prefer to give to an endowment fund; others may see the long-term needs of the church clarified by an endowment fund. The Foundation can help the church establish and administer an endowment fund.

Is establishing an endowment fund complicated?
While desire and some effort are required from the church, the Foundation can provide impetus and guidance. We can meet with a small group, provide some model documents and brochures, perhaps set up a workshop, and help organize a regular communication plan.

Establishing an endowment fund through the Foundation is simple process, requiring a minimum initial deposit of $1,000. Once established we can help make the endowment fund an important part of the overall plan of financial support for your church. The Foundation will invest the endowment funds with long-term goals in accordance with prudent investment standards and the Social Principals of the United Methodist Church.

I have some appreciated stock that I would like to donate to the church. If I sell the stock and give the proceeds to the church, I will incur a tax liability. Can the Foundation help with this type of gift to my church?

Yes. Contact the Foundation Office. If you gift the stock initially to the Foundation, we will sell it through our broker and send a check to the church for your credit. The check would represent the market value of the stock less any applicable brokerage fees. This Foundation charges no fees for this service. The Foundation would be pleased to discuss other “tax smart” opportunities.

How does the church or its member get access to Foundation services?

Call or e-mail the Foundation office. We welcome the opportunity to converse with you and possibly visit with you or a group at your church