Endowment Committee

Churches have endowment funds to provide long-term financial support for their ministries and programs, ensuring sustainability and the ability to serve their communities for years to come. They are a strategic financial tool allowing churches to maintain buildings, support mission work, and enhance ministries. In general, the endowment fund will be able to provide financial resources for improvements to facilities and programs as the Parish grows. It can help the Parish budgeting process by creating a dependable source of long-term funding for special projects that will not impact the Operating budget.

Our annual pledges are used to cover the day-to-day operating budget of the church each year. Our annual budgets do not include funds for long term planning for facilities, growth of outreach and church programs, or future facility needs as the church grows. An endowment fund could provide financial stability, strengthen mission focus and expand community engagement through the church. Having both an operating budget supported through annual pledges and an endowment fund can create a healthy financial outlook for our parish.

The Endowment Committee is charged with the responsibility for investing Endowment Funds. These funds are held in the Virginia Episcopal Investment Fund (VEIF) managed by the Diocese. Professional investment advisors manage the various funds. St. Francis has utilized a balanced portfolio that has been relatively conservative to meet the needs of a charitable organization. This approach has proved successful in preserving these investments from dramatic market swings. All earnings have been reinvested into the Fund. The St. Francis Endowment Fund has over $254,000 in it at present.

To protect the principal, maximum spending level in any year is up to 5% of the average market value of the year-end valuation of the principal for the prior 3 year fiscal years. While many churches do use this money to supplement annual giving, St. Francis has never done that. All earnings have been reinvested. The Vestry must approve any expenditures from the fund.

Endowment funds are often funded by bequests from deceased parishioners.  At St. Francis all donations given in memory of someone are put into the Endowment Fund. In addition, St. Francis encourages planned giving from the members of the congregation, fostering a culture of generosity and ensuring future sustainability. While all funds are managed in a single endowment account, funds are usually categorized either as general funds that can be used for any purpose with Vestry approval or with individual donor designations restricted for a specific purpose. Approval of the Vestry is required before accepting any restricted gifts.

Financial stewardship is about participating in God’s mission today AND for the future. The Endowment Fund is a foundation for growth and to sustain the church’s ministry for generations to come. Your gift ensures that the ministries that you care about today will continue for future generations. These gifts have a lasting impact that can grow over the years. Endowment funds are a tool for stability. Giving to the Endowment Fund can be a wonderful way to show thanks for the church that has supported your spiritual growth and that of your family as well. Giving to the Endowment Fund is also a wonderful way to honor the memory of a parent, spouse, child or someone special to you. A gift can also create a personal or family legacy that will support St. Francis for years to come.

Planned giving, also called legacy giving, allows parishioners to support St. Francis Church through thoughtful estate and financial planning. These gifts may include bequests, beneficiary designations, charitable remainder trusts, charitable gift annuities, and donor-advised funds. Many planned gifts can be arranged now while being fulfilled later, often as part of a donor’s estate plan.

St. Francis also welcomes current tax-wise gifts, including gifts of appreciated assets such as stock, mutual funds, real estate, closely held business interests, or cryptocurrency. Donating appreciated assets directly may allow donors to avoid capital gains tax while receiving a charitable deduction based on fair market value.

For parishioners age 70½ or older, Qualified Charitable Distributions from traditional IRAs may also be an efficient way to give. A QCD can be transferred directly from an IRA to the church, may satisfy all or part of a Required Minimum Distribution, and is excluded from taxable income.

These options can help donors support the long-term mission and ministry of St. Francis while making wise use of available charitable giving strategies. Donors should consult their financial, legal, or tax advisor to determine which approach is best for their situation.

Learn more about planned giving and tax-wise giving options by clicking here.