Endowments

Webster defines Endowment as “the act or process of furnishing with an income.” If the church is to remain on the frontier, it must plan for future as well as present mission and ministry; but unless these plans include ways of funding this mission and ministry, they may be only empty dreams. The concept of endowment funding says to the church and to the community that the church is here to stay…that it is both planning and funding for the future.

One thoughtful church member reasoned, “Those persons who preceded me in this church left a rich heritage. What will I leave as a heritage for future generations?” Is it possible that a part of that answer might be found in a carefully thought-out and designed funding plan that will address the future as well as present needs and opportunities of the church?

Endowment funds are a good way for your church to say:

  • We believe in the future of this church.
  • We want to be guided in our stewardship by the belief that all we have is a trust from God.
  • We want to build a sense of permanence in what we do.
  • We want to be good stewards as a “church family” even as we expect each member to be a good steward.
  • We want to “go the extra mile” in providing services and programs that formerly (due to budget constraints) were only dreams.
  • We want to create a heritage that future generations can celebrate as joyfully as we celebrate our rich heritage today.

An elderly member was discussing her “stewardship philosophy” with a planned giving counselor. “My church has always been an important part of my life, and I want to always be a part of my church.” One of the ways she accomplished this during her lifetime was through her generous and faithful contributions from her current income, but she gave her stewardship conviction permanence as she established an endowment with the remainder of a life income gift. “Now,” she said with a great deal of satisfaction, “I will be a part of this church every year even after I am no longer here to make my contributions.”

Endowments have provided a major source of funding for many institutions in our society for years, helping to ensure present and future financial stability. Yet, there are those who say that churches should not have endowments…that endowments become disincentives for current giving by the congregation. But, in churches where such disincentives exist, the problem is not the existence of an endowment; instead, it is how the endowment was set up and how the income from the endowment has been used.

Endowments for local churches can be compared to inheritances for individuals. Some individuals have been “spoiled” by an inheritance…others have been greatly blessed and have become better stewards because of their inheritance. The problem is not with the inheritance, but with how it is left and how it is used. So it is with endowments in the local church. To say that there is no place for endowments in the funding plans of the local church would be as unthinkable as saying that no one should ever be left an inheritance because some have abused their inheritance.

One model for an endowment program in the local church allows for endowments to operate in three designated areas:

  1. Missions Endowments (for missions in and beyond the local community)
  2. Church Property Endowments (for maintenance, care, improvements, and construction of physical facilities)
  3. General Endowments (for special needs and ministries determined by the church leadership)

While endowments benefit from current gifts and deferred gifts (gifts that will benefit the church at a later time), their existence will especially encourage deferred gifts to the church that might otherwise have been given to other charities which have endowment funds in place. Many churches have never talked about and encouraged donors to consider deferred gifts as well as current gifts to benefit their church. While on the particular occasion Jesus was talking specifically about prayer, could this perhaps be another modern-day and practical application of His words, “You have not, because you ask not.”

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