Grace-St.
Luke's Endowment Fund: Stewardship of God's Bounty
THE
MINISTRY OF GIFT PLANNING
"Where
your treasure is, there will your heart be also." Matthew
6:21
Laying up treasure
on earth is not a goal for Christians. Wisely using what we
have is.
We are stewards of
God's bounty. Caretakers. For a brief period we are given time,
energy, and resources. What we do with these gifts ultimately
defines the character of our life and the depth of our spiritual
understanding.
Gift Planning is
one expression of the wise use of the personal resources God
has entrusted to us. It is one way to put your treasure where
your heart is - in the church -and still take care of your needs
and those of your family. Understanding gift planning and making
it available through our church is a ministry we provide not
only to the donor (giving the donor a means of thoughtfully
transferring resources to the next generation) but also to the
church (helping the church to gather the resources necessary
for its mission and ministry).
W
HAT IS GIFT PLANNING?
Gift planning encompasses a variety of ways that gifts can be
made to the church. It usually involves financial or estate
planning; however it is not reserved for the wealthy. Gift planning
is a means by which anyone concerned with the wise use of his
or her personal resources makes a considered choice about their
ultimate disposition.
In general, planned
gifts are made through:
+A Bequest in a Will
+A Life Income Gift….such
as a pooled income fund, a charitable gift annuity, or a charitable
remainder trust
+Gifts of Special
Assets…such as real estate, closely held stock, life insurance
The Grace-St. Luke's
Endowment was created in 1963 to provide funds to enhance its
ministries, particularly the Outreach ministries. Beginning
with gifts of $11,000, the fund has grown to more than $2 million.
The Endowment Fund is the foundation of GSL's giving programs
and is important not only to the long-term growth of the church,
but also to GSL's ability to increase its offerings to the community
today.
THE
FUNDS
Several funds fall under the Endowment umbrella. First, and
largest, is the General Endowment Fund with a total of approximately
$2 million. Three percent of the average rolling 3-year balance
is available each year for the Vestry to use for extraordinary
educational, religious, and charitable expenditures.
Several small funds
provide monies for specific purposes. The Trezevant Fund is
used for expenses related to Trezevant Hall; the White Fund
benefits the Altar Guild, EYC and Scouts; the Phillips Fund
benefits youth; the Sam Batt Owens Fund benefits music; and
the Heritage Fund benefits grounds and property.
WAYS
TO GIVE
A Bequest in a Will: This is the most common way of making a planned gift,
although roughly 50-70% of all church members die without a
will. A bequest can take the form of a set amount of money,
a percentage of an estate, a specific asset, a trust, or the
naming of a church-related organization as a contingent beneficiary.
Life
Income Gifts can be established
in several ways:
+Episcopal Church
Foundation's Pooled Income Fund. Gifts ($2500 minimum) are
"pooled" with other gifts and invested in a professionally
managed investment portfolio. Benefits to the donor include:
*A guaranteed income
for life. The amount of income depends on the rate of return
on the fund's investments, and can flow to another designated
beneficiary.
*An immediate federal
income tax deduction.
*The elimination
of capital gains taxes, if funded through appreciated securities
such as stocks or bonds. At the death of the final beneficiary,
the property goes to the church or church-related beneficiary
that is named.
+Charitable Gift
Annuity. Benefits are similar to the Pooled Income Fund
with the following differences:
*Income for life
is guaranteed at a fixed rate.
*A portion of the
gift is deductible from income taxes.
*Some of the income
received would be tax exempt.
*The minimum gift
is $5,000.
+Charitable Remainder
Trust. Involves larger sums of money (usually $100,000 or
more) and is individually managed. This option also provides
income for life, an income tax deduction, relief from capital
gains taxes if funded through appreciated property, and a possible
reduction in estate taxes. This type of Trust can be added to
over the years, and a portion can be set aside for growth as
a hedge against inflation. The rate of return fluctuates based
on performance of the portfolio. A Charitable Remainder Annuity
Trust is an option to consider for a set rate of return
annually.
Outright
Gifts of Real Estate, Appreciated Property, and Tangible Personal
Property. Gifts of appreciated
real estate or securities allow donors to avoid capital gains
taxes although they must be transferred to the church prior
to being sold. If the securities or real estate have decreased
in value, these assets may be sold prior to making the gift,
thus establishing a capital loss and a potential tax deduction
for the donor.
Gifts of tangible
personal property such as jewelry, works or art, automobiles,
etc., may also be made to the church. Donors are responsible
for setting a value on the gift unless in it greater than $5000
in which case it must be independently appraised.
Gifts
of Life Insurance can
be made by naming the church the owner and beneficiary of a
new or existing policy. Donors can also make the church a contingent
beneficiary of an existing policy, i.e., name the church to
receive proceeds of a policy if the designated beneficiaries
predecease the insured.
For gift planning
information and assistance, contact:
Linda Stine, Financial Officer
Grace-St. Luke's
Episcopal Church
1720 Peabody Avenue
Memphis, TN 38104
linda@gslparish.org
