Congregational Endowments Funds
Treating Stewardship Myopia
by David Swartling, Esq.
Chair, ELCA Foundation Board of Trustees, 1997-2005
Congregations, like individuals, often lack distance vision. Almost every
year, they ask members to give proportionately from their income to
support the congregation’s ministry in the next fiscal year. That’s
important, but it ignores the long term perspective. And it ignores the
financial reality of most Americans. It is stewardship myopia.
A former Bishop of the Northwest Washington Synod, Paul Bartling, who was
a missionary in Korea for many years, points out that Korean Lutherans do
not think of proportionate giving in terms of income, but rather in terms
of net worth. If we view everything that we have as a gift from God, this
perspective will cure our stewardship myopia and allow us to focus more
clearly on ministry opportunities in the future. Congregations, like
individuals, can leave a legacy for ministry.
In order to have effective distant vision, congregations need to focus on
whole life stewardship. The ELCA Foundation can assist in providing tools
for pastors and lay leaders to talk about “Leaving A Legacy for Ministry.”
While that probably is the most important aspect to providing long term
focus on a congregation’s future ministry, it is not the only one. Without
an effective mission endowment fund, congregations miss the opportunity to
address whole life stewardship and risk creating problems if they receive
unexpected gifts or bequests.
Two years ago, I devoted a portion of my sabbatical to study
congregational endowment funds. Many ELCA congregations have endowment
funds, but too often they are moribund. At the risk of over-simplification,
let me identify ten ways congregational
endowment funds can avoid stewardship myopia:
1. Develop a Policy for
Handling Receipt of Planned Gifts and Bequests
The failure to have a policy in place before a significant gift is
received can lead to discord and discourage future gifts. Conversely, such
gifts, effectively recognized and managed, can spur endowment fund growth.
2. Create an
"Official" Mission Endowment Fund
Too many congregations do not have mission endowment funds or think that
the Memorial Committee is the same thing. Usually, the reasons given by
congregations for not having a mission endowment fund are that no one has
made a gift and/or that they do not have someone to set it up. The ELCA
has an excellent publication, now available online, entitled
How to Create a Mission Endowment Fund
(PDF). You don’t need a lawyer to
create a mission endowment fund! (And don’t forget to include the word
“mission” in the name!)
3. Amend the
Governing Documents to Provide for the Endowment Fund
A congregational mission endowment fund is not a foundation or a separate
entity. It should operate as a committee of the congregation. It can be
established by a simple amendment to the congregation’s bylaws or
continuing resolutions.
4. Develop a Strategy
for Initial Funding
Establishing a mission endowment fund must be linked with development of a
strategy for raising funds from planned gifts and legacies. Because it is
wise to reach an initial threshold before making grants or gifts, a
congregation should seize the momentum when the mission endowment fund is
created to develop a strategy for initial funding. In my congregation, we
set up the endowment fund, developed a plan for matching gifts, and
someone gave $50,000!
5. Focus on
Stewardship, Not Investments
One of the most common problems in congregational mission endowment funds
is that they become de facto investment clubs and not an integrated part
of the stewardship planning of the congregation. Making investment
decisions should not be the principal focus of a congregational mission
endowment fund. The focus should be on the congregation’s ministry,
including stewardship.
6. Make Wise
Investment Decisions Consistent with Church Policies
By definition an endowment fund is in perpetuity. Investment decisions
involve different considerations than those in managing a memorials
account or retirement planning. Yet it’s surprising how many congregations
invest in CDs or a brokerage fund (usually connected with or recommended
by some member of the endowment committee). Perhaps the best way to avoid
this pitfall is to invest in the ELCA Foundation, which operates a pooled trust to manage endowment funds of the
churchwide organization, synods, congregations, and other
agencies/institutions of the Church. The ELCA Foundation also manages its
funds consistent with the social statements of the Church.
7. Engage in Long
Range Planning
Just as a congregation’s regular stewardship program reoccurs, the whole
life stewardship focus of an active mission endowment fund should be
integrated into the congregation’s yearly cycle.
Consider a year end emphasis that includes
cash gifts and charitable gift annuities. Tax planning and stewardship
are not mutually exclusive. Education in estate planning needs to be
integrated into a congregation’s stewardship program.
8. Make Periodic and
Appropriate Grants
Once a minimum initial threshold is reached, a mission endowment fund must
have a mechanism to make regular grants. This facilitates and often
expands the ministry of the congregation. Moreover, the grants should not
support the regular budget or merely give extra dollars to a charity
favored by committee members. I recommend that the documents creating the
mission endowment fund require grants to be given concentrically: for
local purposes, for regional ministry, for churchwide uses, and for global
missions.
9. Celebrate Grants
from the Mission Endowment Fund
When gifts are received or grants are made from the mission endowment
fund, they should be publicized. When someone leaves a bequest to the
congregation, it constitutes the best witness of whole life stewardship.
Similarly, when grants are made, they should be publicized and celebrated
at a worship service.
10. Nurture Proactive
Leadership
The most important common denominator of successful congregational
endowment funds is effective and persevering leadership. Too often, a
congregation establishes a mission endowment fund, receives initial gifts,
makes several grants, and then goes into hibernation.
My trusty bifocals equip me to see clearly both close up and at a
distance. They help me avoid myopia. Congregations can avoid stewardship
myopia by creating and supporting mission endowment funds. Leaving a
legacy for ministry, both individually and congregationally, can
facilitate and enhance the mission and ministry of our Church.
Seattle, 2005. |
