Wallace SC&W Endowment Funds and Giving               Often money in the bank means lower giving for churches.  If a church is not careful, having money for a “rainy day” can make that crisis time come more quickly than it has to come or should come.  So if you have an endowment fund what are some issues to think about?    Teach your members to be good stewards. If basic stewardship principles are taught then regular giving will be minimally impacted, if impacted at all, by the presence of an endowment. Giving is not to support a budget but is a response to what God has and is doing.  We are to give out of gratitude, faithfulness, joy and a desire to show our trust in God.  But stewardship campaigns too often connect the challenge to give with the need to underwrite a budget.  This creates a misunderstanding of what stewardship is all about. When there is money in the account many people see no need to give because we haven’t taught them the reason to give. If you have an endowment fund be crystal clear about what it goes to support.  Churches don’t have to accept money for all causes (e.g. to paint the minister’s walls lime green).  Identify what purposes or areas you want the money to support.   Never forget the daily needs of our world. Many people live on the edge and the church shouldn’t sit on its checkbook for a decade before deciding it is time to tap into those funds.  We need to be rich in showing Christ’s love today. Be willing to tap into the funds for special needs. Don’t be unwise in spending but also don’t lock the money in a vault and throw away the key. I know of a church that closed its doors with over a million dollars in the accounts while sitting in a neighborhood desperate for someone to care for children. Plan for the long term while building for it today.  Money just sitting gathering dust (and, yes, interest) rubs many people the wrong way.  They want the church to be meeting needs…today!  Look at ways to build for the future while also providing for some distribution of funds today.  Perhaps a percentage is dispersed every year for particular causes or program areas while the rest is allowed to grow. Build into the endowment and/or designated fund documents a clause that gives the church, through the Board or some official group, the ability to reallocate funds designated for a purpose that is no longer what the church is going to do.  This may apply to funds left over after the new carpet was paid for or money that was given for a new mimeograph machine which was never purchased and now be absurd to buy.  This authority needs to be in official written documents and clearly communicated to donors at the time of the gift or before if at all possible. Don’t let endowments produce selfishness.  Sometimes these funds generate an attitude of “this is for our rainy day” with the emphasis on “our”.  Is it possible that some of the conflict over endowments is the message that they are all about us?  Would an endowment that has built into it an outward focus (providing funding for mission or service outside the congregation) help bridge the gap between those who don’t and those who do value them? Keep a list of all the things that the endowment has been used to provide and communicate this to the congregation.  This list can do several things including inspire people with the difference it has made, spur the church to use more of it if that list is very short, and identify areas of consistent need for focused programming by the church. Consider how much is enough.  What is the maximum that you will accumulate in the fund?  While is may be somewhat arbitrary it does set a ceiling and it forces the issue of thinking about what the purpose of the church is all about, building the kingdom and not just accumulating dollars. July 28, 2008