Build a Bridge to the Future
The Church of the Nazarene Foundation provides information and personal assistance to those who want to make the best use of what God has given them, both in providing for their own family, as well as supporting the work of the church. Also, they come alongside churches and ministries to provide gift-planning support.
What is an endowment?
An endowment is a gift that keeps on giving. Funds are deposited with the Church of the Nazarene Foundation, and each year a portion of the income, as determined by the donor, is distributed in the donor's name to the ministry of the donor's choice. Typically, an endowment might provide an annual distribution of 5 percent.
Who can create an endowment?
Anyone with a passion for a ministry and a gift to give may start an endowment fund. The gift may be cash, stock, real estate, or any marketable item of value. Donating appreciated stock to an endowment fund can have a significant advantage in avoiding unnecessary taxes.
How can an endowment serve to help the mission of the church around the world? How about stories from real life?
- A generous couple had a heart for a specific Nazarene mission field. The Lord had blessed them with a home that they no longer needed. They started an endowment and donated their home to it. Now, every year there is a sizable check issued to Global Mission designated to their beloved mission field.
- An elderly widow, zealous for her local church, was concerned that when she died, her local church would no longer receive her tithe. Upon establishing an endowment fund to benefit her local church, she made a single contribution to the endowment that will assure her church an amount equivalent to her tithe for at least 20 years past her death.
- A Christian who faithfully sends a monthly check to Nazarene Compassionate Ministries for child sponsorship learned that an endowment could be established to sponsor his child, even if he were unable. For only $8,000 USD an endowment was created to sponsor child after child perpetually.
How can this help a local church?
Local churches with long-term vision recognize the wisdom of endowments. Much like the Lord's instruction to Joseph in Genesis 41 to utilize the seven years of plenty to prepare for the seven years of famine, wise churches prepare for the reality that economics, culture, neighborhoods, and needs will continue to change until Jesus returns. If a local church establishes an endowment fund and adds a small percentage of its income, even one or two percent, it can make a significant difference in ministry.
Why an endowment, why not just give whatever one can give, now?
An endowment allows the donor the privilege of blessing a favored ministry with a continuous gift rather than with a single windfall. While both are genuine blessings, some ministries benefit more in the long run through a continuous gift. For example, if someone has a heart for youth ministry and the ability to give a significant gift, it may be of greater benefit to the church to receive an endowment distribution for the next 100 years than to have a single immediate gift. It simply gives the donor flexibility.
Does an endowment have to be a really large gift?
Endowments may be started with relatively small initial deposits. Once the endowment is established, gifts of any size or from any donor, may be added to the endowment.
Is it complicated?
Creating an endowment is no more difficult than opening a savings account at a bank. It simply takes an initial deposit and some basic paperwork.
Where does someone start this giving process?
The Church of the Nazarene Foundation offers turnkey endowment services to individuals as well as local churches. Contact us at:
Web: nazarenefoundation.org
Email: info@nazarenefoundation.org
Phone: 1-866-273-2549
Holiness Today, January/February 2014
Please note: This article was originally published in 2014. All facts, figures, and titles were accurate to the best of our knowledge at that time but may have since changed.
