Endowment Fund - Lutheran Church of the Cross
Questions and Answers
What is an Endowment Fund and how does it work?
An endowment fund is a fund where a member, during their lifetime or after their death, may donate money or property to be held by the fund in perpetuity. The fund is designed to invest principal donations and pay out annual income for purposes designated by the donor or the committee. Only the income is spent unless the donor specifies that principal can be spent and for what purpose.
Objectives
The primary intent of the Endowment Fund is to support the congregation's work in four areas:
- capital needs
- scholarship needs of its students enrolled in seminary and postsecondary education
- specific programmatic ministries, at the request of the donor
- benevolent ministries in the greater Church and community.
Why make an Endowment Fund contribution instead of an outright gift?
An endowment gift will continue to benefit the church and its ministries over the life of the fund. An outright gift, such as a memorial, is received and distributed in its entirety for the purpose designated or specific project (often used once for a single purpose). Since the income only is spent on a designated purpose, endowment gifts tend to be larger bequests or a series of gifts designed to build up an endowment.
How do I give a gift and what kinds of gifts can I give?
There are many ways to give a gift. Cash contributions of any size are welcome. Larger gifts could hold special income tax advantages to the donor as well as enhance the mission of our church; such gifts could include cash, appreciated assets (stocks, real estate), bequests from your estate (specific gifts, percentage of or share of estate, income or principal from residue), life insurance, trusts, annuities, etc.
I appreciate that the congregation gratefully receives and acknowledges gifts. But what if I want to donate anonymously?
Each gift to the Fund honors God and expresses the donor's love, loyalty and concern for God's work through our church. Gifts may be mailed anonymously.
Who decides how my contribution will be used?
The Fund receives principal gifts of cash, securities or property from living donors, or though bequests in estate planning instruments, or as the beneficiary of a trust fund, life insurance policy or annuity. These gifts are to be used for congregational purposes consistent with the goals of the Fund. The donor determines how they want their gift to be used. The goals of the Fund suggest four possible areas where gifts can be designated. The Fund supports areas of need not necessarily in the budget.
Is there a minimum amount for a gift? Can I make arrangements for an annual gift?
There is no minimum amount for a gift. You may make arrangements with the Foundation for an annual gift. You may give as often as you like, including directly to the Foundation for the Endowment Fund of Lutheran Church of the Cross.
Lutheran Church of the Cross
On Hiway 13 just east of Hiway 371 at Sportland Corner
P.O. Box 29
Nisswa, MN 56468
Phone: 218/963-2564 Fax: 218/963-0294
Email: lcc@lccnisswa.org