Presbyterian Church of the Way Endowment Fund
The purpose of the Endowment Fund is to provide a stewardship opportunity for members and friends of Presbyterian Church of the Way to donate assets as a lasting legacy of their faith in Jesus Christ.
Learn more about the endowment fund, how to donate assets to the fund, how to request grants in support of our church and its mission, and a brief history of the fund.
- Administration of the Endowment Fund
Who manages the endowment fund? What documents define and describe the endowment fund? Where is the fund invested?
- Donating Assets to the Fund
Can donations be made while one is still alive? Can donations be made later as part of one's estate? Can donations be made in the name of another person? Can the donor designate how the gift will be used?
What type of gifts can be made while one is still alive? How can one donate assets as part of one's estate? What are the tax implications?
- Requesting Grants
When are grants awarded? Who can request grants? How can one request a grant? Are there forms that must be filled out? Is there a deadline? Does one need the support of a church commission or committee? What activities qualify for a grant? Who decides which requests will be granted?
- History of the Fund
When was the endowment fund established? How large is the fund? What grants have been awarded?
Administration of the Endowment Fund
Responsibility for administration of the endowment fund is vested in the Planned Giving Committee consisting of three members elected by the congregation and one elder appointed by the session. Please contact the church office for a list of the current members? The church treasurer is an ex-officio, non-voting member.
The endowment fund and its administration are described in the endowment fund Charter approved by the congregation and the endowment fund Guidelines approved by the session. For more information, click on Charter and Guidelines.
Endowment fund assets are currently invested in a combination of three funds:
- New Covenant Growth Fund.
- New Covenant Balanced Growth Fund.
- New Covenant Treasury Money Market Fund.
The New Covenant Funds are socially responsible mutual funds associated with the Presbyterian Church (USA). For more information, click on New Covenant Funds.
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Donating Assets to the Fund
Donations may be made directly to the endowment fund at any time or deferred to a later time using one or more options available through estate planning. The donations may be made in the donor's name or in memory of a loved one. In any case, the gifts serve as a lasting legacy of the donor or designated loved one.
Donors should inform the church of their current or future gift to the endowment fund using a voluntary, non-binding statement of current or intended contribution. The statement is used to describe how the gift is to be used and whether or not the name of the donor is to be kept confidential.
Click on Statement of Current or Intended Endowment Fund Contribution to down-load a copy of the one-page form or pick up a copy from the rack outside the church office.
Current gifts, as opposed to deferred gifts, may include cash, appreciated securities, and real estate. Current gifts are tax deductible subject to the IRS ceiling on charitable contributions.
Future or deferred gifts are usually defined as part of an estate plan. Donors can choose from among a number of estate planning options. As estate tax rules are complex and subject to change, donors should consult with a financial advisor, lawyer, and/or tax advisor. Some estate planning options are described below. Addition options are described on the Presbyterian Foundation website (see Ways to Give).
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Cash
Gifts of cash may be made directly to the endowment fund by placing cash or a check in the offering plate on Sunday or by mailing a check to the church office.
Please place cash in an envelope marked For Endowment Fund with the donor's name and address. For checks, please write Endowment Fund on the memo line. A thank you letter will be sent to the donor acknowledging the gift.
Cash gifts are tax deductible.
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Appreciated Securities
Gifts of securities may be made to the endowment fund by electronic transfer to a church account or using paper stock certificates. The preferred method is direct transfer to the church's Charles Schwab account. Please inform the Financial Secretary that the gift is for the endowment fund. The Financial Secretary can also assist the donor with the transfer process. A thank you letter will be sent to the donor acknowledging the gift.
Gifts of appreciated securities are tax deductible and there is no capital gains tax. The full-market value may be deducted on long-term appreciated securities.
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Real Estate
Gifts of real property may be made to the endowment fund. Please contact the Planned Giving Committee before initiating transfer of title to ensure the gift will be accepted (generally gifts that can be quickly sold will be accepted).
Gifts of real estate are tax deductible and there is no capital gains tax.
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Bequests (via Will or Living Trust)
Donors may bequeath assets (money, securities, or other property) to the church through their will or through their living trust. Such gifts are revocable prior to death and are tax deductible at time of death. A thank you letter will be sent acknowledging the gift following receipt of the donor's letter of intent.
Donors may direct their attorney to add the following or similar statement in their will: I/we give (identify the property or amount of the gift) to Presbyterian Church of the Way, 3382 Lexington Avenue North, Shoreview, MN 55126.
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Retirement Plans
Donors may make future gifts of IRA accounts and other qualified retirement plans by naming Presbyterian Church of the Way as the primary or contingent beneficiary. Naming the church as a beneficiary is as easy as submitting the appropriate beneficiary forms to the plan administrator. A thank you letter will be sent acknowledging the future gift following receipt of the donor's letter of intent.
Such gifts are revocable prior to death and are fully tax deductible at time of death.
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Life Insurance Policies
Two options are available to donors wishing to make future gifts of life insurance policy proceeds.
Donors may name Presbyterian Church of the Way as the primary or contingent beneficiary of a new or existing policy. Naming the church as a beneficiary is as easy as submitting the appropriate beneficiary forms to the insurance company. A thank you letter will be sent acknowledging the future gift following receipt of the donor's letter of intent. Such gifts are revocable prior to death and are tax deductible at time of death.
Donors may also assign ownership of a new or existing policy to the church by gifting the policy to the church with the church as the primary beneficiary. If so, the donor continues to pay any premiums which are tax deductible in the year they are paid. Moreover, as the church owns the policy, the gift is irrevocable and the proceeds are not included in the donor's estate. A thank you letter will be sent acknowledging the gift following receipt of the donor's letter of intent.
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Charitable Gift Annuities
Donors may donate gifts to the church by establishing a charitable gift annuity.
Charitable gift annuities are irrevocable gifts that return periodic income for life with the remaining balance at death going to the endowment fund. There is an immediate tax benefit to the donor and a portion of the periodic income will be tax free. A thank you letter will be sent acknowledging the gift following receipt of the donor's letter of intent.
Charitable gift annuities may be established with the Presbyterian Foundation or with other financial institutions. More information is available on the foundation's website.
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Charitable Remainder Trusts
Donors may donate gifts to the church by establishing a charitable remainder trust. Charitable remainder trusts are similar to charitable gift annuities in the sense that they are irrevocable gifts that return periodic income for life with the remaining balance at death going to the endowment fund.
Charitable remainder trusts may be established with the Presbyterian Foundation or with other financial institutions. More information is available on the foundation's website.
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Requesting Grants
Grants are awarded during the fourth quarter of each year unless an economic downturn suggests awards should be temporarily suspended. The total dollars to be awarded in a given year (or the temporary suspension of the awards) will be announced early in the year at the annual congregational meeting.
Requests for grants or disbursement of endowment funds may be submitted by individual members of the congregation or by commissions, committees, or other groups of members of the congregation.
Requests for grants should be submitted to the church treasurer using a Grant Application Form. Each request should include a specific description of how the requested funds will be used.
Requestors are responsible for developing their ideas and transforming them into viable requests. Requests that are simply ideas or suggestions will be returned and/or forwarded to the appropriate commission or committee for completion.
Click on Grant Application Form to down-load a copy of the form or pick up a copy from the rack outside the church office. Please use a separate form for each request.
The deadline for submitting requests is July 31st.
Requests for grants should have the support or sponsorship of a commission or committee of the church. When a grant is awarded, the sponsoring commission or committee will be accountable for execution of the grant.
The fund is not intended to be used for on-going operational expenses, but may be used for new operating initiatives, mission programs, and the purchase of new capital equipment.
The Planned Giving Committee is responsible for reviewing all disbursement requests, selecting those requests to be awarded, and obtaining the concurrence of the session.
Awards will be announced by the Planned Giving Committee during the fourth quarter and the funds will be available at the time of announcement.
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History of the Fund
The endowment fund was established in 1997 following congregational approval of the charter. The fund languished until early 2006 when a revised charter was approved. Later, that same year, the fund received a substantial gift enabling the first grants to be awarded in November, 2007.
The current fund assets exceed $200,000. The year-end balance is published in the financial section of the Annual Report distributed to church members and in the monthly financial reports distributed to the session and available to other members on request.
Two grants were awarded in 2007. One grant, for $3,700, was awarded to the Worship Commission to purchase and install a bass speaker for the sanctuary organ. The second grant, for $2,600, was awarded to the Christian Education Commission to help furnish the three lower-level classrooms collectively referred to as the youth corner.
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