Over the course of fifteen years, an endowment with initial balance of $50,000 could generate an additional $88,000 in funding for ministry.*
First United Methodist Church of Dade City recognizes this kind of potential. That’s why they established the My Legacy Endowment Fund, in partnership with the Florida United Methodist Foundation, to make gifts to their church go further.
An endowment is a permanent fund invested in securities such as stocks and bonds to provide income for your church in perpetuity by generating income on interest without depleting the principle.
Endowment funds, which are eligible to be administered by the Florida United Methodist Foundation via its FUMF Funds for churches, accepts a variety of gifts from church members looking to make a difference.
A church endowments can be funded by gifts from your church members such as:
- Insurance policies
- Publicly traded securities
- Money from a 401(k) or IRA.
Benefits from endowments are numerous, including:
- Funding in perpetuity
- Possible tax benefits for givers
- Enabling the funding of special projects like mission work, church scholarships and capital improvements
The Foundation is available to administer endowments for your church while giving investing options for churches that match your church’s goals and level of risk tolerance.
Range from most conservative to most aggressive, the current FUMF Funds include the balance growth fund, aggressive growth and long-term fund.
*This illustration assumes a return of 7% compounded annually, with no deposits or withdrawals to the principle.