Church Loans
Churches should download a loan application and contact Andy Craske, the foundation’s vice president of loans and investments, at acraske@fumf.org or 866-363-9673, ext. 2104, for guidance through the loan process. Churches must also contact their district superintendent to share their plans and schedule a charge conference. In addition to completing the application, three years of financial records must be submitted. More information is available in the loan policies.
There are no fees from the foundation, but there will be documentation costs to record the loan. It is similar to recording a mortgage loan.
While typically written for 15 to 20 years, the average life of a loan in the portfolio is between seven to eight years. There is no prepayment penalty.
The foundation’s finance committee reviews the loan and deposit interest rates quarterly and makes a recommendation to the board of directors. The goal is to keep the loan rate below the prevailing market rates. We also work to maintain a 2 percent spread between the loan rate and the payment to depositors. Typically, the amount paid on deposits is higher than the prevailing market rate.
The Foundation offers competitive interest rates. It is also connectional. When you invest in the Development Fund, you are assisting churches and ministries conference-wide with their expansion, maintenance and renovation needs. You might also be helping build a church in an area that is not currently being served. Because we charge less for our loans and pay a higher rate of return on our Development Fund accounts, your investment in the fund enables you to do well financially, while also doing good.
Our loans are most often related to capital expenses. Churches and ministries tend to borrow for new construction, additions and expansions, repairs, maintenance, renovations, and new equipment and vehicles. They also use Development Fund loans to refinance existing loans with other institutions at a lower rate, thereby practicing good stewardship.
Monday through Friday.
You can send a check to the foundation or pay online once you have enabled online access. Online payment includes single and reoccurring payment options.
You will receive a monthly statement by mail or, if requested, an email notification informing you that your statement is available online. Statements show your previous balance, payments made since the last statement and your account balance as of the statement date. You may view your account balance online and schedule automatic payments once you have enabled online access.
Development Fund Accounts
You may deposit funds by completing a deposit form. You may also make your deposits online via credit card or withdrawal from a bank account. Both options are available through the online deposit form. For withdrawals, you may complete a withdrawal form or provide a letter requesting the transaction. In the letter, please include the account name and number and amount to be withdrawn. Any requests must include the signatures of all individuals designated as authorized signers for the account. Forms and letters may be mailed to the foundation’s offices at 450 Martin L King Jr Avenue, Lakeland, FL 33815; emailed to foundation@fumf.org; or faxed to 863-904-0169.
Please notify the foundation that your address has changed by submitting a change of address form.
You will receive a quarterly statement showing your previous statement balance, any transactions made and interest paid since the last statement, and your account balance as of the statement date. You may also view your account balance online once you have enabled online access. You will be able to view your account only. You cannot make deposits or withdrawals.
It typically takes two business days from the time a withdrawal request is received to process the request. When you receive the payment depends upon the method of delivery you have chosen, either via check mailed to you or direct deposit into a specified account. Mail delivery rates vary.
You may withdraw from your investment at any time. There is never a penalty, fee or loss of interest when withdrawing funds. There is no minimum length of time required for investments to remain in your account, and interest is earned from the day of deposit to the day of withdrawal. Deposit and withdrawal forms.
Interest paid on the fund is taxable as income by the federal government. The interest paid to you each year will be reported on form 1099-INT. Investments in the fund are exempt from Florida’s intangible tax.
Yes, as long as you are willing to serve as custodian.
No, there are no fees, charges or penalties for investing in or withdrawing from the fund.
Interest is earned from the day of deposit to the day of withdrawal and is paid quarterly. Account holders residing in Florida may reinvest any quarterly interest earned into their Development Fund accounts or receive payment via direct deposit into a personal savings or checking account. Payments may also be paid by check when the amount is more than $25. Amounts less than $25 will automatically be reinvested in the Development Fund account. Because new deposits, including interest earned, are prohibited for accounts held by out-of-state residents, quarterly interest below $25 will automatically be reinvested. Any interest greater than $25 will be paid out by check or direct deposit into the account holder’s savings or checking account. All account holders may withdraw their investment at any time and receive all interest earned to date.
$100
Any Florida resident or organization located in Florida may open a Development Fund account by completing an application, which includes the foundation’s annual financial statements, an offering circular describing the fund and its management policies, and a form depositors may complete to enable direct deposit of interest payments and withdrawals into a specified account. Interest earned can be reinvested in an individual’s Development Fund account or paid to the account holder via direct deposit or check. The foundation will open the account within two business days after receiving an application. You may begin the process of opening an account online or by contacting us at foundation@fumf.org or 866-363-9673.
Interest rates are reviewed quarterly by the foundation’s finance committee and board of directors and adjusted based on market conditions.
Florida residents and any church, organization or business located in Florida may open a Development Fund account. Applications of non-Florida residents who are members of, contributors to or supporters of United Methodist-affiliated churches, ministries, agencies and institutions are decided on a case-by-case basis.
The Development Fund accepts investments from any Florida resident, church, organization or business. It pays these investors a set rate of interest and uses their deposits to make loans to Florida United Methodist churches, agencies, missions and ministries. The interest paid to investors is usually as high as or higher than available with a similar investment in a commercial bank or money market account. The interest paid by churches and agencies borrowing money is usually as low as or lower than would be charged by commercial lenders. Since the fund is a nonprofit entity, the goal is not to make money from this transaction, but rather to bring investors and borrowers together in the most efficient and effective way to do God’s work through ministries in Florida.
Endowments
An endowment is a fund established to support a nonprofit organization in perpetuity or for a defined period of time.The fund’s principal — usually created by charitable gifts and donations — must remain intact and invested to create a source of income that continues to support the organization.
An endowment fund enables members and prospective donors to make a legacy gift to the church that will support the church’s mission and ministries beyond the donor’s lifetime. Gifts to an endowment fund may be made through bequests, trusts, living wills and other planned gifts that are typically arranged as one-time gifts. Churches, like other nonprofits, can secure the future of their ministries through an active endowment program.
Planned giving usually increases the number and types of gifts to a church or other charitable organization. Unlike annual giving, planned gifts are usually funded by the donor’s assets rather than current income. Most donors will pledge to the church’s annual stewardship campaign and also provide for the church through a will, charitable gift annuity or other planned giving tool.
Foundation staff will meet with finance or endowment committees to walk them through the process of establishing an endowment program. The Foundation has a planned giving handbook that outlines the process. Foundation staff members are also available to present workshops on wills, planned giving, end-of-life planning and other subjects that may be of interest to church members and prospective donors.
Churches may invest their endowment funds in any of the Foundation’s three managed investment funds (FUMF Funds). The funds meet diverse investment goals depending on risk tolerance, time horizon and other factors. The funds are socially driven, and performance is reported monthly. Access to performance reports is available online. Foundation funds are audited annually. Audited financial statements and the Foundation’s annual tax return are available upon request.
The foundation offers a recognition program called The Mustard Seed Society and will consult with endowment committees on ways to market the endowment and planned giving programs. The foundation website includes multiple resources, such as a gift calculator, donor stories, information on types of planned gifts and more.
Investment Funds (FUMF Funds Accounts)
You may deposit funds by completing a deposit form. For withdrawals, you may complete a withdrawal form or provide a letter requesting the transaction. In the letter, please include the account name and number and amount to be withdrawn. Any requests must include the signatures of all individuals designated as authorized signers for the account. Forms and letters may be mailed to the foundation’s offices at 450 Martin L King Jr Avenue, Lakeland, FL 33815; emailed to foundation@fumf.org; or faxed to 863-904-0169.
The foundation offers three managed funds: balanced growth, aggressive growth and long-term fund. Churches may select one or more funds based on their investment objectives, risk tolerance and time horizons.
Any Florida United Methodist church or related agency or ministry may invest in the foundation’s managed investment accounts. The first step is to request an application, which includes the foundation’s annual financial statements and an offering circular describing the funds and their management policies. You may request those documents online or by contacting us at foundation@fumf.org or 866-363-9673. Once we learn of your interest in establishing an investment account, a member of our staff will contact you to talk about your specific needs. In most instances, staff members will visit with you and members of your endowment or finance committee.
Yes. Many churches and agencies have sub-accounts that are designated for different purposes, such as scholarships, music, maintenance reserve funds, or separate ministries and missions. These sub-accounts can have different asset allocations and/or designated signers. A separate application must be completed for each account.
Yes. A minimum of $5,000 is required to open an investment fund account.
The foundation’s investment policy states we have up to 45 days to honor a withdrawal request. However, if a church withdraws less than 50 percent of the prior month’s fair market value of their funds, the monies are sent within three business days. If the church withdraws more than 50 percent of the fair market value or closes the account, the foundation sends half of the withdrawal amount within three business days and the balance after the end-of-month settlement. Withdrawals are sent electronically to the specified account.
Earnings are reported monthly. You may access your statement online.
The fees charged are based on several factors and differ depending on the fund in which you are invested. Mutual funds generally take their fees from net income prior to paying investors. Additionally, some mutual funds charge their fees monthly, while others do so quarterly. Once the results are sent to the foundation, an administrative fee is calculated based on the fair market value of the fund’s preceding quarter valuation. This administrative fee represents fees paid to a custodian and our investment consultant, who provides high quality advice. It also includes fees to recover operating expenses for accounting, legal and professional fees and commissions paid by the foundation for trades and record-keeping services. This all-inclusive administrative fee will be charged directly to and paid out of the assets of the common funds referred to as the FUMF Funds on a quarterly basis. The foundation regularly monitors the fees it collects to ensure they are competitive and the client is receiving appropriate value for the fee being charged.
Asset allocations can be changed at any time with written notification to the foundation. Transactions and calculations are made at the end of the month.
Funds are audited annually. Audited financial statements and the foundation’s annual tax return are available upon request.
You will receive a quarterly statement showing your previous statement balance, any transactions made, interest paid since the last statement, gains and losses, unrealized gains and losses, fees, and your account balance as of the statement date on both a cost and fair market basis. You may also view your account balance online once you have enabled online access. You will be able to view your account only. You cannot make deposits or withdrawals.
Planned Giving
Planned giving is a method of supporting charities that enables donors to make larger gifts than they could make from their income. Planned gifts are typically funded from the donor’s accumulated assets, rather than from his or her discretionary income. Some methods of planned giving offer benefits to both the donor and recipient.
There are outright gifts, such as gifts of cash or appreciated assets that are sometimes used as a substitute for cash. There are deferred gifts, such as bequests made in a will or living trust, that are payable upon the donor’s death. There are life income arrangements, such as charitable gift annuities and charitable trusts, which return income or other financial benefits to the donor in return for the contribution.
The Foundation accepts charitable gift annuities, charitable trusts, donor advised funds, bequests and other types of planned gifts in which at least 40 percent of the gift will benefit a United Methodist church, agency, or related institution or ministry.
The donor receives a tax deduction for the full fair market value of the assets contributed at the time the gift is made. The donor receives income throughout his or her lifetime. Some of the income received through the annuity payments to the donor is tax-exempt.
Foundation staff will meet privately and free of charge with prospective donors to consult with them about gifts to be designated for United Methodist churches or related charities. The foundation forms a contract with the donor and provides custodial, trustee and accounting services. Foundation funds are audited annually.
Scholarships
The Foundation offers the Sinclair Scholarship to students entering their first year of college at a Florida or United Methodist college or university.
Applications are accepted Jan. 15-March 15. Awards are announced in April or early May. Application forms and other resources are also available.
Please include a one-page essay about yourself, your church and community activities, and your future plans. Please include three letters of recommendation, at least one of which should be from your pastor or youth director. Please also submit an official transcript showing the courses you have taken and your grade point average. Application and instructions.
Member of the foundation’s advancement and grants committee read and review applications and select scholarship recipients.
As long as you remain a student in good standing, the scholarship will continue until graduation.
The scholarships are intended to help cover tuition and fees. Once we receive your verification of enrollment form, a check will be sent directly to the school you are attending. Scholarship payments are made for fall and spring semesters only.