How Endowments and Planned Gifts Can Support Your Congregation’s Vision And ministries of CDP!

1. How Endowments and Planned Gifts Can Support Your Congregation’s Vision And ministries of CDP!

2. Why Planned Giving? • Inter-generational transfer of wealth between 1998-2052 will be $41 trillion with $6 trillion to not-for-profits through planned giving • These gifts can provide a means to support ministry, practice stewardship, and help individuals with make a difference! • Foundations are benefiting other faith communions • Mennonites ~$2.5 billion … $35 million to ministry • Church of the Brethren ~$125 million … $4 million to ministry • Wesleyans ~$60 million equity … $3 million to ministry • Endowments are a wonderful way to make a lasting difference in your own church.

3. What is an Endowment? In general terms, an Endowment is a perpetual fund whose income is used for ministry. Generally donors who make planned gifts… Want to make a difference To know it’s a lasting difference Have great joy in giving! Endowments are a great way to help donors make a lasting difference!

4. Who decides where the income is spent? • The Endowment is owned by the local church. The church makes important decisions: • Determine the purpose of the endowment • How is the money spent? • How are decisions made? • What are the guidelines and polices that give structure? • Decide which of the five investment options are best. • Along the way the Church of God Foundation gives insight and guidance, help with documents, reports, and legal issues; but the key decisions belong to the church.

5. HOW DOES IT WORK? Example: Your church is named as beneficiary in a Will, Trust, Insurance policy, or IRA and • Receives $200,000 gift from an estate and church has a permanent endowment the gift is placed into • Assume 5% distribution rate/year • The yield is $10,000 in additional resources annually • At this rate of return and distribution, the endowment should continue to grow • Funds are provided for ministry perpetually. Supporting the ministry in perpetuity

6. Your church decides the ministries you wish to fund! Examples from other endowments: Support an older adult staff minister Youth and children ministries Scholarships for college Support community ministries and outreach Funds for building upkeep and maintenance Missions trips and training

7. Where do funds come from? • The Church of God Foundation has resources, materials, training, and seminars to help educate and inspire individuals to make a difference. • There are many ways in which the endowment can be funded. Just a few include: • Estate gifts • Stocks and securities • From life insurance • From IRA’s • Property • And many other ways!

8. Who manages our local church endowment? • Your church owns the endowment and decides upon its use, policies, and investment options. • The Foundation helps you write a document where you define use, policies, and procedure. This is called a Charter. • The church chooses the investment option that is right for your endowment through a Risk Assessment • There are five (5) different mixes of investments to choose from • The Foundation manages endowments, helps meet legal regiments, files government forms and provides support services.

9. Where is the Endowment Money Invested? • The Foundation has invested its funds with the well-known Christian investment firm of Ronald Blue and Company of Atlanta, GA. The same firm used by the Board of Pensions • Ronald Blue and Company has been investing for over 29 years and has 5,000 clients with over $4 billion dollars of assets under management in a variety of investment funds. Administrative Costs?* • 1% for endowments per year • Charitable Gift Annuities – 10% of residuum to Foundation • *Talk to the Foundation about specific details.

10. Foundation Services Offered • Consult and support in writing your church vision, guidelines, and policies • Meeting with your leadership about principles of stewardship, and the relational donor cycle • Estate and planned giving seminars • Development of an intentional whole life philosophy of stewardship for your church

11. Foundation Services Offered • Individual Consultation • Printed materials for planned and estate gifts • Samples of fundraising letters and materials • Resources for individual family financial health • Stewardship Weekends

12. The Foundation supports ministries • The Church of God Foundation returned $60,000 to support in 2010 • Aid to retired ministers • Scholarships for CHOG students to CHOG colleges • Church Multiplication and growth Through the Church of God Foundation you extend your ministry to help others in the Church of God.

13. We suggest the following action steps: Discuss the Foundation with your leadership – they will have positive comments and concerns. Invite the Foundation to do a short introductory seminar: We will come and meet with your church leaders for a presentation. Or we can do the presentation over the internet if you have connection and a digital projector. Typically the seminar takes less than 30 minutes before your questions.

14. We suggest the following action steps: Decide to proceed. You define the purpose of the endowment and what ministries the funds will support. We will consult in a ‘Charter Agreement” which is your own church guidelines governing the endowment. We will offer to consult and supply services in training and presenting the endowment to the church.

15. The Foundation can help your congregation to invite individuals to leave a lasting legacy to support the ministries they love!

16. For More Information: • Visit www.ChoGFoundation.org • Donor Stories as examples • Gift planning calculator • Professional Advisor section • Free weekly E-newsletters • Savvy Seniors • Donor Stories • Washington Update • Financial Update • Call Toll Free 877-549-4438 • Email info@chogfoundation.org Church of God Foundation PO Box 2420 Anderson, IN 46018-2420

17. Questions? Talk to us directly! We can be reached at: 877-549-4438, Foundation Toll Free Hot Line. Staff can be reached at: 800-848-2464 or email us: Kirk Bookout kbookout@chog.org Dewayne Repass drepass@chog.org

18. Disclaimer: • These slides were for educational and informational purposes only. For specifics in your own situation talk with us at the Church of God Foundation. Healthy churches reaching out through strong ministries can have a perpetual income stream. Let us help.