Congregational Planned Giving Program

1. Congregational Planned Giving Program

2. Introduction • $25-45 trillion in wealth will transfer between now and 2052 • Only 30% of Americans have developed an orderly plan for the transfer of their estates • Of this 30%, only one in three have remembered a charity in their estate plans • People of faith want to remember the Lord’s work in their estate plans, but need to know the options available to them

3. Introduction • The purpose of a congregational planned giving program is to . . . • Educate, • Encourage, • Enlist, and • Excite . . . members about using planned giving instruments to support WELS ministries.

4. Introduction • Manual focuses primarily on setting up an endowment fund • Also gives an overview of other ways members can make planned gifts • Coordination of these efforts at your church would be done through a Congregational Planned Giving Committee • WELS provides assistance

5. Scriptural Truths for Joyful Generosity 1. God owns it all. Psalm 24:1 2. By grace God supplies all our needs. Philippians 2:13 3. By grace God entrusts to us the task of management. Philippians 2:13 4. God desires our thankful response. Colossians 3:17 5. God determines that our offerings are an important way to express our thankfulness to him. 2 Corinthians 9:7

6. Table of Contents • About Congregational Endowment Funds • Setting Up a Congregational Planned Giving Committee • Promoting Planned Giving in Your Church • WELS Organizations that Can Help You

7. About Congregational Endowment Funds Definitions Purpose Why an Endowment? How an Endowment Fund Works Getting Started

8. Definitions • Endowment fund: dedicated fund of which only the growth can be used • Trust fund: same as endowment except that principal can be used at discretion of voters • Income: dividend or interest earned on an investment • Growth: capital appreciation or capital gain of an investment • Principle or Capital: The main body of a fund as distinguished from interest or profit

9. Purpose • Provides a permanent source of income to be used for a specific purpose. • Common uses: • Educational scholarships • Missions and outreach support • Supporting the ongoing ministry of the congregation Congregation in India

10. Why an Endowment? • Provides a framework for receiving gifts through bequests, memorials, and donations of assets • Reminder for members that wills and estate plans are part of Christian stewardship • Opportunity for members to make gifts without negatively impacting regular giving of the congregation

11. Why an Endowment? • Allows members to designate gifts to areas of special interest • Additional funding for current operations as well as future, expanded efforts • Allows establishment of new programs • Creates a source of future income for the congregation, assuring continued ministry

12. Family Assistance Community Outreach Children’s Special Needs Retirement How an Endowment Fund Works • Principal is invested and preserved • Part of income is spent on current needs • An endowment fund can have sub-funds to support multiple needs

13. Setting Up A Congregational Planned Giving Committee Flow Chart Building the Committee Special Issues Setting a Clear Purpose Commitment to the Program Consistent Communication Asking for Gifts Gift Administration Policies Distribution of Grants

14. Interested committee studies concept Study Group meets with a Christian giving counselor Study Group makes recommendations to Church Council Church Council brings resolution to voters Voters accept Voters/Church Council appoints Congregational Planned Giving Committee Committee organized and begins to educate, encourage, enlist, and excite Flow Chart

15. Committed to purpose Willing to work Communication skills Leadership skills Attention to detail Connections to members Opinion leader Women and men Many age groups Geographic areas Interest areas Income groups Other Building the Committee • First qualification is strong Christian faith • Decide what you are looking for

16. Special Issues • Should the Church Council also be the Planned Giving Committee? • Be careful about conflicts of interest. • Members/Terms • Size: three to five people • Term length: four years • Rotation: limit of two terms, terms should be staggered • A sample fund endowment fund bylaws is provided

17. Setting a Clear Purpose • Section I discussed possible purposes of an endowment fund • Congregation must retain ability to change the purposes of the fund • Exhibit A shows some sample sub-funds that can be set up with different purposes

18. Consistent Communication • First element: a clear, compelling identity • Second element: communication resources (promotional articles available online at Ministry of Christian Giving page on Connect) • Third element: a plan for using these resources over and over again • Sample one-year strategy available in manual

19. Identify prospective donors Prepare yourself Call to set up appointments Visit prospects Ask Follow up with materials and another visit Asking for Gifts

20. Gift Administration Policies • Most important aspects of gift administration: 1. Treat every donor with gratitude and respect 2. Agree on gift acceptance policies and apply standards consistently 3. Invest with WELS Investment Funds 4. Adopt appropriate policy on conflicts of interest • Exhibit B in manual provides sample gift acceptance policy.

21. Distribution of Grants Sample Distribution Policy (Section 7 of Bylaws): • Annually distribute 4% of the three-year (or since inception) rolling average market value of the fund as of June 30 • Limitations in place to insure the preservation of the historic dollar value of the fund

22. Promoting Planned Giving in Your Church Different Ways to Make Planned Gifts Estate Planning for Christian Stewards

23. Reference Materials in Manual: Committee can also provide members with basics on making planned gifts using . . . • Different Ways to Make Planned Gifts provides overview of different gifting vehicles • Estate Planning for Christian Stewards is a practical guide for developing a Christian estate plan

24. IV. WELS Organizations that Can Help You WELS Ministry of Christian Giving WELS Foundation WELS Investment Funds

25. WELS Ministry of Christian Giving A Christian giving counselor can help regarding the establishment of a Congregational Planned Giving Committee and an endowment fund.

26. WELS Foundation • Can assist the congregation in accepting complex gifts and gifts of unusual assets • Offers gift plans that allow the donor to remain anonymous and which can benefit a variety of WELS organizations, including the congregation • Manages the various gifting vehicles

27. WELS Investment Funds WELS Investment Funds can serve as the organization which invests the funds received. Working from a large base of assets and expertise, such an organization can invest more effectively for the very long-term.

28. For more information . . . Contact WELS Ministry of Christian Giving • Phone: 800-827-5482 or 414-256-3209 • Web: www.wels.net/christian-giving Thank you for considering a planned giving program for your church. May God use this as another means for sharing his Word with all people!