Endowment funds: Giving for the future
Jimmy Moore has discovered a recurring theme when building relationships with churches and nonprofit organizations.
“I learned that many of them have money designated for a parking lot or a building project, but it’s just sitting in a checking account,” he says. “They don’t know there are better alternatives for those funds.” It gives Jimmy an opportunity to introduce them to organizational endowments through Thrivent Charitable.
A Thrivent financial associate for seven years, Jimmy offered financial workshops at a large Assemblies of God congregation in his community when he learned of a couple that wanted to donate funds to the church over time.
He says, “An endowment contract can help satisfy what donors want and serve the needs of the church. The couple started the endowment with a tax-efficient gift, but it’s open to anyone who wants to give with a link on the church website.”
Once the endowment was established, the church invited Jimmy to speak to members and explain how they can get involved. “Donors who attend those sessions usually have assets and generous hearts,” he says. “What a great way to build a practice.”
Churches and faith-based nonprofits can create an endowment fund into which both the organization and its supporters can direct gifts. The organization may then request distributions, directing grant dollars to the programs it designates. Thrivent Charitable administers the endowment fund, which includes accounting, investment and reporting responsibilities.
“People tend to give more to an endowment fund because they are giving for the future and not just toward monthly expenses. It’s an easy conversation to have with pastors or the board of organizations,” he notes. Donors can give a wide range of assets, including cash, property, appreciated securities and farmland or crops.
Jimmy also partnered with Thrivent Charitable on an endowment fund for a small nonprofit that feeds and educates children in the Dominican Republic. Crossover Cups Mission also had money set aside in a checking account. The director of the nonprofit has serious health issues and wanted a plan to ensure that the ministry will not be at risk if he suddenly passes away.
“The true benefit to me is knowing that the Lord is using me to help sustain these ministries long into the future,” Jimmy says.
Contact our team of gift planners to discuss charitable solutions such as organizational endowments. Email us or call 800-365-4172 to get started.