Chapel Endowment FAQs

Why Have an Endowment?

Currently St. Paul’s Lutheran Chapel and University Center is funded almost entirely through the Iowa District East, which is our local district of the Lutheran Church—Missouri Synod. The district is extremely generous with St. Paul’s, but even they cannot meet the increasing needs associated with an aging facility and a growing outreach program. This endowment will provide funds needed for continued growth and expansion as well protect St. Paul’s in case of unplanned financial set-backs.

How will the endowment be used?

The funds for the endowment will be used to:

• Fund new outreach programs
• Provide for necessary repairs and improvements to the facility
• Fund a building addition which will provide much-needed meeting space.

Will the endowment be used for operating expenses at the Chapel?

The answer to this is no, so long as the Chapel remains a subsidized ministry of the Iowa District East, and the subsidy is sufficient to meet the Chapel budget. There are some special exceptions, such as the start-up of a new program or outreach which is not funded currently by the budget but would be in upcoming years. Endowment funds can be used on a proportionally decreasing basis to begin this type of program.

How is the endowment different from the Alumni Fund?

The Alumni Fund is a savings account at a local bank. This money is readily available to the Chapel Board of Directors for emergency use and for alumni activities.

The endowment is a long-term investment utilizing the services of a brokerage house. The endowment currently has a moderately conservative growth profile, investing in a mix of bond funds and stock funds. Principle is not spent; the interest it generates becomes a source of revenue for uses as outlined in the bylaws.

Who governs the endowment fund and its usage?

The endowment is protected by bylaws. Decisions on endowment funds usage will be on recommendation of the Board of Directors of St. Paul’s Lutheran Chapel with approval by a simple majority of the Board of Directors of Iowa District East.

How are donations received?

Monetary donations labeled “St. Paul’s Endowment” may be sent directly to the chapel. The monies from direct donations will be immediately invested.

Stocks, bonds, real estate, and other items for which the donor does not want to pay capital gains tax may be donated to the endowment in their current form. They will be sold and the funds added to the endowment. The donor receives the full market value as a tax deduction.

Deferred gifting is one of the primary ways the St. Paul's Lutheran Chapel endowment will be funded. Deferred gifting options are numerous and include the following:

• Adding the Chapel as a beneficiary to a list insurance policy or leaving a bequest to St. Paul's in a will or estate plan.
• Create a Charitable remainder Trust. This type of trust offers a way to donate property and continue to receive an income during your lifetime.
• Create a Wealth Replacement Trust. This type of trust, in conjunction with a Charitable Remainder Trust, has many advantages, including providing for beneficiaries while avoiding capital gains on appreciated assets.
• Create a Charitable Lead Trust. This trust lets you donate the income from a gift while retaining ownership of the principal.

For information on trusts, foundations, pooled income funds, insurance beneficiaries, and many more possibilities, please visit the Thrivent Financial website or consult a trusted financial representative in your area.

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