Endowment FAQ's

St. Paul’s Lutheran Chapel

Endowment

Building the Future Together

Endowment FAQ's

What is an endowment?

The technical definition of an endowment is “funds or property donated to an institution, individual, or group as a source of income.” For St. Paul’s Lutheran Chapel, the endowment is a method by which we can raise needed funds for specific goals.

What are the goals of the St. Paul’s Lutheran Chapel endowment?

The funds for the endowment will be used to provide for continued growth and expansion as well as protect the chapel in case of unplanned financial set-backs.

Some goals for the endowment include:

Funding new outreach programs before they become part of the operating budget;
Completing necessary repairs and improvements to the facility;
Funding 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?

Currently the alumni fund is strictly a savings account for the chapel. It is earning only 1-2% interest at a local bank. This money is readily available for emergency use. It is also used to fund alumni activities. The account will remain, but with an upper limit. Once that limit is reached, surplus funds will be sent to the endowment where they can maximize their earning potential.

Why is St. Paul’s starting an endowment now?

Endowments have been utilized by LCMS churches, schools, and ministries for many years. Starting them can involve capital, which may cause some ministries to hesitate creating an endowment. Through a Charitable Gifting Initiatives grant from Thrivent Financial for Lutherans, the costs associated with the launch of the endowment have been covered. It was an opportune time to begin the process.

Who governs the endowment fund and its usage?

The endowment is protected by bylaws which provide for a committee to invest the funds. The committee has the power to liquidate donated assets and invest in a variety of financial vehicles. 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.

Further information on the duties of the endowment committee, the usage of funds, and matters relating to the endowment is available in the bylaws. A copy of the bylaws and other information regarding the endowment may be obtained by clicking here.

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. The endowment committee will sell them and invest the profits. The donor receives the full market value as a tax deduction.

Deferred gifts are also welcome. For information on trusts, foundations, pooled income funds, insurance beneficiaries, and many more possibilities, please visit the Thrivent Financial website at http://thrivent.com/planning/charitable/options.html or consult a financial representative in your area.