1. What is an endowment fund and how does it work?

What is an endowment fund?  Many not-for-profit organizations such as churches, hospitals, museums, libraries and universities establish financial endowments to assist supporters of those organizations in donating money and other property for the ongoing support of the organizations’ missions. 

The Manly Memorial Baptist Church Endowment Fund (“The Endowment Fund”) was established as a means for those to whom our church is dear to make gifts and bequeath property to be managed and used to provide future financial support for church projects and ministries which might not be possible through the normal annual budgeting process.
 

How does The Endowment Fund work?  It is meant for the future.  It will strengthen and undergird opportunities for ministry that God will give to those who come after us.  The Endowment Fund is designed to be a complement, not a substitute, for our regular giving through tithes and offerings.  Some may look at The Endowment Fund as providing a means for continued stewardship beyond our lifetime by being part of something that will leave a legacy which will impact generations to come.  Ron Hall, President and CEO of the Virginia Baptist Foundation, in a recent article referred to a church’s endowment as “the church’s pay-it-forward fund.”

Inherent in the concept of an endowment is permanency of the principal with only earnings being available for expenditure.  The seven Directors of The Endowment Fund are charged with managing the assets of the fund and determining how earnings from unrestricted gifts to the fund will be distributed each year in support of the ministries of the church.  Earnings from gifts that were restricted by the giver at the time of the gift will, of course, be distributed in accordance with the wishes of the giver.

Click here to return to the main page for the Endowment Fund.