Holy Comforter - Parish Life

The Holy Comforter Endowment Fund

What is the Endowment Fund?

An endowment contribution is commonly referred to as “the gift that keeps on giving” because only the interest is used while the principal continues to grow. Therefore as the endowment grows, so does the impact of the gift. In December 2004, the Holy Comforter Vestry formally approved that an Endowment Fund would become a permanently restricted Church fund. Contributions made to the Holy Comforter endowment Fund are invested and used in accordance with the governing documents of the Endowment Fund. As a new and modestly supported fund to date, the Fund income has generally not been spent, but rather reinvested in the Fund principal.

For what purposes can the Endowment Fund earnings be used?

Distributions from the Holy Comforter Endowment Fund can be used for:

Mission and outreach
Capital expansion and improvements
Other purposes that support the mission and goals of the Parish as decided upon by the Endowment Board and Vestry

Why is an Endowment Fund important to Holy Comforter?

The Endowment Fund was established to help our parish fulfill our mission by developing ministries beyond what would be possible through annual operating funds; i.e., it would provide an additional revenue stream to fund projects not supported in the annual budget. An endowment fund helps keep the light of Holy Comforter burning in our community long after we are gone – not unlike the Holt gift of 1911 that established our Church. The goal is to build a large enough principal such that the earnings can be allocated to projects and needs that the annual budget cannot support.

How is the Endowment Fund managed?

The Endowment Fund operating policies are stringent and ensure the integrity of the fund management. An Endowment Fund Board is entrusted with the administration of the Endowment Fund, and their administration is subject to all Church policies as well as relevant public laws and Diocesan Canons. The Endowment Board annually reviews the Fund’s status and votes on whether to:

a) recommend to the Vestry the portion of income (“assets”) that may be distributed to further the mission of the Church, or

b) recommend that no assets be distributed but rather be left in the Fund to appreciate. The Endowment Fund Board must also provide a full account to the parish of the administration of the Fund during the past fiscal year.

While gifts of cash, certain personal property, and marketable securities can be accepted outright as Endowment Fund contributions, proposals for gifts such as real estate, encumbered gifts or personal property worth more than $1,000 must be reviewed by the Endowment Board and Vestry before being accepted.

Contributions to the Endowment Fund are placed under the management of professional financial services, with the goal of developing an investment portfolio that will yield a reasonable rate of return at a prudent risk exposure. The Church Investment Committee and the Endowment Fund Board monitor the financial returns of the Endowment Fund and the fund management performance.

How can someone make a gift to the Endowment Fund?

Endowment assets are often largely funded by planned gifts, but gifts from anyone, at any time, and in any amount are welcomed, and such gifts may have tax benefits. The most common gift vehicles for endowment giving include:

Outright Gifts
Gifts of cash designated for the Holy Comforter Endowment Fund
Memorial gifts of cash or marketable securities made by surviving family members and friends, designated for the Holy Comforter Endowment Fund
Gifts from IRA accounts (the IRA Charitable Rollover provision, which allows individuals to make distributions from their IRA accounts directly to a charity without recognizing the distribution as income, has been extended as of this writing to cover distributions made in the 2011 tax year)
Marketable securities – Gifts of stock are deductible at market value rather than cost
Planned Gifts – A planned gift is a gift that is timed so as to help a donor minimize
tax liability or to be able to make a gift that might not be possible during the donor’s lifetime.
Bequests –A bequest is one of the most common forms of endowment giving and for many people, it is the means to the most generous financial gift they will make. Using this method, a charity is bequeathed a gift in a donor’s will or living trust. The gift may be a percentage of the donor’s estate, a specific dollaramount or description of property.
Marketable securities – Gifts of stock are deductible at market value rather than cost.
Life insurance and retirement accounts – Holy Comforter can be named as a beneficiary of all or a percentage of a life insurance policy or retirement account (the IRA Charitable Rollover provision, which allows individuals to make distributions from their IRA accounts directly to a charity without recognizing the distribution as income, has been extended as of this writing to cover distributions made in the 2011 tax year).
Charitable trusts or gift annuities – Trusts and annuities provide the donor with a number of financial benefits: Provides life income for the donor and others, Reduces capital gains taxes, Qualifies for a charitable income gift deduction, Reduces or eliminates probate expenses and estate taxes.

How can I get more information about the Endowment Fund?

If you have questions about the Holy Comforter Endowment Fund or Endowment Fund Board, or would like to review the governing documents of the Endowment Fund, simply call the Church office and you will be directed to a member of the Endowment Fund Board.

MAKING A BEQUEST TO HOLY COMFORTER

Throughout its history, Holy Comforter has benefited greatly from bequests. Making a provision
for the Church in your will is a wonderful way to leave your legacy and to also ensure that the
legacy of Holy Comforter will continue long into the future.

The Leave a Legacy® organization (leavealegacy.org) offers the following guidance regarding
bequests:

Charitable Bequests

A charitable bequest is simply a distribution from your estate to a charitable organization
through your last will and testament. There are different kinds of bequests. For each, you
must use very specific language to indicate the precise direction of your assets, and to
successfully carry out your final wishes. In any charitable bequest, be sure to name the
recipient accurately.

Do you have an estate?

Your estate is the sum of your assets, including property you own, insurance policies,
retirement accounts, cash on hand, etc. Wealthy people may have very large estates, but
even people who aren't wealthy often have the resources to make a charitable bequest. If
every adult in America made a will and included a bequest of just $100, billions of dollars
would flow to charitable causes every year.

Below, we have listed some of the more common kinds of bequests. We always recommend
that you carefully review the terms of your will with a professional trained in handling trusts
and estates.

General Bequests are legacies left to certain people or causes that come from the general
value of the estate, and are made by designating a specific dollar amount, a particular asset
or a fixed percentage of your estate to the cause of your choice.
Specific Bequests are made when a particular item or property is bequeathed for a
designated purpose. (i.e., instruments bequeathed to the local school district for use in music
education; dollar funds to be used in the operation of a school or church.)
Residuary Bequests are made when you intend to leave the residue portion of your assets
after other terms of the will have been satisfied.
Contingency Bequests allow you to leave a portion of your estate to a particular charity if
your named beneficiary does not survive you.

If you would like to include Holy Comforter in your will, the following samples of bequest
language are provided for your use:

General bequest language:

"I give, devise, and bequeath to the Episcopal Church of the Holy Comforter in Burlington,
North Carolina, the sum of $________, [or _____% / all the rest, residue, and remainder of
my estate] to be used for the purposes of the endowment of the Episcopal Church of the Holy
Comforter."

Or, to make an unrestricted non-endowment bequest to the Church:

"I give, devise, and bequeath to the Episcopal Church of the Holy Comforter in Burlington,
North Carolina, the sum of $________, [or _____% / all the rest, residue, and remainder
of my estate] for the benefit of the Episcopal Church of the Holy Comforter and its general
purposes."

Contingency bequest language:

"I devise and bequeath the residue of the property, real and personal and wherever situated,
owned by me at my death, to (name of beneficiary), if (she/he) survives me. If (name of
beneficiary) does not survive me, I devise and bequeath my residuary estate to the Episcopal
Church of the Holy Comforter in Burlington, North Carolina, for its endowment."

Or, to make an unrestricted non-endowment contingency bequest to the Church:

"I devise and bequeath the residue of the property, real and personal and wherever situated,
owned by me at my death, to (name of beneficiary), if (she/he) survives me. If (name of
beneficiary) does not survive me, I devise and bequeath my residuary estate to the Episcopal
Church of the Holy Comforter in Burlington, North Carolina, for its general purposes."

A Personalized Endowment may be established for the Church with a gift of $25,000 or more.
In such a case, the donor may tailor the purpose of the gift to benefit a particular area of
interest. Sample language follows:

Specific bequest language:

"I give, devise, and bequeath to the Endowment Fund of the Episcopal Church of the Holy
Comforter in Burlington, North Carolina, the sum of (insert amount of at least $25,000) for the
benefit of the Episcopal Church of the Holy Comforter to be used for the following purpose:
(state the purpose; examples: for the music program; for Christian formation). If at any time in the judgment of the Vestry of the Episcopal Church of the Holy Comforter it is impossible or
impracticable to carry out exactly the designated purpose, they shall determine an alternative
purpose closest to the designated purpose."

This guide is not intended to provide specific advice about estate planning or to recommend a
specific course of action. It is important to discuss your gift strategy with your attorney or tax
advisor in order to ensure that your philanthropic goals are met.