The Episcopal Diocese of Ohio
2230 Euclid Avenue
Cleveland, Ohio 44115
Parish Guide to Planned Giving

Managing & Growing
Endowments
2013
For more information:
Lael Carter, Development Officer
216-774-0463; lcarter@dohio.org
The Episcopal Diocese of Ohio
Guide to Managing and Growing
The Parish Endowment
This booklet briefly describes endowment and offers guidelines and sample resolutions for
establishing, managing, and maximizing your parish endowment. You may amend the sample
resolutions to meet your parish’s circumstances. In general, it is advisable to adopt the resolutions
in the order presented in the index. The appendix offers resources for building planned and
endowment giving in parishes.
You may also download this information from the Diocesan website at _______________. If you
have questions or would like to discuss this please call or email Lael Carter, Diocesan
Development Officer, any time at 216-774-0463, lcarter@dohio.org.
Index
1. General Description for Creating and Managing a Parish Endowment
2. Establishing the General Endowment Fund
3. Establishing the Investment Committee
4. Regarding Investment Guidelines
5. Regarding Invested Funds Spending Rule
6. Regarding Individual or Designated Funds
7. Regarding the Disposition of Bequests
8. Regarding Gift Acceptance Guidelines
9. Resolution establishing an Ongoing Planned Giving Program
20. Appendix
a. Glossary of Endowment and Planned Giving Terms
b. Bequest wording – samples
c. “Suggestions for Encouraging Planned Gifts in the Local Church”
d. “Helpful Mini-Articles on Planning Your Gifts”; The Rev. Richard L. Schaper,
www.EpiscopalGifts.org.
e. Reference List of Some Helpful Resources
f. “Why Have an Endowment to Begin With?”; Episcopal Church Foundation
g. “How Using Endowment Income for Operating Needs….” ; Episcopal Church
Foundation
The Episcopal Diocese of Ohio
Creating and Managing Endowment
Four steps are essential to create, manage and grow a faithful parish endowment and planned
giving program. Each congregation, in accord with the Vestry and Rector will:
1. Create a written policy defining in the role of the Endowment in supporting the parish
mission.
2. Establish the actual endowment fund/s by Vestry resolution – describe the mechanisms to
receive gifts, manage, invest, and spend the endowment income, and other contingencies.
3. Establish the process and appropriate committee or committees that will be involved in
investing, managing, and spending endowment income and describe their responsibilities.
4. Establish an ongoing Planned Giving Program and continuously seek to build the
endowment with special gifts and bequests.
The resolutions and suggestions in this booklet provide the tools to manage and grow your parish
endowment. The resolutions are complete as presented or they may be adapted and revised
according to the needs of individual parishes. They are only a plan for getting started. As your
congregation personalizes and grows its planned giving program, you will evolve many
productive new initiatives and ideas.
The endowment of a not-for-profit organization is commonly defined as a fund of money that is
invested to earn a return of income and growth, of which a percentage of the account value is used
each year for specified charitable purposes.
Endowment is always the actual corpus of money that is invested and managed.
There is less agreement concerning the definition for an endowment fund. Generally the term is
used by not-for-profit organizations to describe the fund or funds of money they invest and
manage with the intention of protecting and growing the assets for future expenditure. Terms
such as endowment fund, endowment board, or investment board speak to the process of holding,
investing, and managing the assets described as endowment.
The Episcopal Diocese of Ohio believes that the Vestry holds primary responsibility for managing
parish endowment funds. The Vestry may appoint committees, such as the Investment Committee
and Gift Review Committee, to carry out the day to day management and oversight of the Parish
Endowment. However, the Diocese does not recommend establishing a separate Endowment
Board to manage endowment funds, as distinct from the Vestry. It is ultimately the Vestry’s
responsibility to be closely involved and regularly oversee the management of these important
assets.
Endowment Description
1.A
Resolution
Of
(Parish Name, Address)
Establishing The General Endowment Fund
The Vestry of (Parish) hereby establishes the General Endowment Fund of (Parish), hereafter
referred to as the Endowment Fund of the (Parish).
The purpose of the Endowment Fund is to enable (Parish) to more abundantly fulfill its mission to
serve Christ through God’s people by developing its Christian-based ministries beyond what is
possible through operating funds. Examples of how the proceeds from this Endowment Fund may
be used include, but are not limited to:
 outreach ministries and grants seed money for new ministries;
 special one-time projects;
 capital needs of the parish; and
 other purposes as are specifically designated by donors whose gifts are included in this
Endowment Fund.
The Vestry expects that special, significant contributions to the Endowment Fund will be made
above and beyond regular annual giving by parishioners, family, and loved ones. Examples of
such gifts are bequests, trust and estate gifts, special gifts and legacy contributions, and gifts in
memory of departed family and loved ones.
The Endowment Fund is intended to provide increasing and enduring resources for ministry over
many years. It is NOT intended to support the normal annual operating expenses of (parish),
which are to be funded by annual pledges and contributions. All assets are to be held in the name
of The Endowment Fund of (parish).
The Endowment Fund shall be managed as a true endowment employing the restriction that the
principal shall not be invaded. Only interest and growth on investments will be spent according to
a spending rule as described in the “Invested Funds Spending Rule” resolution.
Distributions from the Endowment Fund
Distributions from the Endowment Fund shall be made utilizing a Total Return Policy that
incorporates a designated percentage of the corpus that will be available for expenditure annually.
The Vestry in consultation with the Investment Committee shall establish a policy defining the
spending rules and protocols. The policy will provide for the withdrawal and use of funds
consistent with the stated purposed of the Endowment Fund as defined in the first section of this
resolution.
No portion of the principal amount of the Endowment Fund shall be “borrowed”, including any
“temporary usage” for other parish needs.
General Endowment Fund
2.A
Acceptance of Gifts
The Vestry in consultation with the Investment Committee shall establish a gift review policy and
process through which the decision is made whether a gift shall be accepted. If a gift of property
other than cash or publicly traded securities is offered the Parish, there will be conducted a careful
review to determine whether the best interests of the congregation are served by accepting or
rejecting the gift. Guidelines for conducting such a review shall be incorporated in the Gift Review
Policy.
Investment Committee as Custodian
The Investment Committee, whose responsibilities are defined by separate resolution, shall
manage and be custodian of the Endowment Fund and other invested funds. In all circumstances
the Vestry is ultimately responsible for management and administration of the Endowment Fund.
Amendment of this Resolution
Any amendment to this resolution or others regarding the management and distribution of the
Endowment Fund shall be adopted by a vote of at least two-thirds (2/3) of the membership of the
Vestry at a regularly scheduled meeting or at a special meeting called specifically for the purpose
of amending the resolutions. In each case a quorum is required.
Disposition or transfer of the Endowment Fund
In the event (Parish) ceases to exist, whether through merger, dissolution or some other event,
disposition or transfer of the Endowment Fund shall be at the discretion of the Vestry in
conformity with the approved congregational constitution and with consultation with the Bishop
of the Diocese of Ohio.
By its permanence, this Endowment Fund shall serve (Parish) and its ministries and uphold in
perpetuity the legacy of those who have gone before and those who honor them by their
generosity.
This resolution is hereby ADOPTED by the Vestry on
Month, Day, Year___________
____________________________________________________________________________
Parish Name, Address (Print)
____________________________________
Senior Warden (Signature)
_____________________________________
Secretary (Signature)
____________________________________
Senior Warden (Print Name)
_____________________________________
Secretary (Print Name)
General Endowment Fund
2.B
Resolution
Of
(Parish Name, Address)
Establishing The Investment Committee
The Investment Committee shall be responsible to:
 Prudently invest or oversee the investment of all assets that are held in the General
Endowment Fund or other invested funds of (parish).
 Report quarterly or more often as requested to the Vestry on the management and
administration of the General Endowment Fund and other invested funds. The financial
report shall include a statement of contributions, disbursements, balances including net
gains and losses, and other information as requested by the Vestry.
 Report annually in like form to the Parish.
The Investment Committee shall consist of no less than five members, all of whom shall be
members in good standing of (parish). They shall be appointed by the Vestry. The Rector and
senior warden shall be ex-officio members of the Committee, and have the same rights and
privileges as other members. A quorum shall consist of three-fourths of the members. The
affirmative vote by a majority of the quorum shall be necessary to carry any motion or resolution.
Actions to hold, sell, exchange, rent, lease, transfer, convert, invest, reinvest, and in all other
respects to manage and control the assets of the invested funds, including stocks, bonds,
debentures, mortgages, notes, warrants of other securities, as in their judgment and discretion they
deem wise and prudent, are to be made upon majority vote of the Investment Committee and by a
delegated member of the Committee.
The Investment Committee shall meet at least quarterly, and more frequently as needed.
The term of each member shall be three (3) years. Upon adoption of this resolution, two (2)
members shall be appointed for a term of three (3) years; two (2) members for a term of two (2)
years, and one (1) member for a term of one (1) year. Thereafter, on an annual basis, the Vestry
shall appoint the necessary number for a term of three years. No member shall serve more than
two consecutive three (3) year terms. After a lapse of one (1) year, former members may be
reappointed. In the event of a vacancy the Vestry shall appoint a member to complete the
unfulfilled term, upon the completion of which that person would be eligible for reappointment to
a normal five year term.
The Investment Committee shall elect from its membership a chairperson and a secretary. The
chairperson, or member designated by the chairperson, shall preside at meetings.
The secretary shall maintain accurate minutes of all meetings of the Investment Committee and
supply a copy thereof to each member of the committee. Each member shall keep a complete set of
minutes to be delivered to his or her successor. The secretary shall also supply a copy of the
minutes to the Vestry in a timely manner.
The Investment Committee
3.A
The Treasurer of the parish shall maintain complete and accurate books of account for the General
Endowment and other invested funds. The records of the General Endowment and other invested
funds must be audited annually, based on the provisions of the Business Practices for Parishes
canon adopted by Diocesan Council, most recently on December 1, 2007.
The Investment Committee, at the expense of the Endowment Fund, may provide for such
professional counseling on investments or legal matters as it deems to be in the best interests of the
Fund.
Members of the Investment Committee shall be liable for any acts or omissions committed by them
(including losses that may be incurred upon the investments of the assets of the Endowment Fund)
only to the extent that such acts or omissions were not in good faith or involved intentional
misconduct. Each member shall be liable only for his/her own intentional misconduct or for
his/her own acts or omissions not in good faith, and shall not be liable for the acts or omissions of
any other members.
No member shall engage in any self dealing or transactions with The Fund in which the member
has direct or indirect financial interest and shall at all times refrain from any conduct in which his
personal interests would conflict with the interest of The Fund.
This resolution is hereby ADOPTED by the Vestry on
Month, Day, Year___________
____________________________________________________________________________
Parish Name, Address (Print)
____________________________________
Senior Warden (Signature)
_____________________________________
Secretary (Signature)
____________________________________
Senior Warden (Print Name)
_____________________________________
Secretary (Print Name)
The Investment Committee
3.B
Resolution
of
[Parish Name, Address]
Regarding Investment Guidelines
The Investment Committee will administer the portfolio of the General Endowment Fund of
[Parish] in accordance with these guidelines, as adopted and amended from time to time by the
Vestry. These guidelines shall be reviewed at least annually by the Investment Committee to
determine whether they shall be amended or remain unchanged.
Objectives
The assets of the General Endowment Fund and other invested funds are to be invested with the
care, skill and diligence that a prudent person would exercise in investing institutional endowment
funds. The primary objective will be to achieve a reasonable total return on the assets, while
limiting the risk exposure to ensure the preservation of capital.
Policies
1. The Investment Committee will make investment decisions in accordance with the
objectives stated above.
2. The “prudent person rule” shall be the governing policy in making investments.
3. These guidelines are not intended to restrict or impede the efforts of the Investment
Committee to attain the General Endowment Fund objectives nor are they intended to
exclude the Investment Committee from taking advantage of appropriate opportunities as
they arise.
4. The Investment Committee shall have discretion and flexibility to implement the objectives
and policies herein set forth.
5. The Investment Committee shall not invest in private placement, letter stock, futures
transactions, arbitrage and other uncovered options and shall not engage in short sales,
margin transactions or other similar specialized investment activities.
6. The Investment Committee may employ outside investment management, such as Joint
Invested Funds Management by the Trustees of the Diocese of Ohio.
Asset Allocation
The Fund shall be allocated between equity investments and bonds and/or other fixed income
securities. The strategic target allocation for the portfolio shall be:
60% equities;
40% fixed income, with allowable ranges as follows:
Allocation Target (10 %); Variation Target (10 %)
Because the securities markets may vary greatly throughout a market cycle, the Investment
Committee may change the asset mix of the Endowment Fund as long as that mix meets the overall
objectives and is consistent with the policy guidelines herein set forth.
Investment Guidelines
4.A
The target allocation among equity classes (e.g., Large Cap, Small Cap, International,
Emerging Markets, etc.) shall be determined periodically (and no less than annually) by the
Investment Committee, in consultation with the investment manager(s), to reflect a prudent
response to current market conditions.
Investment Goals
While maintaining the asset mix within the above guidelines, the Investment Committee accepts a
risk level for the General Endowment Fund and other invested funds’ overall investment program
that is intended to produce a total annual return adequate to cover these components:
- expenditures from the General Endowment and invested funds;
- inflation;
- growth of the General Endowment and invested funds.
Currently, the Investment Committee will seek to achieve the following specific goals:
 Allocating (4 to 5% - allocation to be determined by Vestry) of the fund as “available for
annual expenditure,” as delineated in the Policy on Spending Rules;
 Retaining a portion of the Fund equal to the average rate of inflation, currently 3%;
 Retaining a portion of the Fund for reinvestment to provide for additional growth of the
Fund, currently 2%.
 Combining these elements, the Investment Committee has established a target for total
return on the Fund’s assets of 8-10% annually.
Generally, the investment performance shall be measured over a 3 to 5 year period. Further, it is
recognized that the rates assigned to the three components outlined above are subject to
modification from time-to-time. The Investment Committee shall review the assigned rates
annually, but with due regard to the 3 to 5 year measurement period.
Reporting
The Investment Committee shall provide a quarterly report to the Vestry including a statement of
contributions, disbursements, balances including net gains and losses, and other information as
requested by the Vestry. The report shall reflect compliance with the objectives, policies and
guidelines set forth herein.
This resolution is hereby ADOPTED by the Vestry on
Month, Day, Year___________
____________________________________________________________________________
Parish Name, Address (Print)
____________________________________
Senior Warden (Signature)
_____________________________________
Secretary (Signature)
____________________________________
Senior Warden (Print Name)
_____________________________________
Secretary (Print Name)
Investment Guidelines
4.B
Resolution
of
[Parish Name and Address]
Regarding Invested Funds Spending Rule
Allocations of funds available for distribution will be made in two general ways:
1. Upon written request of the Vestry, and with the approval of the Investment Committee, funds
may be transferred to the parish treasurer for those uses that conform to the purposes and
restrictions specified in the enabling resolution establishing The General Endowment Fund or any
other invested funds resolutions.
2. As set forth in these enabling resolutions, the Investment Committee may obligate monies for
general expenses incident to the management and administration of the invested funds.
Extraordinary initiatives contemplated by the Investment Committee to be undertaken for
development of the invested funds and Endowment Fund will be approved by the Vestry before
implementation.
It is the goal of The Investment Committee to provide for a reasonable and consistent level of
expendable funds to be made available for the purposes established for the fund resolutions. At
the same time the Investment Committee is committed to providing for the long-term growth of all
invested funds, at least at a level commensurate with inflation.
The amount of funds available for expenditure in a fiscal year will be determined on the basis of a
market total-return principle. The funds available for distribution during any one year will be
limited to (recommended is 4-4.5%) percent of the market value of the corpus, which value is
determined by computing a three-year rolling average, with measures taken at the end of each of
the preceding twelve quarters. The market values for this purpose will be taken net of the fees for
investment management. All other expenditures, whether in category 1 or 2 above, will be taken
from funds available for distribution.
Any unexpended funds from those available for distribution in a given year will be accrued and
will continue to be considered “available for distribution” in subsequent years, unless otherwise
designated by action of the Investment Committee, with the approval of the Vestry.
This resolution is hereby ADOPTED by the Vestry on
Month, Day, Year___________
___________________________________________________________________________
Parish Name, Address (Print)
___________________________________ ______________________________________
Senior Warden (Signature)
Secretary (Signature)
___________________________________ ______________________________________
Senior Warden (Print Name)
Secretary (Print Name)
Spending Rule
5.A
Resolution
of
[Parish Name and Address]
Regarding Individual or Designated Funds
A separate and designated investment fund of the General Endowment Fund may be established
for gifts in the amount of $15,000 (or as parish selects, but amount should not be less than $15,000)
or more. These assets are merged with other assets of the General Endowment Fund for
investment purposes, but the identity and designated purpose of each fund is preserved
individually.
The fund is established effective the last day of the quarter in which the completed gift with
designation is received and honored. The value is determined either by the actual value if received
in cash, the market value of marketable securities on the date the gift is received, or as mutually
established by the donor and the treasurer for all other gifts.
Income, realized gains or losses, and unrealized gains or losses are allocated quarterly to each fund
based on its market value relative to the total market value of the General Endowment Fund at the
end of the previous quarter. New gifts are then added and withdrawals are subtracted to arrive at
the new value of the designated fund on the last day of the quarter.
The funds made available for expenditure, under the formula defined in the Spending Rules, are
limited to the purposes specified in the designation. Unless otherwise restricted by the donor or by
the Vestry any available but unspent funds are held in the fund and are available for expenditure
in subsequent years. These unspent funds increase the total market value of the designated fund
and continue to accrue earnings until expended.
The Vestry may agree to establish an individual fund with a lesser amount than $15,000, with the
assurance of the donor(s) that the fund will be added to over time and that the $15,000 minimum
level will be reached in a reasonable time (suggest 5 years). Until such time as the minimum level
is reached and a designated fund is established, no earnings will be available for expenditure.
During the growth period, the portion of the earnings attributed to that fund will be accrued and
become part of the corpus to more readily move the fund to the $15,000 minimum level.
This resolution is hereby ADOPTED by the Vestry on
Month, Day, Year_________________
____________________________________________________________________________
Parish Name, Address (Print)
____________________________________
Senior Warden (Signature)
_____________________________________
Secretary (Signature)
____________________________________
Senior Warden (Print Name)
______________________________________
Secretary (Print Name)
Designated Funds
6.A
Resolution
of
[Parish Name, Address]
Policy Regarding the Disposition of Bequests
This policy statement governs the disposition of bequests which, for purposes of this statement,
will mean any type of gift in which the assets are transferred upon the death of the donor. The
assets may be in any form, such as cash, securities, personal property, real property, and so on.
The bequest may identify the beneficiary in one of two general ways: a) “[Parish] of the Episcopal
Diocese of [Name]” or some other wording such as, “[Parish Name and Address]”; or b) “The
Endowment Fund of [Parish Name and Address]” or similar wording.
Bequests with “[Parish]” as beneficiary can be of two general types:
1. “Designated,” in which the donor has identified a specific purpose(s) to which the
funds should be directed. The Vestry has ultimate responsibility to determine that
the use(s) to which those funds are applied is faithful to the donor’s wishes. The
funds may be directed to their designated purpose(s) either within the General
Endowment or as a designated fund of The General Endowment Fund. A separate
designated fund must meet the minimum gift amount ($15,000 recommended) in
order to be separately established and named. Or the bequest may specify direct
expenditure of the funds, which will then be handled through the treasurer of the
parish.
2. “Undesignated,” in which case the Vestry and Rector will determine the ultimate
use of the funds, though the expectation is that such a bequest would be transferred
at the earliest practicable time to The General Endowment Fund. Such transfers,
once made, are intended to be held in perpetuity.
This policy acknowledges, however, that from time to time urgent needs of the parish may arise to
necessitate an exception to this policy governing the use of “Undesignated” funds as described
above. In such instances the following procedures will apply:
1. The Rector of the parish will assess the particular circumstances giving rise to a
perceived need to make an exception to the policy. Such circumstances should be
judged by the Rector to be truly extraordinary and that no other financial resources
of the parish are available or are expected to be available in time to fulfill the urgent
needs. If the Rector concludes that an exception is appropriate, the Rector will bring
a recommendation to the Vestry at the earliest practicable time.
2. Final authority for granting such an exception to policy will rest with the Vestry.
Bequests
7.A
Bequests designating The General Endowment Fund as beneficiary are automatically transferred
to the Endowment Fund upon receipt. If the bequest was given for a designated purpose and the
gift value is $15,000 or more, then the value of the assets will be applied to establish a designated
fund of the Endowment Fund, as provided for in a separate policy, and the expendable funds
made available for use for that designated purpose only. Designated bequests less than $15,000
will be used as specified, but will remain un-named within the Endowment Fund. If the bequest to
the Endowment Fund is otherwise undesignated, the assets will be directed to that portion of the
corpus of the Endowment Fund whose expendable funds are unrestricted.
The procedure for handling bequests begins with the treasurer of the parish, who will see that any
cash is immediately deposited and held in the bank pending a decision regarding the final
disposition of the bequest. If the bequest includes marketable securities, the assets should be sold
immediately upon receipt from the donor’s estate according to the normal practices of the parish.
The method, timing, agent, etc. for the liquidation of other assets (such as real estate, household
items, or personal property) will be decided by the Vestry with guidance and recommendations
from the Investment Committee or Gift Review committee.
In all cases, the treasurer will prepare copies of relevant documents and distribute them to the
appropriate offices of the parish, including the Rector, the senior warden, the Finance and
Investment Committees.
Acknowledgments of bequests will be given by the Rector and other committee heads as
appropriate in a timely manner.
This resolution is hereby ADOPTED by the Vestry on
Month, Day, Year______
____________________________________________________________________________
Parish Name, Address (Print)
____________________________________
Senior Warden (Signature)
_____________________________________
Secretary (Signature)
____________________________________
Senior Warden (Print Name)
_____________________________________
Secretary (Print Name)
Bequests
7.B
Resolution
Of
(Parish Name, Address)
Establishing The Gift Acceptance Policy
This Gift Acceptance Policy will provide guidelines to representatives of [Parish] who may be
involved in the acceptance of gifts, to outside advisors who may assist in the gift-planning process,
and to prospective donors who may wish to make gifts to [Parish]. This policy is intended only as
a guide and allows for some flexibility on a case-by-case basis. The gift review process outlined
here, however, is intended to be followed closely.
Gift Review Committee
Any questions which may arise in the review and acceptance of gifts to the [parish] will be referred
to the Gift Review Committee. If there is no separate Gift Review Committee then the Investment
Committee shall act as the Gift Review Committee.
The method, timing, agent, etc. for the liquidation of other assets (such as real estate, household
items, or personal property) will be decided by the Vestry with guidance and recommendations
from the Investment Committee or Gift Review committee.
In general the procedure for receiving gifts begins with the treasurer of the parish, who will see
that any cash is immediately deposited and held in the bank pending a decision regarding the final
disposition of the bequest. If the bequest includes marketable securities, the assets should be sold
immediately upon receipt from the donor’s estate according to the normal practices of the parish.
The method, timing, agent, etc. for the liquidation of other assets (such as real estate, household
items, or personal property) will be decided by the Vestry with guidance and recommendations
from the Investment Committee or Gift Review committee.
Cash
1. All gifts by check shall be accepted by [parish] regardless of amount.
2. Checks shall be made payable to [parish]. In no event shall a check be made payable to an
individual who represents [parish] or the church in any capacity.
Publicly Traded Securities
1. Readily marketable securities, such as those traded on a stock exchange, can be accepted by
[parish].
2. For gift crediting and accounting purposes, the value of the gift of securities is the mean of
the high and low prices on the date of the gift.
3. A gift of marketable securities to [parish] will be sold immediately upon receipt, according
to the normal practices of the parish.
Gift Acceptance Policy
8.A
Closely Held Securities
1. Non-publicly traded securities may be accepted after consultation and approval by the Gift
Review Committee.
2. Prior to acceptance, the Gift Review Committee will explore methods and timing of
liquidation of the securities through redemption or sale. The Gift Review Committee will
try to determine:
a) an estimate of fair market value
b) any restrictions on transfer
c) whether and when an initial public offering might be anticipated
3. No commitment for repurchase of closely held securities shall be made prior to completion
of the gift of the securities.
Real Estate
1. Any gift of real estate must be reviewed by the Gift Review Committee.
2. The donor normally is responsible for obtaining and paying for an appraisal of the
property. The appraisal will be performed by an independent and professional agent.
3. The appraisal must be based upon a personal visitation and internal inspection of the
property by the appraiser. Also, whenever possible, it must show documented valuation of
comparable properties located in the same area.
4. The formal appraisal should contain photographs of the property, the tax map number, the
assessed value, the current asking price, a legal description of the property, the zoning
status, and complete information regarding all mortgages, liens, litigation, or title disputes.
5. [Parish] reserves the right to require an environmental assessment of any potential real
estate gift.
6. The property must be transferred to [parish] prior to any formal offer or contract for
purchase being made.
7. The donor may be asked to pay for all or a portion of the following:
a. maintenance costs
b. real estate taxes
c. insurance
d. real estate broker’s commission and other costs of sale
e. appraisal costs
8. For gift crediting and accounting purposes, the value of the gift is the appraised value of
the real estate; however, this value may be reduced by costs of maintenance, insurance, real
estate taxes, broker’s commission, and other expenses of sale.
Life Insurance
1. A gift of a life insurance policy must be referred to the Gift Review Committee.
2. The Vestry will accept a life insurance policy as a gift only if [parish] is named as the owner
and beneficiary of 100 percent of the policy.
3. If the gift is a paid-up policy, the value for gift crediting and accounting purposes is the
policy’s replacement cost.
4. If the policy is partially paid up, the value for gift crediting and accounting purposes is the
policy’s cash surrender value. (Note: For IRS purposes, the donor’s charitable income tax
deduction is equal to the interpolated terminal reserve, which is an amount slightly in
excess of the cash surrender value.)
Gift Acceptance Policy
8.B
Tangible Personal Property
1. Any gift of tangible personal property shall be referred to the Gift Review Committee prior
to acceptance.
2. A gift of jewelry, artwork, collections, equipment, and software shall be assessed for its
value to [parish], which may be realized either by being sold or by being used in
connection with the parish’s exempt purpose.
3. Depending upon the anticipated value of the gift, a qualified outside appraiser may be
asked to determine its value.
4. [parish] shall adhere to all Internal Revenue Service (IRS) requirements relating to
disposing of gifts of tangible personal property and will provide appropriate forms to the
donor and IRS.
Bequests and Deferred Gifts
1. [Parish] encourages deferred gifts in its favor through any of a variety of vehicles:
 charitable gift annuity (or deferred gift annuity)
 pooled income fund
 charitable remainder trust
 charitable lead trust
 bequest
 retained life estate
2. [Parish] (or its agent) shall not act as an executor (personal representative) for a donor’s
estate. A member of the parish staff serving as personal representative for a member of the
parish does so in a personal capacity, and not as an agent of the parish.
3. [Parish] (or its agent) shall not act as trustee of a charitable remainder trust.
4. When appropriate, [parish] may invite prospective donors to consider the gift vehicles
offered by the Diocese of Ohio or the Episcopal Church Foundation (specifically, charitable
remainder trusts, charitable gift annuities, and the pooled income fund) as well as its
investment services.
5. When donors are provided planned gift illustrations or form documents, these will be
provided free of charge. For any planned-gift-related documents, materials, illustrations,
letters, or other correspondence, the following disclaimer should be included:
6. We strongly urge that you consult with your attorney, financial and/or tax advisor to review and
approve this information provided you without charge or obligation. This information in no way
constitutes advice. We will gladly work with your independent advisors to assist in any way.
7. All information obtained from or about donors/prospects shall be held in the strictest
confidence by [parish], its staff and volunteers. The name, amount, or conditions of any gift
shall not be published without the express written or oral approval of the donor and/or
beneficiary.
8. [Parish] will seek qualified professional counsel in the exploration and execution of all
planned gift agreements. The parish recognizes the right of fair and just remuneration for
professional services.
9. The Vestry, upon the advice of the Gift Review Committee, reserves the right to decline any
gift that does not further the mission or goals of the parish. Also, any gifts that would
create an administrative burden or cause the parish to incur excessive expenses may be
declined.
Gift Acceptance Policy
8.C
This policy shall be regularly reviewed by the Gift Review or Investment Committee. Changes to
the guidelines shall by approved by a majority of the Vestry.
This resolution is hereby ADOPTED by the Vestry on
Month, Day, Year_______________
____________________________________________________________________________
Parish Name, Address (Print)
____________________________________
Senior Warden (Signature)
_____________________________________
Secretary (Signature)
____________________________________
Senior Warden (Print Name)
_____________________________________
Secretary (Print Name)
Gift Acceptance Policy
8.D
Resolution
Of
(Parish Name, Address)
Establishing the Ongoing Planned Giving Program
In order to respond to the need of parishioners to participate in responsible stewardship, and in order
to enhance the program of the parish and its Endowment Fund by facilitating opportunities for
planned giving, the following resolution is proposed to the Vestry for its consideration, It has been
approved, in principle, by the Stewardship Committee (or other committee responsible for parish
resource development) which recommends its adoption to the Vestry.
RESOLVED, that The Vestry of St. ____________ Church hereby adopts an ongoing Planned
Giving Program as an integral part of its stewardship activity. It is expected that this program will
have the following components and/or features:
1. Planned giving will be conducted in coordination with other activities of a stewardship nature
and will be under the supervision of the Stewardship Committee.
2. The Rector and the Warden, in consultation with the Stewardship Committee, will appoint two
parish Planned Giving Coordinators (or one Coordinator and an assistant-coordinator).
3. One of the Coordinators will be designated as the liaison with the Diocesan Planned Giving
Office to maintain communication with respect to Diocesan and national Church planned giving
matters.
4. The Rector, or, at the Rector’s option, the Assistant, will:
 become generally familiar with the Planned Giving Program;
 assure that appropriate staff support is provided;
 become generally aware of the material and human resources available in the parish and
the Diocese for planned giving matters;
 support, as appropriate, the oral and written communications necessary to the success of
the Program;
 have convenient access to The Parish Endowment Guidelines.
5. The Coordinators will become familiar with The Parish Endowment Guidelines and maintain
ready access to it.
6. The Coordinators will maintain continuing awareness of resources within the parish and in the
region, the Diocese, and the National Church to assist the parish in its ongoing program, and, if
appropriate, to assist with consultation with prospective donors and/or their legal or tax counsel.
7. The Coordinators will establish an appropriate system to maintain records of oral and written
communication to and from prospective donors and to assure timely response to inquiries with
respect to planned giving matters.
Ongoing PG Program
9.A
8. The Coordinators, in cooperation with the Clergy, will implement a regular schedule for
communicating information to the parish on planned giving stewardship and opportunities.
9. During the next 12 months, the parish will conduct at least one estate-planning seminar as an
educational program and to promote awareness of planned giving opportunities in the estateplanning context.
10. Consideration will be given to the desirability of conducting (perhaps in cooperation with one or
more other parishes) a seminar devoted to an in-depth review of the stewardship responsibilities
and financial planning opportunities in planned giving.
11. The Planned Giving Program will be a continuing activity and will be in place to facilitate
communication with respect to opportunities for planned giving, regardless of whether or not a
capital campaign is in process or being contemplated.
12. The Stewardship Committee will establish a Heritage Society (or Legacy Society or
appropriately named recognition program) to consist of those persons who have informed the
parish in writing of their commitment of a bequest or other planned gift for the benefit of the
parish.
This resolution is hereby ADOPTED by the Vestry on Month, Day, Year__________________
______________________________________________________________________________
Parish Name, Address (Print)
____________________________________
Senior Warden (Signature)
_____________________________________
Secretary (Signature)
____________________________________
Senior Warden (Print Name)
_____________________________________
Secretary (Print Name)
Ongoing PG Program
9.B
The Episcopal Diocese of Ohio
2230 Euclid Avenue
Cleveland, Ohio 44115
Appendix
2013
For more information:
Lael Carter, Development Officer
216-774-0463; lcarter@dohio.org
Episcopal Diocese of Ohio
Glossary of Endowment & Planned Giving Terms
1. Bequeath, v. To give or leave by means of a will when one dies, or to commit, commend, or
entrust.
2. Bequest, n. Something bequeathed; a legacy.
a. General Bequest. A sum of money, property, or percentage of the total estate given to a
person or not-for-profit organization to be used as the organization chooses.
b. Designated Bequest. A gift of money or property to be used for a particular purpose,
such as a memorial, a building, or a program.
c. Residuary Bequest. A gift of money or property made through the estate after all other
bequests have been fulfilled.
d. Contingency Bequest. A gift of any part of an estate that the heirs cannot receive,
usually because the heirs have predeceased the maker of the will. For example, a will is
written to leave a portion of the estate to a spouse, but if the spouse dies first, then that
portion of the estate originally left to the spouse may be left to another beneficiary, by
the “contingency bequest.”
3. Charitable Gift Annuity, n. A gift to a charity that pays income to one or two donors or to a
designated recipient for a set period of years or for the donor’s lifetime. When the recipient
dies, the money remaining in the annuity fund becomes the property of the charity. The donor
receives tax benefits when making this gift.
4. Endow, v. To give money or property to provide an income for.
5. Endowment, n. Money or property given to a person or institution to provide income.
6. Pooled Income Fund, n. A fund wherein charitable donations are pooled together and managed
by a trustee. Income is paid from the fund to the donor or beneficiary. The amount of payout to
the donor/ beneficiary is determined by the fund’s earnings.
7. Trust, n. A legal document appointing someone to manage assets (the trustee) for the benefit of
someone other than the trustee. The beneficiary can be the creator of the trust (the trustor) or
another beneficiary that the trustor might name. The benefits are two-fold – first is payment of
income to the beneficiary; second is payment of principle to a remainderman. A trust is not, by
nature, complex or expensive.
All trusts fall into two basic categories: 1) inter vivos trusts come into effect during the life of
the trustor; 2) testamentary trusts come into effect upon the death of the trustor.
All trusts are either revocable, meaning that they can be changed, or irrevocable, meaning that,
once created, they cannot be withdrawn or altered. Generally irrevocable trusts offer more tax
advantages to compensate for the fact that, once created, they cannot be changed.
Appendix: Glossary of Terms
20. a.1
Most estate plans that involve Charitable Trusts take the form of inter vivos irrevocable trusts in
which the income from the trust investments is paid to the trustor (i.e. the trustor is also the
primary beneficiary). A secondary beneficiary (often the spouse or child) to which trust income
is payable after the death of the trustor can be specified. Upon the death of the final beneficiary,
the remaining trust assets pass to the church or not-for-profit corporation for purposes which the
trustor has specified in the trust agreement.
Charitable Annuity Trust. The payment to the beneficiary is a specified and unchanging
percentage of the initial market value of the trust investments. This percentage figure cannot be
less than 5 percent.
Charitable Unitrust. This is similar to the Charitable Annuity Trust except in the payments to
the beneficiary. Payments to the beneficiaries are fixed at a percentage of the fair market value
as of a certain point each year. This percentage must be at least 5 percent, except under limited
special circumstances.
Charitable Lead Trust. This is a fairly specialized trust in which the trustor turns incomeproducing assets over to a trustee, who then pays the income to a charitable organization for a
set period of time (usually 10 years). After that time the principal is transferred to a noncharitable remainderman (usually a child or grandchild of the trustor). This can be a very useful
tool for estate planning as well as charitable giving.
Appendix: Glossary of Terms
20. a.2
Bequests – Description and Sample Wording
Giving to the parish or the Diocese of Ohio through your will is one of the simplest ways to make a
planned gift. Making a bequest is straightforward and easily executed with your attorney. In
addition, a bequest to the parish or the Diocese can save your estate a significant sum in tax
payments if the estate is subject to federal estate tax.
You can name the parish or the Diocese of Ohio as a beneficiary in your will in a number of simple
ways:





If your gift is to be made in cash, you can designate a dollar amount or you can specify a
percentage or fraction of your estate. The latter choice provides a hedge against inflation
and unforeseen shrinkage while assuring that your heirs receive their proportionate share of
the estate.
You can name the parish or the Diocese of Ohio as the remainder beneficiary of your estate.
The parish or the Diocese of Ohio would receive the residual amount, only after specific
sums have been paid to individual beneficiaries.
You can make a contingent bequest by naming the parish or the Diocese of Ohio to receive
certain assets only if a named individual, such as a spouse, doesn’t survive you. This is a
way of putting a loved one’s security first.
You can specify a non-cash gift of securities, real estate or tangible personal property, such
as art or antiques.
You can set up a testamentary trust. One version is a testamentary charitable remainder
trust, which provides lifetime income for your heirs with the principal ultimately passing to
your parish or the Diocese of Ohio. An alternative is a testamentary charitable lead trust, in
which you designate the income on trust assets for the parish or the Diocese of Ohio over a
certain period of time, with the principal ultimately going to family members or others.
Gifts of unrestricted funds are the most helpful, but you may designate your gift for a specific
purpose if you wish. Before making a restricted bequest, it is important to discuss your intentions
with the rector or the bishop. The following language options may be helpful in planning with your
attorney:
Cash Bequest
I give and bequeath to parish name or the Diocese of Ohio, (address and Fed tax I.D., if known) the
sum of ____________dollars to be used for its general purposes.
Specific Property Bequest
I give and bequeath to parish name or the Diocese of Ohio, (address and Fed tax I.D., if known)
___________ shares of __________________ (describe stock, insurance, etc.) OR all my right,
title and interest in the following described property _________________________ to be used for
its general purposes.
Appendix: Bequests
20. b.1
Residuary Bequest
I hereby give and bequeath to parish name or the Diocese of Ohio, (address and Fed tax I.D., if
known) all (or ______%) of the rest, residue, or remainder of my estate to be used for its general
purposes.
Contingent Bequest
I hereby give and bequeath _______________________________ (describe the property) to my
spouse, if he or she survives me. If my spouse does not survive me, I give and bequeath
___________________________________ (describe the property) to parish name or the Diocese of
Ohio, (address and Fed tax I.D., if known) to be used for its general purposes.
Gifts through a Trust
Upon the death of _______________ (Recipient), the Trustee/s share distribute ______(all,
amount, or percentage) of the then remaining principal and income of the Trust (other than any
amount due the Recipient or the Recipient’s estate under the provisions above) to parish name or
the Diocese of Ohio, (address and Fed tax I.D., if known) to be used for its general purposes.
Gifts for a Specific Purpose
Modify and of the above with the following insert:
… to be used for the following: ________________________________________. If the Vestry of
(Parish Name or Bishop) determine at any time that such purpose is obsolete, inappropriate or
impracticable, they may use the income or principal of this bequest in a manner that seeks to fulfill
the donor’s intent.
Appendix: Bequests
20. b.2
Suggestions for Encouraging Planned Gifts in the Local Church
It is suggested that a permanent committee meet periodically to be sure the church is being
intentional about planned giving. A report semi-annually to the Session will also be helpful. That
committee can create a year-long calendar to spread out and pace as many as possible of those
suggestions from below which fit a particular church.
1. Make a nicely done poster that can be moved around the facilities periodically. It would either
ask the question "Have you remembered the church in your will?" or some example of the
merits of a planned gift with the name of person in the congregation to call for more
information.
2. Print a simple, but clear brochure noting the merits of planned gifts and specific information
about the congregation such as its legal name and suggested wording for a codicil. Place in the
narthex or other location and mail to the membership once a year.
3. Depending on the frequency of publication, use the church newsletter to
 give personal reflections on the joys of doing a planned gift
 tell stories of life income gifts benefiting individuals and then the church
 announce recent gifts and interpret previous gifts or funds still making a difference
 provide wording for wills inclusion and codicils to wills
 tell what previous gifts are now supporting
4. Insert something about the church's endowment committee or foundation in the mid-year
mailings of contribution statements.
5. Provide a minute for mission 3 or 4 times a year to keep this opportunity for stewardship before
the membership.
6. Plan and provide a planned giving seminar once or twice a year for the whole membership or for
particular age groups within the church.
7. Once or twice a year provide a bulletin insert regarding some educational aspect of planned
giving or examples of its impact on this congregation.
8. Once a year do a direct mail piece to the membership reporting on the results of planned giving
in the life of the congregation and encouraging others to join in on the effort.
9. Establish a “Birthday Fund” in the Permanent Funds Ministry and use the income from this fund
to accomplish some mission valued by the congregation. Members are encouraged to make a gift
once a year in the month of their birthday in the amount of their age. Mention is made on the first
Sunday of each month as a reminder and this helps raise the profile of the Permanent Funds in the
minds of the members.
Used with permission by:
Kim Warner, Vice President
Texas Presbyterian Foundation
800/955-3155
Appendix: Encouraging Planned Gifts
20. c.1
Mini-Articles to Use and Modify
For some helpful hints, go to www. EpiscopalGift.org, and click on one of these topics:
1. Checklist for End of Life Planning
2. Give it Twice Trust (Charitable Remainder Trust)
3. Giving to Children
4. Help with Real Estate (Episcopal Realtors' Association)
5. How Do You Wish Your Gift to be Used?
6. Saving for Retirement (Deferred Gift Annuity)
7. How Marvin Tripled his Income (Gift Annuity)
8. Long Term Care
9. Make a Gift of Your Tax Bomb (IRA, 401k, 403b)
10. Making Your Will a Statement of Your Values
11. Paying it Forward (Inheritance)
12. Poor Person's Foundation (Donor Advised Fund)
13. Providing for Your Pets (St. Francis' Guild)
14. Something that Won't Go Away (Endowment Gift)
15. The Difference Made by One Gift
16. The Easiest Way to Remember Your Church
17. Unmarried Partners (Estate Planning)
18. What Our Prayerbook Says About Wills
19. When a Will Won't (Estate Planning Tips)
20. Where Will Your Next Rector Live? (Donate House)
21. Your Will and Missing Words
www.EpiscopalChurch.org is the website of the Episcopal Diocese of California. There you can
find these articles and other valuable information.
Prepared by:
The Rev. Richard L. Schaper
Gift Planning Officer
Episcopal Diocese of California
1055 Taylor Street
San Francisco, CA 94108
Telephone: 415-869-7812
Fax: 415-673-5186
Appendix: Mini-Articles
20.d.1
References and Resources
The Episcopal Diocese of Ohio
A community of 38995 baptized members in 108 parishes and five affiliated institutions. The
Diocese of Ohio’s official website for timely, relevant information and support for parishes and
communicants seeking to grow, give, and serve.
www.dohio.org.
Episcopal Church Foundation
ECF provides programs, products, and services to Episcopal congregations, dioceses, and related
organizations in the areas of financial resource development, leadership, and training. ECF was
founded 60 years ago by then Presiding Bishop Henry Knox Sherrill as an independent, lay-led
organization. Since its beginning, the Foundation has responded to the ever-changing needs of the
Episcopal Church and worked to strengthen the mission of all Episcopalians.
www.episcopalfoundation.org.
TENS (The Episcopal Network for Stewardship)
The Episcopal Network for Stewardship is an association of church leaders who understand,
practice, and proclaim God’s call to generosity. The Mission of TENS is to transform lives by
developing a network of church leaders who encourage generosity.
The Ministry of TENS is fourfold:
Training stewards through conferences, consultations and resources.
Encouraging stewards in their decision to live in abundance.
Nurturing stewards through sharing our stories and witnesses.
Supporting stewardship ministry through our network as we all journey toward greater
spiritual life and health.
www.tens.org.
Consortium of Endowed Episcopal Parishes
Resource parishes for endowment development, stewardship and grant making. Information on
member parishes, conferences, regional meetings and grant ...
www.endowedparishes.org.
Sponsored by Blackbaud Co., creators of Raiser’s Edge software, a helpful discussion about the
process of asking donors to consider a charitable planned gift.
www.blackbaud.com/files/resources/downloads/WhitePaper_TargetAnalytics_HowToTalkWithDonorsAboutPla
nnedGifts.pdf.
There are over 50,000 websites referenced when one “Googles” - Episcopal Church, planned
giving. Many of these sites and those of companion denominations, such as Presbyterian and
Lutheran, offer helpful and creative information. Enjoy searching…
Appendix: References & Resources
20.e.1
Why Have an Endowment to Begin With?
The endowment chair at a large Episcopal Church recently called with a question that on
the surface seemed simple, but at its core raised the most fundamental of questions. He
asked, given the size of their congregation and their annual pledge and plate, was there a
rule of thumb regarding how big their endowment should be. They were about to start a
campaign to raise funds for the endowment and he wanted to know what their goal should
be.
My first answer was a question. There are small churches with large endowments, and
large churches with little or no endowment. The more important question to ask is “What
are you using the funds for?”
Financial independence tops the list of reasons why non-profit organizations establish
endowment funds. A church, however, seeking financial independence through its
endowment fund may be undermining the very reason it exists. Defining the purpose or
“vision” of the endowment fund is clearly step one in operating a well-managed
endowment, even if the fund has been around for a number of years.
The main principle that underlies the purpose of an endowment fund is that endowment
resources empower ministry and are not to be used primarily as savings accounts to
protect us against future uncertainties.
Defining the vision with words like “the endowment fund is a means to enable the church to
fulfill its ministry beyond what is possible through its annual operating funds,” begins to
establish that important principle.
When the only purpose of an endowment fund is to supplement the operating budget of
the church, it often has a corrosive influence on annual stewardship and saps the vitality of
the church’s mission. One church with a $22 million endowment used one-hundred percent
of its endowment return for the annual operating budget. It required the parishioners to
come up with only 40% of the money needed to operate the parish each year. The result:
annual stewardship well below diocesan norms and no additional gifts to the fund in more
than four years.
Another church, taking a different tact, chose to spend down their unrestricted endowment
on outreach by a rate of 10% to 12% a year knowing full well that their annual return over
time would not keep pace with the spending. Their view was that the money was there for
mission, not as a long-term financial reserve. At the same time they challenged
themselves to raise their endowment from $7 million to $10 million over three years.
The more mission-oriented the endowment fund becomes, the more additional gifts it will
attract. When endowments serve as God-given resources to do the work God has called
us to do in ways we could not do without them, they become blessings.
From the Episcopal Church Foundation; www.episcopalfoundation.org
How Using Endowment Income for Operating Needs Is Like Swimming
Naked
(No One Notices until the Tide Goes Out)
(Written: December 2008)
For those churches that have been using their endowment income to balance the
operating budget, 2008 is a year they would rather forget.
The S&P 500 is down 37.65% for the year through November with most other indexes far
worse. So if now is the time you need to draw down cash to spend in your operating
budget, you are locking in your losses and selling at the worst possible time. Using the
endowment fund to plug holes in the annual budget is like using your home equity to pay
for a vacation.
A sure sign of trouble is when the vestry requires an infusion from the unrestricted
endowment to make ends meet in the annual operating budget.
Case in point. A small church had set aside some $300,000 in an endowment fund and
invested it through the Episcopal Church Foundation. In 2006 they began to make monthly
draws on the account to meet expenses.
The fund returned nearly 10% that year, yet they drew down 23%. In 2007 the fund
returned about 7%; their draw was 30%. In 2008, one of the worst years for the stock
market since the Great Depression, their return was (11.4%); their draw: 41%. For 2009
they asked to double their monthly draw.
At best, we told a member of the vestry who called to express his concern, you have less
than a year’s worth of draws until the fund is depleted. Then what? He said he knew they
were spending well beyond their means, yet no one wanted to face reality. You could buy
yourself another year by halving the draw and addressing the problem, we said –
increasing annual stewardship and reducing expenses. Or the congregation will have a
sudden and rude awakening before the New Year is over.
People who give to endowments expect them to be around for awhile. If you drain the
endowment for current operating needs, the chance of receiving the next legacy gift is
severely diminished. Spending rules which protect the principal need to be in place and
applied assiduously, especially in times of stress.
Also, churches need to distinguish between shorter-term operating reserves (to be
invested conservatively) and longer-term endowment funds (with an infinite time horizon)
that have time to recover from market downturns. When you mix the two or tap the
endowment for current operating needs, you are setting yourself up for trouble.
From the Episcopal Church Foundation; www.episcopalfoundation.org