“They are to do good, to be rich in good works, to be generous and ready to share, thus storing up treasure for themselves as a good foundation for the future, so that they may take hold of that which is truly life.”  – 1 Timothy 6: 18 – 19

                                                                             

Our Purpose

The Endowment Program of Broadway United Methodist Church was established for the purpose of providing members and friends the opportunity to make charitable gifts to the church that will become a source of permanent financial support and a living memorial.

The Program is not intended to replace the regular giving of church members for established purposes and programs that are normally funded through the church’s operating budget.  Rather, endowments and other designated funds enhance and expand the overall ministry and outreach of the church to make disciples of Christ.

 

History of the Broadway Endowment Program

This plaque recognizes three levels of giving to the Endowment Fund.

  • The fund began in 1991 as a single Endowment Fund for Maintenance and Capital Improvements
  • To date, (2013), we’ve had 24 major gifts ranging from $1,000. to $290,000.
  • We have an Endowment Plaque located in the Narthex of the church which recognizes three levels of giving to the Endowment program
  • In 2009, the “Charter & Bylaws of the Permanent Endowment Program” was revised to include two additional named Endowment Funds
  • In 2013, we created our first “Special” Endowment

 

 

Giving to an Endowment Fund is the best way to invest in the future of our church

The Mission Endowment Fund (Designated for missions in and beyond the local church and community as recommended by the Missions Committee).

The Maintenance and Property Improvement Endowment Fund (Designated for maintenance, care, improvements or additions to, or construction of physical facilities as recommended by the Trustees).

The General Endowment Fund (Undesignated – for general and special needs and ministries recommended by the Administrative Board/Church Council).

The Neil & Becky Rhodes Music Enhancement Endowment Fund (Designated to support the Chancel Choir as recommended by the Choir Director and approved by the Worship Committee).

 

Create – The provision to create a Special Endowment
A Special Endowment Fund can be established under the following conditions:

  • It must be designated for a specific purpose such as youth program, music program, scholarships, evangelism, food pantry, etc., as recommended by the donor and approved by the Endowment Committee.
  • It must have a minimum $10,000.00 level of commitment to fund said endowment (either through outright or planned gifts).

 

Investment – How is the money Invested?

100% is in a Balanced Growth Fund that is managed by the Holston Conference Foundation. The current value of the Foundation’s Balanced Growth Fund is $63M.

The Portfolio Benchmark:

  • S&P 500 (Equity) = 60%
  • Barclay’s Capital Gov’t. Bond = 35%
  • US Treasury Bill = 5%

 

Principle – Limitation on use of Principal
The objectives of the Endowment Program are to provide growth, conserve the principal amount, and make use of only the distribution amounts as determined to be available by the Committee.

The purpose of the Endowment Fund is for the principal to be maintained on a permanent and perpetual basis and no part of the principal may be withdrawn except in extreme and overwhelming circumstances as determined and approved by the Endowment Committee and by affirmative vote of 75% percent of the entire membership of a properly called Charge Conference.

 

Distribution – How are distributions made?
Annual distributions from the fund shall be made based on a total return concept, which will take into consideration income and both realized and unrealized capital gains in determining the amount of money available for distribution per terms of this agreement. The goal will be to maximize distributions, while protecting the spending power of the fund from inflation and enhancing the continued growth of the fund. It is anticipated that distributions will be in the 3%-5% range using a 3-year moving average of the market value of the fund at year-end.

 

Ways to Contribute – Charitable giving

Include a Charitable Bequest in your will

  • “I give the sum of “____” Thousand Dollars ($____.00) to the (named) Endowment Fund at Broadway United Methodist Church in Maryville, Tennessee.” or
  • “I give ____ percent (___%) of my residuary estate to the (named) Endowment Fund at Broadway United Methodist Church in Maryville, Tennessee.”
  • Gifts of real estate: (will be sold by the Holston Conference Foundation)
  • Gifts of Stock: (will be sold by the Holston Conference Foundation)
  • Life Insurance policy: specify (named) Endowment Fund at Broadway United Methodist Church in Maryville, Tennessee as the beneficiary of the policy
  • If you are 70½ or older, you can make a qualified charitable distribution from your IRA directly to (named) Endowment Fund at Broadway United Methodist Church in Maryville, Tennessee (can exclude up to $100,000.00/yr from gross income)
  • You can work directly with the Holston Conference Foundation to establish one of the following:

Charitable Gift Annuity

  • Receive fixed income for life
  • Avoid capital gains tax on the sale of your appreciated property
  • Enjoy the benefits of tax savings from a charitable deduction
  • Make a gift to (named) Endowment Fund at Broadway UMC at your death

Charitable Remainder Trust

  • Transfer your appreciated property without paying capital gains
  • Enjoy regular income for life
  • Receive the benefit of tax savings from a charitable deduction
  • Make a gift to (named) Endowment Fund at Broadway UMC at your death

Other Types of Gifts

  • Memorial Gifts – for parents, family or close friends
  • Honor Gifts – Current Pastor or former Pastors, Current staff or former staff, Sunday School Teachers
  • Group Gifts – Sunday School Classes, United Methodist Men, United Methodist Women, etc.