The Parish Endowment
Stewardship AdvocatesTM
The largest gift ever made in Christendom was the bequest of St. Constantine the Great, who in his will left all of his lands to the church.
Bequest Giving to the Church
Jesus Himself Made a Form of BequestBefore our Lord gave the final sacrifice of His life on our behalf, He offered a bequest to indicate how the important things entrusted to him by his Father should be allocated. He died a poor man by the world’s standard, but rich in the love of his Father and also rich in the love of his mother and the beloved disciple, John.
His earthly treasure – his mother, the Virgin Mary, and his dear friend, John the Beloved Disciple stood at the foot of the cross when Jesus said, “Woman, behold, your son!” Then he said to the disciple, 'Behold, your mother!’" (John 19:27). In a certain sense, this was Jesus’ last will and testament.
The Story ContinuesIn another sense, he made no testamentary provision for his meager material possessions –five articles of clothing including the famous “seamless garment woven in one piece from top to bottom. “ (John 19:23) So His garments were divided by the government (the Roman soldiers) into four equal shares with the soldiers casting lots (throwing dice in the lower right corner of the icon) to determine the disposition of the final article. Once again, in a certain sense this is what happens to us when we fail to make provision for our possessions. It is civil law that determines the final disposition of our estate.
It is proper, therefore, that we make careful disposition of the things God has entrusted to us in our lifetime. Of course, for many of us much of this will be apportioned to our children. This is meet and proper as circumstances merit. Yet is there also room to remember the church that has given us so much joy in life? And shouldn’t we make this same Paschal joy available to the generations that follow us?
A Choice for Us
A Bequest is an Easy Way to Give
This is the percent of testamentary gifts in America that are simple bequests
The Average Charitable Bequest
According to a 2011 study by Blackbaud, the donor management software company, the average charitable bequest in America is between $35,000 and $70,000. Of course we often read of gifts that are much, much larger.
The Power of AskingIn the experience of the author, simply and personally asking parishioners if they would consider remembering the parish in their will results in a 20‐30% sympathetic response. Many say, “We never thought of this.”
Remember these are the largest gifts that charitable organizations ever receive. So a 20‐30% response rate can lead to a significant endowment though it may take a generation to get there.
Strategic Intent
When is the best time to plant a tree? – twenty years ago.
When is the second best time to plant a tree? – today.
If your parish does not have an endowment program, now is the time to start one.
Three Fundraising StrategiesAnnual GivingPrograms
Special & MajorGifts Programs
Planned GivingPrograms
Source of Fundsfor Gift
income or cashon hand
assets or multi‐year pledges estate wealth
Charity’s use ofContribution
on‐going programsand ministries
special projectsor unique needs endowment
Audienceall active constituents
specially indentifiedprospects withlinkages, interestand ability
all those interestedIn long term viability of the organization
Methodsannual solicitationor event
match prospectswith needs
continuouseducation, longterm cultivation
Fund RaisingVehicles
Effective financing of church ministry includes all of the above
Characteristics of Bequest Donors
• Affinity – a genuine interest in the mission and work of the church – can be strengthened over time
• Ability – the financial wherewithal to make a significant sized contribution, can be expanded with gift planning
• Access – the opportunity to meet with the prospective donor and gently raise the question
The Case for Endowments
• Attracts and preserves financial reserves to provide stability and consistency
• Provides vehicle for donors interested in making a permanent contribution
• Allows the organization to take advantage of opportunities to meet changing needs
• Creates “space” for strategic planning and entrepreneurial type programs
The Case Against Endowments• If designated toward operations, will erode annual
giving• Erosion of annual giving can lead to lessened sense
of belonging and meaningful participation in parish life by parishioners
• Can create cynicism in parish members (They have all the money they need. Why should I give?)
• Temptation for institutional arrogance (We have the funds we need. We don’t need donors.)
• May inadvertently become a sedative resulting in institutional lassitude and complacency
Investing Endowment Funds
• Provides consistent distribution over time while guarding purchasing power of the distribution
• Invested for “total return” – total investment return equals income (dividends and interest) plus changes (appreciation) in value
• A “payout policy” sets a percentage payout regardless of “income” (dividends and interest) – recommended at 4% today
Suggestions• Every endowment should be a “working” endowment• Transparency and professional investment guidance is critical to
success – help parishioners to understand that this is theirendowment and it is well‐managed and accomplishing much good
• Ideally, does not flow into operations, which should be 100% funded by stewardship giving
• Allocate the ROI to special projects, entrepreneurial and experimental type parish activities or grants to worthy national and local church charities
• Some endowments, depending upon their purpose, can be accessed for capital projects outside the annual operating budget
• Promote this opportunity to do something meaningful for the church but do it gently – it’s a sensitive subject – people often have strange and secretive values around money
Ordained Bastille Day 1974; 38 years a priest; four parishes served; B.A., M.Div., plus 30 courses of study in nonprofit institutional development;12 years serving as Vice Chancellor of Advancement at St. Vladimir's Seminary; 15 years as consultant to well over 100 Orthodox parishes and organizations; author and editor of Good and Faithful Servant: Stewardship in the Orthodox Church.
In June 2012, at his own request, Anthony was honorably returned to the ranks of the laity in order to receive the sacrament of holy matrimony.
Anthony L. Scott
The Principal of Stewardship Advocates
Contact Information and Additional Material
phone/text: 347.831.1848email: [email protected]: www.stewardshipadvocates.orgfacebook.com/stewardshipadvocatesfacebook.com/anthonyscottsatwitter.com/stadvocateslinkedin.com/in/anthonylscottpinterest.com/anthonylscott/slideshare.net/anthonyscottsanewsletter: http://www.stewardshipadvocates.org/
Top Related