The “Mount Pisgah Permanent Endowment Fund” (hereafter referred to as the “Permanent Fund”) was created by the Charge Conference of the Mount Pisgah United Methodist Church by an Agreement adopted on November 4, 1999. A copy of the Agreement, and all documents incorporated within the Agreement, are available for review.
The Permanent Fund provides an opportunity for Church members and friends to make gifts to Mount Pisgah United Methodist Church that will furnish income for future ministries of the Church that are not ordinarily funded through its annual operating budget. While the Permanent Fund is not intended to be a substitute for current giving, it can help provide strength and stability for the future of Mount Pisgah United Methodist Church. It can benefit capital improvements as well as missions and ministry. It can help the Church do things in the future that could not be accomplished otherwise. A permanent endowment fund provides increasingly larger benefits for our Church as more persons make extra annual gifts, give through their wills, or include the church in other forms of their estate planning.
Why Should I Support It? There are many reasons why you should support it. Consider the following:
- It preserves for the future of our Church, the ministries and facilities that have value to you today.
- It maintains for future generations those things that have made a difference in your life.
- It helps you preserve for the future those things that you value and give yourself to now.
- It gives you a way to extend your loving care into the next generation.
- It can help you discover the deep satisfaction of philanthropy far beyond what you think you can do.
- It gives you a share of tomorrow’s Church.
How May I Direct My Gift? You can contribute your resources to this Permanent Fund through direct gifts, memorial gifts, by wills and bequests, and with wise estate planning for charitable gifts. Typically your specific wishes can be honored, or you can make undesignated gifts. You may make a gift or bequest to the Permanent Fund with any of the following designations:
- Mission Endowment Fund - For missions in and beyond the local church.
- Building Endowment Fund - For maintenance, improvements and construction of our physical facilities.
- General Endowment Fund - For special needs and ministries approved by the Church leadership.
You are encouraged to use one of the above designations. However, under the terms of the Permanent Fund Document and with the approval of the Permanent Fund Committee, gifts for specific purposes may also be accommodated.
How Will Income Be Distributed? Distributions of income from the Permanent Fund will be made by the Church Council, upon recommendation of the Permanent Fund Committee, and in strict accordance with any restrictions placed on the gift by the donor.
How Will The Permanent Fund Be Invested? The Permanent Fund will be invested professionally through advisors and managers recommended by the Permanent Fund Committee. Currently investment management is provided through the United Methodist Foundation of Western North Carolina, Inc. This Foundation was chartered in 1967, and was established “to receive and administer funds for religious and charitable purposes, and to enhance the endowment of every aspect of United Methodism in Western North Carolina".
Will My Gift Be Permanent? A Permanent Fund is an endowment fund - that means gifts made today will last long beyond the lifetime of the giver. Only the income from the Permanent Fund may be used, and only for purposes not ordinarily funded through the annual operating budget of the Church. Principal may be used only under extreme and overwhelming circumstance, and then only by the approval of two-thirds majority vote of the Charge Conference. A Permanent Fund that meets needs, achieves specific goals and is managed wisely can provide long-term benefits. It can perpetuate our Church’s values, and inspire commitment to missions and growth. Endowment gifts help provide strength and stability for the future of our Church.
Who Takes Care of the Permanent Fund? The Permanent Fund Committee is responsible for its administrative oversight. This Committee consists of eight members - the Senior Pastor, Finance Committee Chair, a representative of the Trustees, and a nominated Chairperson, along with four other persons elected by the Charge Conference upon nomination of the Church’s Committee on Nominations and Personnel. The Committee is responsible for:
- Receiving and investing gifts
- Recommending disbursements
- Informing Church members about the Permanent Fund
- Inviting support
- Making regular reports to the congregation
- Recommending disbursements
- Informing Church members about the Permanent Fund
- Inviting support
- Making regular reports to the congregation
Will It Grow? With proper investment management and member gifts through wills and other forms of estate planning, the Permanent Fund will grow to become an important source of support for the future of Mount Pisgah United Methodist Church.
What are Some of the Other Ways to Make Gifts to the Mount Pisgah Permanent Fund Instead of Outright Gifts? Gift and estate planning vehicles provide innovative ways to participate in Mount Pisgah’s Permanent Fund. Planned or deferred gifts are the result of careful financial and estate planning, and can be an important part of your overall estate plan. These planned giving opportunities often enable you to receive regular income, enjoy tax benefits, reduce gift and estate taxes, reduce the cost of probate, and support Mount Pisgah United Methodist Church.
Following is a short summary of some of the most popular ways to may make a deferred gift to the Permanent Fund. Other ways such as pooled income funds, charitable lead trusts, etc. are also available. Please remember that in all giving arrangements, many tax and estate planning and personal financial issues must be considered. The Permanent Fund Committee does not provide legal or tax advice. We recommend that you consult with your own personal advisors for this type of advice.
- BEQUESTS – Bequests are a means of making a contribution that may not have been possible during your lifetime. We recognize that bequest intentions are private and that you may choose not to share this information with the Permanent Fund Committee at this time. If you would like to discuss your intentions with us, we encourage you to do so. Perhaps we can assist you to be sure that the gift(s) will be directed to the appropriate designated Fund based on your intentions. The information will remain confidential and we will honor all requests for anonymity. A variety of bequests can be made. For example, a general bequest grants a set dollar amount to the Permanent Fund. A specific bequest assigns a certain asset to the Permanent Fund. A residuary bequest designates a percentage of the residuary estate.
- BENEFICIARY DESIGNATIONS - One easily established deferred gift arrangement is the designation of the Mount Pisgah Permanent Endowment Fund as the beneficiary of your IRA, or your 401(k) plan, or a retirement plan, or a revocable trust or a life insurance policy. These assets are considered contract assets and must be governed by the beneficiary designation form.
- CHARITABLE GIFT ANNUITIES – This type of deferred gift can be set up by making a transfer of cash or marketable securities, and then the Church will pay you and/or another beneficiary a guaranteed annuity for life. The rate depends on the age(s) of the beneficiary(ies). Depending on your specific circumstances, three specific tax benefits may occur with such a gift. You may receive an immediate charitable tax deduction. A portion of each payment received may be tax free. Capital gains liability on appreciated assets may be reduced or deferred.
- CHARITABLE REMAINDER TRUSTS – In giving through a charitable remainder trust, the benefactor permanently transfers property to a trust. He/She then sets the amount of income to be distributed (within IRS guidelines), to whom and for how long, and names the Mount Pisgah Permanent Endowment Fund to receive all or a portion of the trust remainder after the specified payments are made. Tax benefits may occur with such a gift.
- GIFTS OF REMAINDER INTEREST – A donor may give his/her personal residence, vacation home or farm to the Mount Pisgah Permanent Endowment Fund and retain a life interest in it for the donor and another beneficiary. This gives the donor a charitable deduction and removes the asset from the estate. Some limitations may apply and a qualified appraisal must be obtained by the donor in order to claim a charitable tax deduction when making such a gift.
- GIFTS FROM FINANCIAL ACCOUNTS – Bank account proceeds may be transferred or passed to the Mount Pisgah Permanent Endowment Fund without making or changing a will. Many states allow P.O.D. (payable on death) accounts that permit the owner to name a beneficiary of most financial accounts such as savings, checking, money market, cash management, certificates of deposit, etc. The donor indicates that the account will be payable on death to the Permanent Fund while retaining the right to change or revoke the designation at any time.
- LIFE INSURANCE PROCEEDS – Life insurance proceeds can be used in many ways to make a gift to the Mount Pisgah Permanent Endowment Fund. You can change a current beneficiary designation and name the Permanent Fund, or you may purchase a new policy and designate the Permanent Fund as the beneficiary.
Other Questions? Please direct any other questions that you may have about the Permanent Fund to Bill Heintzelman, Chair of the Finance Committee.
Disclosures: We believe the information contained in this material to be reliable, but do not warrant its accuracy or completeness. This material is distributed with the understanding that it is not rendering accounting, legal or tax advice. Please consult your legal or tax advisor concerning such matters.