The most common question that I hear is “What will happen to our Endowment if…”
- … my church closes, because we are declining in membership?
- … my church merges with another church?
- … my church leaves the denomination?
- … The United Methodist Church denomination crumbles?
Last month, we introduced a video answering these questions by referring to the old baptismal text: “The Church is of God and will be preserved until the end of time.” Churches planted hundreds of years ago still exist, along with many more offspring. The video called on us to have faith that no matter what, God’s churches have a future.
But is faith enough? No! Faith without action falls short (James 2:14-26).
Furthermore, the video doesn’t fully answer the its own question, leaving the viewer with more questions, “What are the contracts, written guidelines, state law, and The Book of Discipline paragraphs that apply to my church’s endowment? I need to know before I change my will.”
This is where the Mountain Sky United Methodist Foundation comes in. We work with the National Association of United Methodist Foundations to help churches answer these critical questions. We use everything we know about Contract law, State statutes, legal precedents, the IRS, The Book of Discipline, the actions taken by the Special General Conference in February 2019, and the rulings of the Judicial Council. Our mission is to make sure that endowment gifts are protected so that churches can continue to have a strong future serving God in their communities.
Your church must have an Endowment Charter Document:
- a legally binding contract that your church membership votes to enter and uphold
- describes how to manage the deposits investments, and how to amend the contract
- controls spending of the proceeds
- complies with state laws and other applicable legal requirements
- has a “What If…?” plan that describes where the money will go if your church is no longer a
United Methodist church
We will help you create Endowment Charter Documents, review and revise existing documents, and archive your documents. We will also help with corporate memory because new church leaders may not be able to recall the work of their predecessors. We will remain in place to help ensure your church’s endowment contracts are enforced, long after the givers have graduated to the Church Triumphant. Sample Documents: Church Sample (DOCX); Non-Church Sample (DOCX)
This service is available for every church and related ministry in our four-state region. There is no charge for this service.
Contact us to see if your church’s Endowment Charter Documents are in order.
In God’s service,
NOTE: An Endowment fund is sometimes called a Foundation, a Permanent Fund, or a Legacy Fund. The intent is to preserve principal while spending up to 5% annually so that the money provides a contribution to ministry indefinitely.