The Laguna Niguel Presbyterian Church Endowment Fund was established in 1999 in order to practice broader stewardship.
Fund is Perpetual
Donor has ability to specify mission area or project
The investment objective shall be to preserve and enhance the real purchasing power of the assets of the respective funds, except where the terms of the gift direct otherwise. Ordinary business care and prudence shall be exercised regarding the management of the funds. The income is used to support mission projects, youth camps and seminary scholarships as determined annually by the Planned Giving Committee and the Session. The Fund is “perpetual,” in that the principle is never spent. Thus every dollar invested in the fund will continue to work for the benefit of the church year after year. Income will not be used to support the church operating budget except in a crisis situation.
The Endowment Fund is operated according to the “Planned Giving Committee Policy” approved by the Session. This document specifies the manner is which income from the fund is to be used and financial management procedures. These policies will be available upon request.
TYPE OF GIFTS
There are three basic types of gifts and bequests:
- Unrestricted gifts
- Restricted gifts – donor-specified use
- Restricted gifts with name of donor. For gifts over $25,000, individual accounts can be established reflecting both the donor by name and the donor-specified use.
The Planned Giving Committee will assist potential donors in identifying suitable restrictions, namely those that are not overly specific or inappropriate. The Session has ultimate authority as to whether to accept a restricted gift that fails to meet its guidelines. Examples of acceptable restrictions include:
- “Endowment Fund for Youth Ministries.”
- “Endowment Fund for Local Mission” or other specific mission area.
- “Endowment Fund for Scholarships.”
- “The Donor’s Name Endowment Fund for Something Special” (large restricted gifts only).
Gifts can consist of cash, securities, real estate or other financial vehicles, such as annuities, charitable trusts and life insurance. In the case of real estate or other property, the Session will need to approve such gifts. There are several types of assets that can be bequeathed to the church without hiring an attorney:
- Life insurance proceeds
- Transfer on death (TOD) – brokerage accounts
- Transfer on Payment (TOP) – bank accounts
LIFE INCOME GIFT PLANS
There are a variety of tax-reducing annuities and trusts that enable the donor to retain income for life, with the assets eventually gifted to the church. For more information, contact the Planned Giving Committee.