Endowment Fund

In 2004 the Vestry of Piedmont Episcopal Church created the Piedmont Episcopal Church Endowment Fund. The Fund provides a means for parishioners and others to make gifts to Piedmont in order to provide financial support for existing and new parish ministries, outreach programs, and our facilities in perpetuity.

WHAT IS THE ENDOWMENT FUND?

The Endowment Fund is a permanent fund that provides a steady source of revenue to the Vestry and Clergy in support of the needs of the Church.

WHY DOES PIEDMONT NEED IT?

Piedmont is a vibrant Church with many demands for program and ministry services to our own congregation as well as the Madison County community. We have a historic church building and a parish hall that require constant upkeep.

These needs exceed our ability to meet them with current operating funds. Like most churches, Piedmont relies in part on pledges and other offerings to fund its activities. That income, however, is subject to fluctuation, as it depends on economic conditions, and the size and composition of the congregation from year to year.

HOW DOES THE FUND WORK?

The principal of the Endowment Fund is never spent. Instead, it is invested to produce income, most of which is available for ministry programs, outreach, and for the maintenance of Church buildings and facilities.

HOW DO I GIVE TO THE FUND?

The most familiar way is to give money or other property through your will upon your death. This is an excellent way to support the fund, and is the chief means the Fund receives contributions. You can also make gifts benefiting the Fund during your lifetime.

ARE GIFTS ONLY FOR OLDER PEOPLE TO INCLUDE IN THEIR WILLS?

No. Endowment gifts can be made by any person at any age who wants to assist and perpetuate the work of Piedmont Episcopal Church.

WHAT KIND OF THINGS CAN I GIVE?

The most common gifts are cash, stocks, bonds, or other securities. It is possible, however, to make a gift of almost anything of value that you own, including life insurance policies, annuities, and real property.

HOW DOES A GIFT OF LIFE INSURANCE WORK?

You may give an existing policy to Piedmont by making the Church both the beneficiary and owner. You receive an immediate tax deduction for the policy’s cash value and as you pay any future premiums you can take an income tax deduction. A second way is to purchase a new life insurance policy making Piedmont the owner and beneficiary. You then make the premium payments through the Church and receive a tax deduction each year.

HOW DO GIFTS MADE IN TRUST WORK?

Trusts can be structured in many different ways. An attorney or financial advisor can advise you on how to select one that meets your particular situation. One example is a trust under which you reserve to yourself an annuity from stocks or other property for your life or for a specified period of time, with the stocks going outright to the Endowment Fund at the end of the trust period (Charitable Remainder Trust). Or you can do the opposite and set up a trust under which the stock or other property is for a period of years, after which the stock goes to your descendants or other beneficiaries (Charitable Lead Trust).

CAN I MAKE A GIFT IN SOMEONE’S HONOR OR MEMORY?

Yes. This is one of the most popular ways to

honor someone, living or deceased.

ARE GIFTS TO THE ENDOWMENT FUND TAX DEDUCTIBLE?

Yes. Gifts to the Endowment Fund qualify for the maximum allowable federal income tax charitable deduction. In addition, gifts are also fully deductible for federal estate and gift tax purposes. Your attorney or financial advisor can explain the particular tax benefits.

DO I HAVE TO BE WEALTHY TO CONTRIBUTE TO THE FUND?

No. There are no minimum amounts. Gifts of any size are cherished and are a meaningful contribution to the work of Piedmont Episcopal Church.

WHO ADMINISTERS THE FUND?

The Fund is administered by a five member committee. The members are elected by the Vestry and serve five year terms. The Funds are invested with the Diocese of Virginia Trustees of the Fund. As an endowment fund, 5% of the Fund MUST be distributed each year to worthy causes as determined by the Endowment Committee and approved by the Vestry

CAN I MAKE A RESTRICTED GIFT?

Yes. The Vestry has discretion to accept a restricted gift. Restricted giving is not encouraged. Piedmont has a great need for unrestricted funds to enable the Church to establish new programs and ministries, to address our changing needs throughout the years, and to care for our Church buildings. The Piedmont Endowment Fund, a general, unrestricted endowment fund, has been established for the purpose of addressing the Church’s changing needs throughout the years.

WHAT DO I DO NEXT

The Rector and members of the Endowment Committee will be pleased to respond to any questions you may have. You can obtain a list of current members by asking the Rector or checking the Endowment page of the Church website. You will also want to consult your attorney, accountant, financial planner, and possibly other professional advisors, depending on the nature of your gift.

We shall be grateful for your inquiry and your commitment to the mission and work of Piedmont Episcopal Church.

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