St Stephen's Endowment Fund
What is an Endowment Fund and how does it work?
The Endowment Fund is a permanent pool of resources, set apart from our operating budget, to secure the financial future of St. Stephen’s beyond the lifetimes of our current members.
An Endowment Fund like is ours is intended to last forever. Your gifts are deposited in the Fund and left to grow.
The return on those investments is made available on an annual basis. The Endowment Committee can recommend using a portion of the proceeds for grants to support our ministries and/or reinvesting some or all of it to grow the Fund.
The illustration below is based on an 8% average annual rate of return with 5% given out in grants, and 3% reinvested.
What is our goal for our Endowment
The goal of the Endowment Fund is to ensure the future ministry of St. Stephen’s Lutheran Church.
The fund was established in 2008 with a balance of $10,000. As of November 30, 2016 the balance was $12,211.58.
The Endowment Committee’s plan is to grow the Endowment Fund by increasing the number of donors, lifetime gifts, and legacy gifts. Our goal is to build up the balance over the next decade to $1,000,000.
How can I give to the Endowment Fund?
Include St. Stephen’s in Your Will
Simply add bequest language such as “I give, devise and bequeath to St. Stephen’s Lutheran Church, 610 31st St SE, Cedar Rapids the sum of $________ (OR _______ percent of the rest, residue and remainder of my estate) for the benefit of St. Stephen’s and its general purposes.”
It’s easy to use a bequest to keep your annual gift coming beyond your lifetime. For example, if you give $2000 a year, an endowed gift from your estate of $40,000 should earn enough interest over time to replace your annual contribution each year.
Special Occasion/Memorial Gifts
given in honor/memory of loved ones, or to celebrate of a special birthday/anniversary.
of cash, stocks, bonds, real estate, or personal property.
policies can be transferred to, or purchased in the church’s name, or can include the church as a beneficiary.
Where Does the Money Go?
We have two funds with the GCRCF: an “Agency Fund” and a “Friends Fund.” Gifts to both funds are tax deductible.
Checks made out to St. Stephen’s Lutheran Church with “Endowment Fund” on the memo line will be deposited in our “agency” fund.
Gifts to our “Friends Fund” qualify for an additional 25% Endow Iowa Tax Credit. Make your check out to the Greater Cedar Rapids Community Foundation with “Friends Fund of St. Stephen’s Lutheran Church” on the memo line.
Other Ways to Give
Talk to your financial advisor or lawyer about Charitable Remainder Trust, Charitable Annuities, Charitable Lead Trust and Life Estate Trusts. Some of these can provide you with lifetime income or tax benefits while also providing a legacy gift to St. Stephen’s.
For more information please contact the pastor or a member of the Endowment Committee.