Endowment Program at the United Methodist Foundation of West Ohio
The United Methodist Foundation of West Ohio is pleased to assist your church in establishing an endowment fund, or assuming the management of an existing endowment fund. A packet of materials is available that is designed to specifically help local United Methodist Churches with that process and to meet the necessary disclosure requirements. Please contact us if you have any questions or would like assistance in completing the process.
The Endowment Program was initiated in 2007 by action of the Council on Development and the Annual Conference. The initial deposit of $111,000.00 to the Endowment Program came from four individuals and represented gifts made from 1987 to 2004, which are to be held in perpetuity for the benefit of various local churches within the Conference.
The purpose of the Endowment Program is to offer to Conference organizations and agencies, its Churches, and its members a vehicle for organizing, funding and managing endowment funds. These organizations can transfer an existing endowment fund to the Foundation, to be held and invested in the Organizational Endowment Funds described below. Organizational Endowment Funds hold assets for Conference organizations, agencies, and churches and generally distribute the investment income to these entities on a quarterly basis. An organizational endowment fund has the potential to increase investment yield since it is pooled with other funds at the Foundation, resulting in lower fees and access to lower underlying investment costs than would be otherwise accessible. Organizational Endowment Funds are invested in one or more investment strategies designed to meet a particular investment goal; and maintain a strategic allocation among a variety of assets types and markets. (Please see the Foundation Investment Policy for additional details.)
Individual donors who wish to establish Endowment Funds with the Foundation may do so, as well. Donors make an initial contribution toward the endowment and may take up to five years to fully fund the endowment. Individual endowments require specific distribution instructions that align with the Foundation's policies. Individual endowments are intended to meet the philanthropic intent of the donor as documented in the donor agreement. Endowments may not be made to benefit individuals.
The Foundation acts as investment agent and custodian for various funds that have been donated to or accumulated by the Foundation and other Conference organizations, agencies, or churches. The investing organizations or charitable beneficiaries must be charitable not-for-profit organizations exempt from federal income tax under Section 501(c)(3) or other applicable sections of the Internal Revenue Code of 1986, as amended and related to the West Ohio Conference. The Foundation's duties include physical safekeeping, investment and distribution of the Funds' assets in accordance with the directions of these entities, or in the case of individual endowments, with the donors' original charitable intent.
Currently there are three investment "funds" available*:
- Short-Term Fixed Income Fund with an emphasis on providing a high level income
- Balanced Fund with an emphasis on providing a balance between long-term growth and current income
- Growth Fund with an emphasis on providing long-term growth with income
*Please note that there are no guarantees with the investment results of these funds.
The objectives, guidelines and policies of each fund are further defined in the Endowment Packet. Expenses and fees for participating in the Endowment Program are also explained in the packet (see Endowment Investment Management Agreement). Participation in the Endowment Program should not be considered without first reviewing the full extent of information contained in the Endowment Packet. The Foundation is more than willing to either assist you in setting up and endowment program or refine an existing program.