PROMOTING ENDOWMENT FUNDSPEER Network Round Table MeetingsMay 10-11, 2011
Presented by Lisa M. Radetski, CFRE Director of Individual and Planned GivingFourth Presbyterian Church of Chicago
U.S. SOURCES AND USESOF CHARITABLE CONTRIBUTIONS, 2009 SOURCE: GIVING USA 2010
* Data for gifts to foundations: Giving USA estimate** Includes gifts made in prior years but claimed in tax deductions this year in “carry over,” gifts claimed by donors at a value different from what the nonprofit receives (in-kind gifts), and gifts to new organizations not categorized in time for the survey.
Individuals74%
Bequests8%
Corporations5%
Foundations13%
Arts/Culture4%
International Affairs
3%
Public/Society Benefit
7%
** Unallocated Giving
9%Gifts to
Foundations10%Grants to
Individuals *1%
Environment2%
Health7% Human
Services9%
Education14%
Religion34%
TOTAL GIVING $303.75 BILLION
INTEGRATE WITH OVERALL STEWARDSHIP COMMUNICATIONS
Share information about the endowment in all stewardship communications Annual Session
report Annual Stewardship
drive Small groups Inquirer’s classes Publicly honor
donors in annual report and on All Saints Day
Share the stories How did your
endowment start? What’s your goal for it?
What has it enabled you to do that would not have happened otherwise?
Donor witness/testimonial
IT TAKES $10 MILLION FOR FOURTH CHURCH AND CHICAGO LIGHTS TO BE A CHURCH ALIVE THROUGH WORSHIP, EDUCATION AND DISCIPLESHIP, AND MISSION AND SERVICE
Worship22%
Mission and Service
58%
Education and
Discipleship20%
WORSHIP – MISSION AND SERVICE – EDUCATION AND DISCIPLESHIP
• 4Adapted from the 2010 RDC Annual Report to Session, Fourth Presbyterian Church
RESOURCESSource Description 2011 preliminaryMember and friend giving
Includes all individual gifts to the Church and to Chicago Lights
$5,700,000
Income from invested funds
5.2% draw on the income from our invested funds
$1,900,000
Program fees Includes mission trips, Carnaval, and Chicago Lights receipts
$1,425,000
Chicago Lights Grants Corporate, Foundation & Government Grants
$550,000
Other Bequest funds used for operations, soft drink income, memorial gifts and interest income
$250,000
Lilly Grant Multi-year grant supporting the Pastoral Residency program
$125,000
Day School Benefit Annual fund-raising event for the Day School $25,000
Lorene Replogle Counseling Center
Annual grant received from the Replogle foundation
$25,000
TOTAL $10,000,000
Adapted from the 2010 RDC Annual Report to Session, Fourth Presbyterian Church
WHERE THE RESOURCES GO
2010 2011 Challenge
WORSHIP $ 2,200,000 $2,200,000
MISSION AND SERVICECHICAGO LIGHTSCONGREGATIONALCOMMUNITY
$2,200,000$1,100,000$2,400,000
$2,200,000$1,200,000$2,400,000
EDUCATION AND DISCIPLESHIP
$2,000,000 $2,000,000
GRAND TOTAL $9,900,000 $10,000,000
Adapted from the 2010 RDC Annual Report to Session, Fourth Presbyterian Church
MORE THAN THE USUAL SUSPECTS
“I chose to make a legacy gift to Fourth Presbyterian Church through my retirement savings. For me, beneficiary decisions call into mind big questions. Honestly, Fourth Church popped into my mind right away because of the important place it holds in my life.”
Eran Wade, a member since 2007 and law student shares why it was important for him to include Fourth in his estate plans.
SHARE WHAT’S IN IT FOR THE DONOR/MEMBER
Gratifies Christian need for the enjoyment of giving and faithful stewardship of financial resources
Encourages estate planning
Enables donor to make a larger gift then they might be able to do within their lifetime
May enable the creation of a permanent memorial
May provide annual income for them or other beneficiaries
May have income, estate, and/or capital gains tax savings
SHARE WHAT’S IN IT FOR THE CHURCH Increases available
overall giving options to the church
May produce “actual-received” gifts on a regular basis adding to the church’s income
Increases possibility of member changing a bequest to a lifetime gift
May lead to future gifts through estate planning and bequests
May help in planning for future ministry
LET’S DO THE NUMBERSYear No. of
GiftsTotal dollars received
2011 to-date
2 $64,801
2010 7 $559,4582009 13 $991,6162008 11 $115,6372007 14 $2,695,4582006 10 $654,1772005 14 $2,724,0222004 16 $227,9772003 20 $819,5142002 23 $488,0742001 25 $5,875,232
Totals 155 $15,215,964
Chart shows bequest gifts Fourth Church has received over the past 10 years
Number of self-identified legacy donors has grown from less than 100 in 2003 to over 300 in 2011. Most have come via
the annual stewardship pledge card.
WHAT’S THE PLAN? 12-4-2-1
12 times a year: include a factual update
in your church newsletter with facts about wills, the funds themselves or planned giving
4 times a year: tell the story of your
Endowment Program A donor’s story The fund’s story A recipient story
2 times a year: Sponsor a special event
like a wills emphasis Sunday, a planned giving seminar, or an appreciation dinner or brunch.
1 time per year: Provide Full Financial
Disclosure of the fund at an annual meeting and through an annual report.
Adaapted from Rev. Peter Crouch’s plan from the PCUSA foundation.
RESOURCES ARE NEEDED People in your congregation committed to the
financial health of the church and passionate about the church’s legacy to lead your effort – your committee
A purpose for your endowment that you believe in and can speak about – think “elevator speech”
Buy-in and approval from your Session and any other governing boards or committees of your church
Policies and protocols that outline how you will process and use the gifts received and stewardship of the members who give them.
Expert advice from a professional or professionals you trust
A marketing and education plan to roll-out to your congregation promotes gifts to the endowment
Ongoing leadership and support
WHO ARE MY RESOURCES? Your congregation
You may have estate planning attorneys, certified financial planners, bankers and fundraisers right at your fingertips – just ask!
The Presbyterian Foundation
The National Council on Planned Giving (NCPG)
The Leave a Legacy Foundation
The Association of Fundraising Professionals (AFP)
Your financial institution Your legal counsel
THANK YOU FOR COMING TODAY! If you have questions, feel free to contact me
directly: Email: [email protected] Work phone: 312.981.3380 Cell phone: 708.275.7433
