Below is a list of Frequently Asked Questions concerning FUMCOG's Endowment Fund. If you have additional questions, would like further clarification, or would like to have a discussion with a member of the Board of Trustees please fill out the form to the right and click the Send button. Someone will get in touch with you.
FREQUENTLY ASKED QUESTIONS
Q. WHAT EXACTLY IS THE FUMCOG ENDOWMENT FUND?
The Endowment Fund is a separate fund held in trust for the benefit of FUMCOG.
Q. WHO MANAGES THE FUMCOG ENDOWMENT FUND?
The FUMCOG trustees are entrusted with fiduciary responsibility to preserve and grow the Fund. The trustees have engaged a professional financial planning company to manage the Fund’s investments. The Fund is currently invested in a conservative mix of stock and bond mutual funds. The Fund’s managers report to the trustees on a monthly basis.
Q. HOW MUCH DOES THE ENDOWMENT FUND CONTRIBUTE TO THE ANNUAL BUDGET?
The trustees decide the amount of the annual contribution based on widely accepted guidelines used by fiduciaries to ensure the existence of the endowment in perpetuity. Currently, more than a quarter of the revenue needed to support FUMCOG's annual budget comes from the Endowment Fund.
Q. HOW CAN I CONTRIBUTE TO THE ENDOWMENT FUND?
There are numerous ways to make a gift to the Endowment Fund. Some of the most common methods are discussed below. You can make a gift outright of cash or property. You can make a bequest to the Endowment Fund in your will. You can also name FUMCOG in your insurance policies, include FUMCOG as a beneficiary of your IRA, or set up a Charitable Gift Annuity to benefit FUMCOG. Importantly, you should check all of these options with your lawyer, tax advisor, and/or financial advisor before moving forward.
Q. HOW DO I MAKE A BEQUEST TO THE ENDOWMENT FUND?
You can update or create your will to provide for a specific bequest to FUMCOG. This is perhaps the simplest way to support the Endowment Fund. Your attorney can provide language to implement your wishes.
Q. HOW MUCH SHOULD I GIVE TO THE ENDOWMENT FUND?
This is a very personal decision based upon your personal situation. However, one approach used by some former members is to include a bequest sufficient to continue their annual pledge in perpetuity (20 times their annual pledge). For example, if your annual pledge is $1000, a bequest of $20,000 could cover your annual pledge indefinitely. Other former members have included a “tithe” of a certain percentage of their estate. However, any amount – no matter how modest – can add up to a sizeable total.
Q. HOW CAN I GIVE FUMCOG APPRECIATED PROPERTY?
You may be holding appreciated assets, such as stock or real estate. These can be given to FUMCOG while providing you with substantial tax savings on the increased value of the property. You should consult your attorney or tax advisor for more information.
Q. WHAT ARE THE BENEFITS OF NAMING FUMCOG A BENEFICIARY OF MY INSURANCE POLICIES?
You may be holding an insurance policy that you no longer need, or have fully grown children for whom support is no longer a concern. You may name FUMCOG as the owner or beneficiary of these policies. You should consult your attorney or tax advisor for more information.
Q. WHAT ARE THE BENEFITS OF NAMING FUMCOG A BENEFICIARY OF MY IRA?
Distributions from IRAs are generally subject to income tax, but since FUMCOG is exempt from income tax, benefits received by FUMCOG are not taxed. Therefore, if you are considering a gift to FUMCOG at your death, using your IRA to fund that gift may be an ideal option. However, because of the complicated rules governing IRAs, it is important that you consult your tax advis0r before making this kind of change. You may name FUMCOG as the primary or secondary beneficiary of an IRA.
Q. WHAT IS A CHARITABLE GIFT ANNUITY AND HOW MAY I USE IT TO SUPPORT FUMCOG'S ENDOWMENT?
You may also set up a Charitable Gift Annuity (CGAs) that will provide you or another beneficiary with fixed income during your lifetime and a residuary gift to benefit FUMCOG. CGAs can be funded with cash, stock or other assets. This vehicle provides you with a current tax deduction and income during your lifetime, while ensuring financial support for FUMCOG in the future. CGAs can be established through the Philadelphia Foundation or other similar organizations that will accept FUMCOG as a beneficiary. You should consult with your attorney or tax advisor before making such a gift.
Q. WHERE CAN I GO TO GET MORE INFORMATION OR ASSISTANCE?
The members of the Board of Trustees can provide you with additional guidance or assistance. In addition, Daniel Ross, Esquire has experience in these areas and can provide you with guidance. In all cases, you should consult your own lawyer and financial advisors.