© Copyright 2015 Thrivent Financial 23831PPT R9-15

© Copyright 2015 Thrivent Financial 23831PPT R9-15

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• Committing to the future

• What is an endowment?

• Mechanics of an endowment

• Marketing the endowment fund

• Giving to the endowment fund

• Endowment fund resources

• Questions about giving

Agenda

Committing to the future

Every heart has a voice—listen to its song.

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The creation of an endowment is a commitment to the future of the organization’s mission and vision.

A clear understanding of the organization’s mission is essential to supporting an endowment.


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The endowment is to be understood in the context of the organization’s overall stewardship for the financial support of its mission. This overall plan includes:


• Annual giving

• Capital giving

• Designated giving

• Endowment giving

What is an endowment?

The difference between “just getting by” and bringing the mission to life.

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• Mutual stewardship

• Local control

• Donor choice

• Tax advantages

• Long-term benefits

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• Local control

• Donor choice

• Tax advantages


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• Local control

• Donor choice

• Tax advantages


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• Local control

• Donor choice

• Tax advantages


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• Local control

• Donor choice

• Tax advantages


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The value of an endowment fund

Total distributions from endowment fund after 50 years: $123,472

Value of endowment fund after 50 years: $83,622

Assumes 1% annual administrative fee

This is a hypothetical investment for illustrative purposes only. It does not represent any specific investment. Actual performance may be more or less favorable.

Year 10 Year 20 Year 30 Year 40 Year 500

500

1000

1500

2000

2500

3000

$ o

f an

nu

al d

istr

ibu

tion

$25,000 Endowment fund 5% Distribution 8.3% Investment return

Mechanics of an endowment

Endowments, when planned and nurtured, help expand ministries and outreach.

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Five steps to an endowment:

1. Identify your needs.

2. Learn what an endowment is and does.

3. Identify how an endowment will support your goals.

4. Establish your endowment fund.

5. Create a business plan.


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Identifying the need

for an endowment


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Keep in mind, endowment funds grow more quickly with additional gifts than by investment return.

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Marketing the endowment fund

Creating a marketing plan:

• Define goals.

• Write key messages.

• Identify key audiences.

• Consider perspectives on giving.

• Deliver the messages.

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Marketing the endowment fund

Creating a marketing plan in six steps

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Delivering the message

Choosing communication tools:

• Bulletins• Sermons• Newsletters• Workshops• Ministry visits• Recognition events• Personal letters

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Marketing timeline

1–3 Months 4–6 Months 7–9 Months

Staff · Form endowment committee· Bulletin articles

· Short articles· Informal forum· Gift idea announcements

· Short articles· Gift idea announcements

Endowment committee

· Develop mission statement· Asset management· Gift promoters

· Planned giving brochure· Workshop for financial professionals· Workshop for members/ donors

· Workshop to continue wise financial management theme

Ongoing activities: Workshops, announcements, brochures/flyers, meetings with prospective givers and recognition events.

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Roles and responsibilities

Role of the leader

• Proclaim the mission and vision of your organization.

• Explain how the endowment fund furthers your mission and vision.

• Your leader can fulfill his or her communications role in several ways, including:

• Sermons or speeches.

• Letters.

• A message in the endowment brochure/annual report.

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Roles and responsibilities

Role of the endowment committee

• Cover everything the organization’s staff doesn’t.

• Create and administer the endowment fund.

• Promote the fund in various ways:• Write articles for the organization’s bulletin or newsletter.

• Organize workshops on various topics related to the endowment.

• Create and distribute the endowment fund annual report.

• Work with the staff to find appropriate ways for the organization’s leader to promote the endowment.

Hear the song from the heart

of the givers instead of asking them to sing the music put in front of them.

Giving to the endowment fund

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Types of charitable gifts include:

• Direct gifts

• Bequests

• Beneficiary designations

• Life insurance

• Charitable gift annuities

• Charitable remainder trusts

• Charitable life estates

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Direct Gift Example

Donors• A Wisconsin couple in their 50s.

Charitable Goal:• Wanted to make an unrestricted gift in their deceased daughter’s

name to the church’s endowment fund.

Solution• Made gift of $30,000 and additional memorial gifts to the

endowment fund in the daughter’s name.

• Parents, family and friends donating to the fund receive charitable deductions.Hypothetical example for illustrative purposes

only.

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Bequest Example

Donor• A New Jersey woman, age 97.

Charitable Goal:• Wanted to provide support for her local Habitat for Humanity

chapter through her will.

Solution• Made a bequest of $1 million to endowment fund for Habitat's

endowment fund held at InFaith Community Foundation.

• Donor’s estate received a charitable deduction.

Hypothetical example for illustrative purposes only.

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Giving to the endowment fund Beneficiary Designation Example

Donor• A Colorado woman, age 65.

Charitable Goal:• Before her death, she planned with her best friend that part of her

assets would set up a permanent charitable fund in her memory.

Solution• Beneficiary proceeds of $315,000 from her IRA were contributed to a

special named subfund under the endowment fund.

• Her estate pays no state, federal or estate taxes on the gift and the full amount is paid to the endowment.


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Giving to the endowment fund Life Insurance Example

Donor• An Ohio woman, age 71.

Charitable Goal:• Wants to support her church with a gift of $200,000 at death.• Needs to take required minimum distributions (RMD) from IRA, but

doesn’t need income.

Solution• RMD given to pay premiums on life insurance contract owned by the

church, donor receives tax deduction.• Church provides tax substantiation to donor for each premium payment,

and endowment fund receives $200,000 death benefit from life insurance contract upon death of donor.


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Giving to the endowment fund Charitable Gift Annuity Example

Donor• A North Carolina widow, age 70.

Charitable Goal:• Wanted to increase her income and benefit the church endowment.

Solution• Church created endowment fund.• Donor made a gift of highly appreciated securities worth $106,000

to church body foundation for a gift annuity.

• Securities sold tax-free and donor received a deduction of $43,655.• At death, the gift annuity remainder benefits the endowment fund.


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Charitable Remainder Trust ExampleDonor

• A Washington couple.

Charitable Goal:• Had appreciated stock that, if sold, would result in high capital gains

tax; wanted to benefit Christian School endowment fund and increase income.

Solution• Stock of $100,000 transferred to a charitable remainder unitrust,

which sold it tax-free.• Donors received income tax deduction of $34,000 and lifetime

income based upon 6.5% of the annual value of the unitrust.

• Upon death, endowment fund receives trust remainder.Hypothetical example for illustrative purposes only.

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Charitable Life Estate ExampleDonor

• South Dakota farmers in their 80s, no children.

Charitable Goal:• To live on the farm as long as possible and rent land, and at death

make a contribution to Christian Camp endowment.

Solution• Title deeded to camp, donors reserving life estates.• They can live on or rent out the land for their lifetimes.• Property appraised at $200,000, creating an immediate charitable

deduction of $112,000.• Upon their deaths, camp will sell the property, with the proceeds

benefiting the endowment fund.


Create an endowment that responds to the changing life and needs of the organization.

Endowment fund resources

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Thrivent endowment fund resources

Thrivent Financial

• InFaith Community Foundation InFaithFound.org 800-365-4172

• Thrivent Trust Company

• Thrivent Investment Management, Inc. Managed Accounts

• Your denominational foundation

InFaith Community Foundation is a public charity serving donors and the community through charitable funds. InFaith is independent of Thrivent Financial and its financial representatives.

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Endowment do’s

• Dream big, dream broadly, dream widely and then focus.• Involve as many consultants in the discussion as possible.• Create a vision for the fund—what can it do to enhance the life of

the organization, its members, its communities.• Feel free to break down the fund into parts that are recognizable

to ordinary people.

• Consider near-term projects with big impact and longer-term efforts—people need to see the fund working in their lives.

• Leave a portion of the fund undesignated for future needs.• Communicate openly and completely with your constituencies

about the process and the conclusions.• Celebrate every gift into the fund and every grant out.

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Endowment don’ts

• Make permanent rules or permanent structures that may hinder future choices—make a plan for the next five years, not the next 50.

• Get caught up (too early) in details like:• Investment policy.• Grant timing.• Budget questions.

• Create dependencies—don’t tie any program or effort exclusively to the endowment. Having a variety of funding sources enhances any program.

• Don’t even think about abandoning your annual fund, which supports your core operating budget—that would be a serious mistake.

Each member can give according to his or her ability.

Questions about giving

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About Thrivent Financial

We’re a financial services organization that helps Christians be wise with money and live generously, and we:• Offer a broad range of products and services, including:

• Life insurance.• Annuities.• Mutual funds.• Guidance from financial representatives, nationwide.

• Have helped our nearly 2.4 million member-owners make wise money choices that reflect their values—for more than a century.

• Provide opportunities for them to be even more generous where they live, work and worship.

InFaith Community Foundation is a public charity that serves donors and the community through charitable funds. It is independent of Thrivent Financial and its financial representatives.

The Endowment Guide

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InFaith Community Foundation is a public charity serving donors and the community through charitable funds. InFaith Community Foundation is independent of Thrivent Financial and its affiliates and financial associates.

Thrivent Financial and its respective associates and employees cannot provide legal, accounting, or tax advice or services. Work with your Thrivent Financial representative, and as appropriate your attorney and/or tax professional for additional information.

While Thrivent Financial is proud to support churches through its members and benevolent efforts, it and its affiliates are not a church or part of the church.

Insurance products issued or offered by Thrivent Financial, the marketing name for Thrivent Financial for Lutherans, Appleton, WI. Not all products are available in all states. Securities and investment advisory services are offered through Thrivent Investment Management Inc., 625 Fourth Ave. S., Minneapolis, MN 55415, a FINRA and SIPC member and a wholly owned subsidiary of Thrivent. Thrivent Financial representatives are registered representatives of Thrivent Investment Management Inc. They are also licensed insurance agents/producers of Thrivent. Fee-based investment advisory services are available through qualified investment advisor representatives only. For additional important information, visit Thrivent.com/disclosures.

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© Copyright 2015 Thrivent Financial 23831PPT R9-15