Won’t a huge endowment give current members an excuse to reduce their giving?
The answer to this question depends in large part on how the endowment is set up in the first place. Churches that use the interest distributions solely for mission and outreach, and not for current operating, find that an endowment serves to enhance their ministry. Members of the congregation need to be reminded that their current giving continues to support the important work of the church and a pledge in their estate will perpetuate the church’s outreach ministry beyond their lifetime. A huge endowment does not have to distract from current giving in a place of worship. In fact, planned giving enhances current giving in most cases.

Should the church be “storing up treasures on earth”?
Providing a biblical basis and a theological context for the stewardship of accumulated possessions can serve to avoid the reluctant and negative feelings surrounding endowments in the church/college. Difficulties arise when “treasures are laid up for yourself” in order to only build bigger buildings, larger treasuries and excessive aggrandizement without giving thought to the ways in which the church/college can further God’s Kingdom. If our hearts are set on “treasures in heaven”, faith commitments beyond this time and place will be guided in acquiring, managing and utilizing endowment gifts that ultimately and graciously come from God. Matthew 6:19-21

How should a church trust or endowment fund be set up?
Congregations are richly blessed with members and their spiritual gifts as well as their gifts of time, talent and possessions. Many members have already remembered their church in their estate plans. The result is that a growing number of congregations in all parts of the country are preparing the way for Christ’s work through a Congregational Trust Fund. These funds are being established to receive and administer gifts and bequests to carry on the work of Christ in stewardship areas additional to the general operation of the church.

At some time, most congregations receive at least one substantial gift that is intended by the donor to permanently benefit the congregation. Many congregations find that the gift has unintended, but nevertheless injurious, effects upon other financial support; a few discover that disagreements over the use of the gift result in bitter, divisive struggles.

These sorts of gifts generally come to the congregation as bequests from the estate of a current or former member, through a pre-planned designation in a will or through the benefits of a life insurance policy or some other form of planned/deferred giving. Most of the time congregations were not aware that the individual intended to make a gift out of his/her estate (an expectancy gift). Being unprepared, the congregation may be unable to decide on the best way to administer the gift or expend the income or principal. The congregation may also receive gifts that are so restricted by their terms that the church cannot make use of them.

While there may be some unfortunate circumstances that cannot be prevented, adequate planning and foresight can minimize the potential problem with significant gifts. On the contrary, a congregation can find that its ability to carry out and expand its ministry is revitalized. New programs can be established and concerns for the mission of the church beyond the local community can be funded. In some cases, older congregations undergoing drastic changes are able to maintain themselves and their programs because of significant estate gifts received in the past.

We don’t have a problem with estate gifts right now, why not wait until we receive one and then worry about it?
Individuals and families are encouraged to plan their estates as an act of Christian stewardship. A well-planned estate allows an individual to reduce unnecessary taxes and delays and prepares for an orderly distribution and transition for their loved ones. Preparing a will is an act of love. Unplanned estates sometimes have the opposite effect and far too often result in damaged relationships.

Churches who fail to put a procedure in place to address undesignated estate gifts will often experience division within its membership regarding how the estate gift should be handled. Often a gift that was intended to be a blessing turns into more of a curse for unprepared churches. There really is no excuse for not planning ahead by putting specific policies and procedures in place. It’s part of the churches’ stewardship responsibility to its members.

Members who witness disorganization and division as a result of a poorly prepared church will often decide to direct their estate gifts elsewhere.