Parker UMC Permanent Endowment Fund
What is the PUMC Endowment Fund?
- Investment managed to produce permanent income
- Capital is preserved; income may be spent
- Four separate funds, each with its own purpose
- Created in 1996 with gifts to the church
- Generated $350,000 in distributions over 22 years!
What Are Endowed Funds?
Endowed funds are permanent sources of funding to support special projects at PUMC.
The PUMC Permanent Endowment Fund was established with gifts to the church to be permanently set aside to provide income that can help the church reach its goals. The principal of gifts to the Endowment is not used; it is invested to generate income to achieve either specific purposes (such as the Scholarship Fund or the Stroh Fund), or to assist the church in missions or other purposes, as determined by the Endowment Committee. The income cannot be used for normal operating expenses of the church. The Endowment differs from other kinds of Memorial Gifts in this way: Gifts that are made in memory of someone, or through a general bequest to the church (without specifying allocation to the Endowment Fund) may be used to achieve their purposes. The Endowment, on the other hand, preserves the principal so that income can be generated in perpetuity. A strong endowment can assist the church in weathering downturns in the economy.
Because of the foresight of members of PUMC, a fund was created that has preserved principal, experienced modest growth, and since 1996 has benefitted the church by about $350,000 in total distributions! The Endowment Fund can continue to assist the church with extraordinary needs that are not part of the general operating budget. However, we can do much more!
We have a vision to increase the Endowment Fund to a point where the earnings can make a significant difference in the life of our church, as opposed to mostly reacting to emergency needs. We could do much more with mission projects, community outreach, fine arts, child and adult education, and to create a source of financial security in the face of the next economic downturn.
The PUMC Permanent Endowment Fund was started in 1996 and is comprised of four separate funds: The Miller Scholarship Fund, the General Fund, the Stroh Fund, and the newly created Preschool Fund. The Miller Scholarship Fund was given to PUMC in the mid-1980s with $11,000 to provide scholarships for youth and became part of the Endowment Fund in 1996. The “general fund” was initially created with aggregate gifts totaling about $85,000. The Stroh Fund was created as a separate fund when the church’s parsonage was sold in 2001 for $304,000. The preschool fund was created in 2019 to benefit the ministry of Little Blessings Preschool.
As of April 30, 2019, the value of the Scholarship Fund was $15,495; the General Fund was $107,595.85; the Stroh Fund was $391,048.85; and the Preschool Fund was $100,000, for a total value of $614,139.70. Distributions in 2019 include $1500 for scholarships and $4,490 for electricity to the memorial garden.
- Youth scholarships
- Air conditioner
- Classroom carpeting
- Grounds drainage
- Roof dormers repair
- Building sealing
- New piano donation
- Acoustic panels
- Sound system
A generous donation from Rahn and Kay Porter in 2019 began the Little Blessings Preschool Fund to support the preschool ministry here at Parker UMC. This donation is intended to be “seed money” in hopes that others will generously donate to this fund to provide and grow continuous income for this ministry.
Income from the Scholarship Fund is used to provide scholarships for High School Seniors who are going on to an institution of higher education, and who were active in PUMC youth. In 2016 and 2017, scholarships of $500 each were granted to students who submitted applications. Total Scholarships have been awarded in the amount of $18,300 through 2017.
Income from the General Fund is used from time to time as determined by the Endowment Committee, upon requests from other Church committees. Most recently, funds were used for the new piano in the sanctuary. Total distributions from the general fund earnings through 2017 have totaled about $77,200.
Income from the Stroh Fund must be used solely for capital improvements (a requirement in the United Methodist Book of Discipline) and has been used for drainage projects, sealing of the outside of the church, work on the roof, replacing the air conditioning units, drainage landscaping, and electrical and acoustic improvements. In 2017 funds were distributed to install gutters on the church roof, and to replace the carpeting in the children’s classrooms. Total distributions through 2017 are approximately $195,000.
In 2016, we contracted with Vehicles for Charity to facilitate vehicle donations to the church and received our first donation in the fall. The Endowment Committee voted to allocate contributions from vehicle donation initially to the Scholarship Fund, to build up the principal so that more scholarships can be made available to PUMC youth. Simply call 1-866-628-2277, mention Parker United Methodist Church, and Vehicles for Charity will take care of the rest.
In terms of what you can donate it is most any vehicle including trucks, cars, boats, motorcycles and recreational vehicles. They do not have to be running. Your vehicle will be sold at an auction or to salvage depending on the condition. The donation is tax deductible.
In order to donate a car, you must have a title in your name.
Picking up the car is done by a towing company (1-866-6282277) within two to three business days so be prepared to provide a physical address for the pick-up. You must have a set of keys and the title for the car at the time of pick up. You do not have to be with the vehicle if you make special arrangements. The tow truck driver will issue a tow receipt at the time of pick up. This is not your final tax receipt unless the sale of your vehicle does not exceed $500.
The value of your car is determined when the vehicle is sold at the auction. If the car sells for less than $500 you may deduct the full $500. If your vehicle sells for more than $500 you will need to include the IRS form 1098C with your tax return. You will be supplied this documentation after your vehicle sells.
Paperwork needed – none other than the title.
Donations may be made in a number of ways.
- The three Endowment Funds are listed on the online donation page on the church website.
- To donate your vehicle, simply call 1-866-628-2277, mention Parker United Methodist Church, and Vehicles for Charity will take care of the rest. Click [here] for more information.
- If you write a check, make it payable to “Parker United Methodist Church Endowment Fund.” If no specific fund is indicated, it will be added to the General Fund.
- Gifts other than cash may also be made, including transfers of stock, artwork or real property.
- Gifts of life insurance may be made either by listing “Parker United Methodist Church Endowment Fund” as the beneficiary, or assign ownership to Parker United Methodist Church.
- Gifts of IRAs, 401(k)s, tax-deferred annuities or other retirement plans may also be made by listing Parker United Methodist Church Endowment Fund as the beneficiary.
- Individuals at least age 70 ½ may transfer up to $100,000 each year directly from an IRA to “Parker United Methodist Church Endowment Fund.” This direct IRA payment is now “permanent” in the Internal Revenue Code
- Consider including a gift to “Parker United Methodist Church Endowment Fund” in your Will or Revocable Trust.
The Endowment Committee generally meets every other month on the fourth Tuesday of the month and oversees the investment of the funds. At this time, we make socially responsible investments through the Mountain Sky United Methodist Foundation using an asset allocation to balance investment return and capital preservation. If you have any questions about the fund, please feel free to contact any members of the Endowment Committee: Laurie Hunter, Keith Kauffman, and Dick Miller.