Some years ago (around 2003) a number of St. James’ parishioners decided that a sum of money should be set aside and that the proceeds from the growth of that money would be used for the betterment of St. James’ by developing ministries beyond what is possible through its annual operating funds.
That meant distributions from the fund could not be made to the operating budget of the Parish. So how can it be used? It can be used for capital improvements of the Parish, outreach ministries and grants, and seed money for new ministries and special one-time projects. In addition, if specified, it can be used for capital needs of the Little Church repair and for the maintenance of the Memorial Garden.
How much of the Endowment Fund can be distributed in a year? Usually 4-5% at the end of the year, making sure that the distribution does not “invade” the principle, or the monies given to the Endowment Fund. So, if the total money given to the Endowment Fund is $100,000, only the interest can be distributed. If the fund gains $4000 in a year, then that is the maximum that can be distributed in that year.
How is the Endowment Fund funded? Thought you would never ask! In a whole bunch of ways: cash donations, stocks, bonds, donations from wills and trusts and more. For example, should you wish to remember St. James’ in your will, you may actually write a donation right into your will making the designation to the St. James’ Endowment Fund, if that is your wish. Little Church or Memorial Garden donations must be specified.
More on the Endowment Fund in future writings.
~The Endowment Board