To Endow or Not to Endow
The current economic situation has me wondering about the role that endowments play in a congregation’s life. I have never been much of a fan of endowments for congregations, although I realize that many thoughtful people are.
- It has always seemed to me that a congregation ought to spend its resources (personal, organization, spiritual, financial) down to the nub on its mission.
- And it also seems to me that endowments encourage saving resources – only parceling out small portions at a time.
However, I admit that I have never – not as a denominational staff member or finance committee member in my local church – been able to sell this idea to very many folks. Seems like a lot of folks who don’t have endowments want one, and folks who have them want bigger ones. And I understand. A cushion that means the heating bill will get paid looks pretty good in a winter like this one.
In fact, our own Alban consultants advise about how to set up an endowment, and our seminars often address the issue of how to manage endowments wisely. And there are organizations, such as the Consortium of Endowed Episcopal Parishes, who regularly ask tough and creative questions about the role of endowments in congregational life, as in their upcoming webinar, Key Endowment Challenges in a Difficult Economy. Other groups like the Lewis Center for Church Leadership at Wesley Theological Seminary provide ongoing educational series such as “Funding Your Congregation’s Vision,” which includes a segment on “establishing an endowment through planned giving.”
But times like these, when endowments aren’t the stable, dependable rocks they seemed to be only a few months ago, are making me wonder if there is an even more immediate reason to be suspicious of the role of endowments in a congregation’s life.
- What if giving generously is like a muscle that needs lots of exercise to be strong?
- And what if an endowment is like the car sitting the garage, tempting you to drive instead of walk or ride a bicycle? For many congregations, that car is on the fritz – fuel pump is shot, radiator leaks, and the tires are bald. So those congregations are finding themselves on foot. This situation is probably a lot more exhausting and scary for the folks who never walked beyond the end of their own driveway than it is for the ones who have been hoofing it all over town for years.
Could this be a good time to rethink not only how endowments help us pay the heating bills, but also how they affect our ability to be in mission beyond out own driveways?
Hi, Twila!
Thanks for your thoughts about endowments. Having served on a large UCC conference staff in New England, I got used to seeing churches “living off dead people’s money.” This is not healthy for any congregation, as it diminishes the need for members to be active stewards of their own financial resources (i.e, they don’t have to give generously to support the mission and ministry of their local church). I agree with your muscle metaphor…we’re all pretty flaccid!
One of the things we’ve just done at Plymouth UCC in Fort Collins, CO, is creating an endowed fund for the wider mission of the UCC in concert with our capital campaign. We didn’t have an endowment, so we created one for mission and allowed our members to check a box on their capital campaign pledge card to devote 10% of their gift to the mission endowment. (That way, we don’t develop an unhealthy dependence of endowment for local-church expenses, though we do have tiny funds within the endowment for capital improvement, worship, and Christian ed.)
Some of the churches in our region who count on their endowments to provide fund the basic operating expenses are also feeling the sting of the market downturn. Ouch!
Are there 12-Step groups for churches addicted to their endowments? : )
Peace,
Hal
On the other hand, endowments allow the contributions of those who have gone on to continue supporting ministries they love. I’ve been pastor of small congregations that have been able to support a pastor only because of those gifts.
We’re not addicted to the endowments, but the endowments support ministry in an ongoing way. Not a bad idea, in my mind!
Hal and Bob – thanks for your responses. Great to hear your ideas about how to “endow responsibly.”
I am a member of an endowed parish. We’re too dependent on our endowment, in my opinion. But we also have a splendid, 160-year-old, National Historic Landmark church building (which is, like most old buildings, our best asset and our biggest money pit). So my idea is this: The lavish generosity of our dead members should be spent only on keeping our marvelous building in good shape. Our programs, salaries, and other similar expenditures should come out of the generosity of our current members.
In reality, the generosity of the dead helps to finance today’s programs, too. And that means that some of the care for the old building is being deferred.
Jay describes an interesting dilemma – how to corral the use of endowment proceeds in ways that are sustaining and productive over the long haul, rather than teach the congregation bad habits in the short term. Interesting perspective, Jay. Thanks!