Planned Giving & Estate Planning
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Foundation Endowments

How Does an Endowment Fund Work?

Long-term or permanent assets of a congregation or institution invested to grow and provide earnings that provide ongoing income to support selected needs or ministries of the congregation or institution. Alternatively, an endowment fund can be established that allows only the actual earnings received to be used for the ministry. Other endowment funds are established to serve as reserve funds. Distributions are taken only as needed by the congregation or institution for capital improvements or building maintenance. Another reason for distributions may be costly repairs such as replacement of air conditioning or heating units or roof repairs even when such maintenance is beyond the resources of the operating budget.

How do I start a fund at the Foundation?

Any congregation, institution, or agency located and officially related within the New Mexico Annual Conference is eligible to start a fund at the Foundation without regard to minimum contribution. Individuals and families living in the New Mexico Conference may also start funds at the Foundation while individuals and families living outside the New Mexico Conference may start funds at the Foundation that will benefit congregations and institutions in the New Mexico Conference.

Every fund is established with a Management Agreement that defines the ways in which assets will be managed. Each Management Agreement is prepared by the Foundation?s staff following initial conversations with representatives from the depositing organization. This includes initial deposit, transfer into a specific managed fund such as the Foundation?s Pooled Investment Fund, management of accumulated interest and earnings, calculation and withdrawal of applicable management fees, and the process for taking distributions. Each Management Agreement is signed by at least two individuals representing the congregation, institution, or agency and two officers of the Foundation.

Monies that are deposited to the Pooled Investment Fund should be long-term or permanent investments that can weather the periodic declines that even balanced portfolios experience. Additions can be made at any time;. Quarterly reports on every fund are sent to persons designated by the depositing organization about the tenth day of January, April, July, and October.

The New Mexico Conference Methodist Foundation provides training for any Permanent Endowment Fund Committee without cost to the congregation. Estate and other special gifts are much more likely to occur when individuals and families have been informed and encouraged to include the church?s ministries in their estate plans. The existence and activity of a Permanent Endowment Fund Committee is a substantial prerequisite for the cultivation of these gifts for endowment. Materials developed by the National Association of United Methodist Foundations have been tailored to serve congregations in the New Mexico Conference as a training resource and will be provided to each member of the committee or foundation board in the training session.

How Do I Request a Distribution from Our Fund?

Unless the management agreement includes other specific directives, an authorized person or persons may submit the request to the Foundation in writing by the 20th of any calendar month. The request must include the signature(s) of the authorized person(s) requesting the distribution. At the conclusion of each calendar month, every fund is valued. Following that process, the distribution is taken from the specified fund, and a check is mailed to the church or institution by the 10th day of the calendar month immediately following the request. Requests by e-mail cannot be accepted because of the absence of an authorized signature. Requests may be sent by mail or facsimile or delivered in person to the Foundation. In some management agreements there is a stipulation that minutes of the meeting at which the distribution is authorized must accompany the request.

Request for Distribution
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