Endowments at Ministries 0903-03 ZZfwi

                     TO:  Ministry Leaders for Board Consideration                                  FROM: Jim Bramer, Retired CPA-Auditor
                                                                                                                                               FILE:  0903-03/fwi

                      RE:  Endowments at Ministries                                                               Originated in December 1999       


 Endowments at Ministries

   Endowments at Ministries usually involve at least the following:

  •     The proceeds (often called Corpus or Principal) are financial resources that can not be spent now ..... they are "nest eggs."
  •     The yield (Investment Income) therefrom is available for understood Ministry operational purposes.
  •     Endowment resources come from either alive or deceased Donors and the yield is used as requested by the Donor.
  •     Quasi Endowments come from Board discretionary financial resources and, of course, the yield is used as the Board determines, etc.
  •     The Board should have an "Investment"  criteria or agreed policy at they prudently care for this responsibility.

     In order to get a grasp of Endowments, please  Go Here  for some information and then   Click Here  and obtain some perspective of some Endowments at a Mission Organization. Endowments involve at least the following:

     Philosophical Aspects

    Not long ago I was at a board meeting where Endowment  topics were discussed --- especially Quasi-Endowment issues. One savvy Ministry business man board member voiced some philosophical concerns. This person's thinking included:

  •   Be fully aware of the 'tyranny of the urgent' issues,  whereby you do not plan ahead well.

  •   This Ministry is attempting to meet urgent needs and there never seems to be enough money to do the job.

  •   The Lord's return is imminent --- we must use every resource we now have to reach as many unsaved now as possible. Have a "Do Ministry Now" mentality and not dwell on the future.

  •   So all Board discretionary monies should be spent now for ongoing Ministry purposes and not "nest egged".

    Church and non local member Ministries like Schools, Mission Agencies and Camps are not alike. Their Ministry targets are different; some are more oriented to training the Saved, while others are more pointed to evangelizing the Lost. Obviously, such differences will contribute to your philosophy on this topic as Ministry funding takes place.
    Some of you have "earned income,", or non donation, aspects of your Ministry.   It is entirely possible that such board discretionary "net earnings" can be utilized to fund applicable
  Quasi-Endowments.

            My Thesis Includes the Following:

              Final Thrust:

Endowments are resources the Ministry should prayerfully pursue.

               CLICK HERE  for a list of of our "For What it is Worth" Editorials or Online documents.

        KEEP  LOOKING  UP !!


       UPTD: June 08, 2012  

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