Online Archives

| Leadership Days |

| UM Foundation |

The United Methodist Foundation of the Baltimore-Washington Conference is a registered investment advisor licensed by the Maryland Office of the Insurance Commissioner to offer charitable gift annuities and pooled income funds. 

For information, contact the Rev. Terry Leckrone at (800) 492-2525, Ext. 480 or

UMs gave $1.2 million in new charitable trusts

BY LINDA WORTHINGTON
UMCONNECTION STAFF

A conference ministry recently received an unexpected check for $5,000 for its work with youth in Zimbabwe. It was a gift from the earnings of an endowment fund established by a church member through the United Methodist Foundation.

The foundation has managed local congregations endowment funds since it was established in 1977. Increasingly the foundation is expanding programs to help individual United Methodists invest their assets in mission and ministry, according to the Rev. Terry Leckrone, the foundations executive director. 

A member of Wards Chapel UMC in Randallstown wanted to see the money hed earned during his lifetime go to worthy causes. Before his death, he set up an individual endowment fund with the help of the foundation.

Each year the foundations trustees decide which ministries will benefit from his endowment, based on his interests. One of these ministries was the United Methodist youth work in Zimbabwe.

Endowment funds are the best way for United Methodists to assure that their accumulated lifetime assets will support ministry after they are gone, according to Leckrone. Theyre simpler, less expensive, and require less legal time, he said. But the foundation offers other services for United Methodists with special needs.

The most common alternative to an endowment fund is a charitable trust, which allows donors to receive income from the fund during their lifetime, Leckrone said. Through charitable trusts, United Methodists can support their churches and favorite ministries. And their gifts keep giving even after their deaths, he added.

United Methodists have entrusted the foundation with $1.2 million in new charitable funds in the past six months. This represents a significant increase in the planned giving aspect of the foundations work. Each gift plan is different, each is tailored to meet the individuals needs and requests, Leckrone said. 

The foundation recently established a charitable trust for a woman who wants to support the Methodist Home in Washington, D.C. She had $368,000 to invest, Lekcrone said. During her lifetime she will receive income from the trust. After her death the Methodist Home will receive the remainder. 

Another United Methodist wanted to make sure that her nephew would have an income while at the same time supporting ministry. The foundation set up a charitable gift annuity so that the nephew will receive an annual income; then, when he dies, whatever remains will support United Methodist ministry.

One member of a Baltimore congregation where mission is regularly emphasized has designated investments currently worth $300,000 in his will as a charitable trust, according to Leckrone. At the time of the donors death, the fund will be managed by the foundation to support United Methodist ministry and mission according to his instructions. Meanwhile, the investments are expected to continue to grow and may double in value during the next decade. 

Not only does an individuals charitable trust or endowment benefit the churches or charities of choice, but such arrangements also benefit the donor directly. Donors can often receive tax benefits. Estate taxes can be lowered, capital gains can be eliminated and charitable deductions can be carried over for as many as five years, Leckrone said.

Americas aging population is on the threshold of passing on $10.4 trillion in assets during the next 40 years, according to the Banking Journal. 

Its important that churches keep before their members the opportunity to perpetuate vital ministries through endowments and planned gifts, the Rev. Lon Chesnutt, president of the foundations board of directors, said in its 2001 annual report. 

Anyone can do this, Leckrone said. You can support your local church or any United Methodist ministry through a bequest or other planned gifts.

Planned giving is not just for people with a lot of money, Leckrone emphasized. Almost anybody can leave $100 in their will and, in an urban church, $100 could make the different between no Vacation Bible School and an excellent summer program.