Endowment Funds

Endowment Fund–The Endowment Fund is an integral part of First United Methodist Church of Redding and was established in 1995 as a perpetual trust. As a non-profit endowment fund, it accepts gifts, small and large, from numerous sources including individuals, families, businesses and other groups. Six directors and four ex-officio members of The Endowment Board invest contributions for the various funds to obtain the highest level of income consistent with preserving and building the original principle of your gift.

How It Works–Contributions, such as gifts, memorials, wills, and trusts, to the Endowment Fund become a part of endowed trusts–never to be spent. Only the earned income from the fund may be used to help the church and others in years to come. You, as a donor, may select how your gift may be used. You may choose from the following fund options:

Unrestricted Fund–used for any purpose consistent with the mission of the church.
Property Fund–used for building, purchase of land or restoration.
Program Fund–used for development and expansion of music, adult and child ministries.
Missions Fund–used for community outreach.
Scholarship Fund–used for education scholarships and grants

Examples of Giving Options

Cash Gifts–Making a cash gift is quite easy. You can simply write a check or use the Electronic Giving portion of this web site. But it is important to make sure that you follow the requirements of the IRS in order to receive your appropriate tax savings for your gift. A cash gift saves tax at your top tax rate. For example, if you are in the 33% tax bracket, then a gift of $100 produces a charitable deduction of that amount. Multiplying the $100 times your 33% tax bracket produces an actual tax savings of $33. Of course, in some states you will also save state income taxes.

Your gift by check may be mailed to the church. If you place the check in the U.S. mail by December 31 of the year and the check clears–or use Electronic Giving and the transaction clears by December 31–it can be deducted (if you itemize deducations) for that year even though the church receives the check next year. (Read More)

Gifts of Stock and Mutual Funds–Because many stocks and mutual funds, as well as exchange-tranded funds (ETF's) have increased in value over time, you may hold stocks and mutual funds with substantial appreciation. If you're considering a major gift or end-of-year gift, a gift of public company stock or mutual funds to a church provides two major benefits. First, there is a charitable deduction for the value of the stock or mutual fund. Second, the church does not pay tax on the sale of the stock or mutual fund, so you bypass the capital gain.

Two fairly common reasons for making a substantial gift of stock and mutual funds are that you may have sold an appreciated asset with a large capital gain or you have good income. If you have a large gain or substantial income, you may want to offset that gain or income with a charitable deduction through a gift of stock or mutual fund shares. Because you receive both the charitable deduction and a bypass of capital gains tax, there is a double benefit for your gift of stock or mutual fund shares. (Read More)

Bequests by Will–Including a bequest to your church in your Will is the most widely used form of gift. Some people decide on a certain dollar amount and others specify a percentage of their estate.

Charitable Remainder Trusts–Property is placed in trust which names the church to receive distribution of the property at the end of the trust. A tax deduction is allowed for a portion of the assets placed in the trust. Income is paid to the donor or designee based on the terms of the trust agreement.

Life Insurance–These policies provide a means of making a larger gift than one ever expected would be possible. A tax deduction equivalent to the cash value of the policy is allowed.

Life-Estate Contract–This option allows the donor to give a home while continuing to reside in the home for the rest of their life. A tax deduction is allowed for the value of the property.

Gifts of Land/Buildings–Many friends of churches have benefited from a gift of land or a gift of land with a building or other structure. There are two main benefits for this gift. First, there is a charitable deduction, normally for the fair-market value at the time of the gift. Second, if the real estate has appreciated, the gift to a qualified public charity or a church bypasses or avoids the capital gains tax.

The combination of a substantial charitable deduction and a bypass of capital gain is an excellent double benefit. Many donors who sell other property or have substantial income will be able to use this charitable deduction to reduce their income taxes. (Read More)