Gift-Planning in the Parish:
An overview of the start-up process
I. Introduction
Once the leadership of a congregation has made a clear commitment to introduce a gift-planning program in the parish, there are a series of very logical steps that can be taken to establish a viable program. An ideal leadership group for this undertaking would be former wardens of the parish. Naming this group the Gift-Planning Task Force will give the effort credibility.
There are three distinct components to a parish-based gift-planning program, and there is a logical (but not rigid) order to putting them in place:
- Structure: the organizational arrangement and policies that govern the management of the "treasure chest"
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- Awareness: the program of activities designed to educate the congregation about planned gift opportunities
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- Response: the formation of the system for assisting individuals in making planned gifts, from initial inquiry, through the process, to proper acknowledgment
A fourth component is often introduced that has impact on each of these three, and that is the formation of a legacy society.
The Episcopal Church Foundation has published a comprehensive manual that is designed to help parish leadership organize a planned giving program for the congregation. The title is, Funding Future Ministry: A comprehensive guide for church leaders to encourage planned gifts in support of Christian ministries. For complete information see Funding Future Ministry.
II. Structure
A. The Organizational Arrangement
The management of the "treasure chest" has to do with all the factors that have a bearing on how assets from planned gifts are received, invested, accumulated, allocated, disbursed, and reported. Facing these concerns, usually a parish will decide to establish an endowment fund to receive and hold these assets as permanent funds; so the balance of this discussion will assume that that decision has been made. The first issue to be addressed then is the organizational arrangement for the oversight, management, and growth of the endowment fund. The preferred structure is a separate committee or board of directors or trustees. When properly selected (and they are usually elected by the vestry), such a group will maintain a focus on the long term and they will understand that their responsibilities include not just the oversight of the endowment fund, but also its growth. In this latter role, they typically would be the governing body for the gift-planning program and become actively involved in the implementation of the program in the parish. As a general rule, the establishment of a separately incorporated entity is not recommended as this can lead to a separate "power center" with too much autonomy, possibly acting in contradiction to the vestry.
The endowment fund and its governing structure normally would be established through a resolution of the vestry, naming the initial board members, their terms, the manner of replacing them, the name of the fund, whether it will function in the manner of a "true endowment," etc. A comprehensive set of guidelines and sample resolutions are available in the manual mentioned above.
Significant attention should be given in this resolution to a statement of purpose. This will reflect the leadership's response to the question, "Why are we doing this?" If parishioners are to be motivated to make provision for the church in their estate plans, the parish leadership must be able to articulate well the purpose of the endowment, with the emphasis on a dear sense of ministry and mission.
B. Endowment Policies
A number of policies and guidelines must be established for a smoothly functioning endowment fund for the long term. The most important of these are discussed below. Again, samples of all these are included in the manual.
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DISPOSITION OF BEQUEST sample...
This policy establishes a protocol governing the disposition of testamentary gifts (any gift that might come to the church through the death of the donor) to clarify the relationship between such gifts and the endowment fund.
- POLICY REGARDING DESIGNATED FUNDS sample...
This policy will determine whether separately identified funds shall be established (i.e.., named, restricted as to use, or both) and the restrictions and guidelines for donors on setting them up.
- INVESTMENT GUIDELINES sample...
These guidelines will govern the investment management function, whether the endowment trustees are using an outside investment manager or not.
- SPENDING RULES AND ALLOCATION GUIDELINES sample...
The guidelines and procedures governing the allocation and disbursement of earnings from the endowment fund and whether "income" or the "total return" principle will be employed to determine funds available for expenditure.
With these various structural features in place, the parish will have a foundation for a successful gift-planning program. It is important to remember that the primary impetus for creating a well-defined structure with responsible, competent oversight is to establish a high level of credibility and confidence in the stewardship and management of the "treasure chest." It is absolutely critical that prospective donors, who may be considering a gift of significant assets to the church, have the assurance that their wishes and intentions will be faithfully carried out and that the church leadership will be good stewards of their gift, both now and in the future.
While formalizing this endowment structure, the parish leadership also would be well advised to establish a gift acceptance policy for the parish. This defines the guidelines and a review process for determining whether the church will accept unusual or out-of-the-ordinary gifts (other than cash or publicly traded securities). The Endowment Board is the ideal group to undertake this task.
III. Awareness
A comprehensive educational plan should be prepared, using a variety of approaches, to increase awareness of planned gift opportunities in the parish. A partial list of activities would include: a letter from the rector formally announcing the program (with a pastoral, not a fund-raising emphasis), articles in parish periodicals, bulletin inserts, printed materials (leaflets, brochures), presentations to parish groups, Sunday morning adult forums, wills clinics or financial planning seminars., quarterly mailings to selected groups, and individual nurturing efforts for a very select group of households. Resources are available through the The Episcopal Diocese of West Texas Legacy Giving Division of the Stewardship Department to help a parish with the educational task.
The important point here is that no single approach is adequate, and a variety of parallel efforts are necessary if you are going to make satisfactory progress. Further, it is critical that everyone involved realize that starting a gift-planning program is not like conducting a capital campaign. In most cases, you do not get quick responses from those you are inviting to make commitments, and you have to be very patient. The educational program has to be established to function on a continuing basis, year after year. However, investing now in a gift-planning effort will provide direct benefits, but primarily for those who will come later. Remember that you are "planting shade trees under which you know you will never sit."
IV. Response
When a member of the congregation expresses interest in considering some type of a deferred gift for the church, it is very important that a clear and systematic process is in place to assist that prospective donor from the initial inquiry through to the completion of a gift. To establish this response system, the leadership needs to designate the parish planned giving contact person, the other resource persons with appropriate technical expertise, and other outside persons and resources who may be available to provide appropriate assistance. Department of Stewardship, Legacy Giving Division and the Episcopal Church Foundation in West Texas are key sources of reliable, professional assistance.
V. A Legacy Society
An effective means of helping donors stay close to the parish and continue to feel good about their estate gift commitments is a legacy society. Such an organization also can help immensely in maintaining an awareness of the gift-planning program in a congregation and encourage new donors. Its main purpose, however, is to provide a tasteful and meaningful vehicle for acknowledging those who have made planned gift commitments and to offer an unpretentious means for them to witness to their very important decision to make provision for the future life and ministry of the church.
Furthermore, the legacy society can be used to give a gift-planning program a "jump start." By establishing a formal dedication date of the society a number of months or a year in advance, those persons can be designated as "founders" who make known their estate provisions prior the dedication date. This provides an incentive for donors to get their arrangements completed and communicated.
An effective way to launch the gift-planning program, once the structure is in place, is to secure the personal commitments of the leaders of the parish who are involved with the program. These would include the clergy, the vestry, the endowment trustees, the gift-planning task force or committee, the financial officers, and anyone else who might appropriately be included. This step is virtually axiomatic in such an undertaking, and once the leadership group has come forward, the parish has a strong start with a substantial group of founders of the legacy society. This provides excellent momentum for launching the gift planning program.
Adapted from A Diocesan Gift-Planning Program - Guidelines for Success
