An Endowment Policy is important for 3 reasons:
- The Endowment Policy should encourage individuals in the congregation to prayerfully consider remembering the church in their estate plans. Members are more likely to remember the church in their estate plans if they know the church has a plan in place to use these funds for ministry.
- Large gifts to the church can be divisive. If there is a policy in place before you receive this kind of gift there will be less derision.
- If a church receives a large gift the congregation may not feel the need to give. They need to give for their own spiritual, emotional and physical well being. With a policy in place the church can say "We are not rich, the funds we have are used for a specific purpose and if you do not support the church financially, we will not be able to do ministry. "
Spending Policy Options