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Types of Accounts

We will work with you to design an account that best fits the needs and circumstances of your ministry. 

Types of Accounts

Endowment Accounts

An Endowment Account distributes income to the church while the principal is allowed to grow.  Endowments can encourage additional donations because of their permanence and their evidence that the church believes in its future. When your church or ministry receives a bequest, you might consider creating an endowment fund to honor the donor’s memory and to put in writing any donor restrictions on the gift. 

Hybrid Accounts

Some accounts do not fit the specific definition of either an endowment or a custodial account. A hybrid account at the Foundation combines the benefits of an endowment with the flexibility of a custodial account.  A ministry can set aside the principal of the fund, spending only the income, but retain access to the entire account in case of emergency or unexpected need.

Custodial Accounts

The entire market value of a custodial account is available for distribution to the church or ministry on demand. You can also set up automatic, periodic distributions of a certain amount or percentage of the fund.  There are no maturity dates and no penalties for withdrawals.  The church can take advantage of the investment management opportunities offered by The Foundation and still have the funds available for current ministries.  This is an especially useful tool for Reserve Funds.

 

Benefits of all accounts:

The Foundation will design an account to meet the needs of your ministry. Whether it is an endowment fund, a custodial account, or a hybrid account, all Foundation accounts offer:

  1. Wide Diversification -- Funds are invested with a a wide diversification of assets.
  2. Choice of Investment Fund -- Investors can choose from four Investment Funds, each with a different exposure to stocks and bonds.  See this page for more information
  3. Reasonable Returns for a Low Fee -- The Foundation is a 501(c)(3) not-for-profit corporation. Our administrative fee is 75 bps (0.75% of the market value of the fund per year). There are no other transaction fees, and no penalties. All reporting is net of fees. 
  4. Sustainable Investing-- We believe it is important to invest with our Christian values in mind and look to the Social Principles of the United Methodist Church for guidance. Therefore, we exclude investments in corporations whose major revenues are derived from alcohol, tobacco, gambling, weapons, pornography, and private prisons.  In addition to  negative screening, we practice sustainable Investing and make an effort to invest in companies that have a positive record of care for the environment, good social practices, and good governance. 

Please contact us for more information.

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