From generation to generation, Kenilworth Union Church has been supported by the financial contributions of those persons and families who believed our church was important to their lives.
The Endowment Fund benefits our church in three distinct ways:
- As a legacy for future generations of our church... to ensure the ministries of our church will continue to be strong and adequately funded as our church grows.
- As opportunity funds for new initiatives... to provide funding, outside of the annual operating budget, for new program initiatives and opportunities that will enhance the life and teachings of our church.
- As a contingency financial resource...to cover short term costs for unexpected circumstances.
Kenilworth Union Church is important in special ways to each of our children, our community and us. The church has grown over the generations to be the special place of faith that it is through the many who made a financial commitment to its mission and programs we now enjoy.
We invite your consideration of including our church in your financial planning to ensure that our family of faith continues to go strongly forward.
Endowment Fund Questions and Answers
What is the Endowment Fund?
It is a reserve of capital invested for growth and income. The assets of the Fund are set aside and permanently invested, so that only the interest on the principal is made available for funding church programs and ministries.
How does the Fund grow?
The Fund grows through careful investing and appreciation generated from investments. The Fund also grows through gifts, memorials and bequests.
Why should I contribute to the Endowment Fund?
We are a community who know the importance of planning and investing to assure the stability, vitality and future of our church. Your contribution to the Endowment Fund of Kenilworth Union Church is an expression of faith, of generosity, and of gratitude for all the blessings of KUC.
How can I contribute to the Endowment Fund?
There is a number of ways to contribute to the Endowment Fund. A listing of different ways in which you can contribute are outlined below.
Outright Gifts
Appreciated Securities
Stock or mutual fund shares that have gained in value can be transferred to the church as is, rather than sold. You may receive an income tax deduction based on the full fair market value and not have to pay tax on the capital gain.
Life Insurance Policies
You may find that you have a life insurance policy that once protected your family against loss of its breadwinner, but which is no longer needed for that purpose. If the policy is given to the church, you may receive an income tax deduction for its cash surrender value.
Real Estate
Realty that has become a burden can be given to the church. A tax deduction is allowed for its appraised value, and capital gain tax may be avoided.
Cash
A number of gifts in the past have occurred when, and because, the donor had received an unexpected bequest or other financial windfall and wished to share the blessing as an Endowment gift. Others have sent a check in memory of dear friends or family.
Deferred Outright Gifts
Last Will and Testament
A donor can designate certain assets or a percentage of their estate to the Endowment Fund.
Life Insurance, Retirement Benefits
Life insurance policies, annuity contracts and retirement plans (pension, 401K, IRA's) all pay out future funds in accordance with beneficiary designations. You can name the church as beneficiary. Planned gifts to the church are free of income tax.
Residence, with Retained Use
Your residence at the time of death will usually be an asset that your children will not want to keep and will find inconvenient to deal with. It could therefore be an excellent choice for a gift to the church by your Will.
Deferred Gifts with Important Benefits to the Donor
A number of gift options make payments for life to the donor or other beneficiary, with Kenilworth Union Church receiving the fund balance on termination. In each case: the gift gives an income tax deduction; funding with appreciated assets avoids or defers capital gains tax; and each can significantly increase a donor's current income.
Charitable Remainder Trusts
A trust can be drafted to the donor's needs, especially for personalizing investment control. The annuity trust form pays a fixed annual amount (not less than 5% of the initial gift value). The annuity will normally be set at less than a Charitable Gift Annuity would pay on a similar gift, but the income tax deduction will be higher and the church's remainder should be larger. The unitrust form pays the named beneficiary a selected percentage (not less than 5%) of the trust value, revalued each year. If and as the asset values increase over time, the annual payout will increase, thus giving protection against inflation. After a set number of years, or at the death of the donor, the remainder of the trust would be paid to Kenilworth Union Church's Endowment Fund. These trusts are generally not for small gifts, it would likely take a $100,000 fund to make it economic.
Charitable Life Trust
This trust is similar to a Charitable Remainder Trust except that the trust income would be paid each year to the Endowment Fund of Kenilworth Union Church. Upon the death of the donor(s), the trust remainder would be paid to the donor(s) beneficiaries.
A Final Word
Kenilworth Union Church cannot give legal or tax advice, for which you should consult your own advisor. However, members of the Stewardship Committee who are knowledgeable about giving options are available to discuss with you any questions you may have.
The Stewardship Committee invites you to inquire further if you are interested in any one area of charitable giving to the church. We recommend that you consult with your legal and financial advisors to learn about the specific advantages of any contribution you may consider.
For additional information, please contact:
Reverend Ben Bishop, Executive Minister 847-853-2005
Karen Spagnola, Business Manager 847-853-2003
Lori Flignor, Controller 847-853-2006