Episcopal Church Foundation Vestry Papers - for leading congregations

As the calendar year draws to a close, church leaders have a special opportunity to encourage year-end charitable giving. Not only is this a time when parishioners are reflecting on their faith and generosity, but it's also a moment when they may be considering how their gifts can leave a lasting legacy. For churches managing endowments, the end of the calendar year presents an especially powerful time to invite contributions that will support the mission of the parish for generations to come.

Why Year-End?

The year-end period is a time of heightened generosity. Many individuals are in a charitable mindset, driven by both the holiday season and tax considerations. Additionally, with many other organizations asking for contributions during this period, churches must be proactive in communicating the unique value of supporting their parish's mission. By highlighting how their gifts help sustain the spiritual community, you can make a compelling case for why parishioners should prioritize their church alongside other worthy causes. Whether through direct gifts or planned contributions, these donations can help grow your endowment, providing a stable financial foundation for years to come.

Framing the Message: Connecting Giving to the Long-Term Mission

When crafting year-end messaging, it's important to tie giving to the long-term vision and mission of the church. An endowment is more than a financial tool—it’s a way for parishioners to ensure that the church remains financially healthy and vibrant, not only for the current congregation but for future generations.

Consider framing your message around:

• Legacy and Longevity: Emphasize that contributions to the endowment are gifts that keep on giving. Donors who make endowment gifts are ensuring that your church has the resources to continue its ministry far into the future.
• Sustainability: Highlight the role that the endowment plays in sustaining essential ministries, funding outreach, and maintaining church facilities, which may be challenging to support solely through annual fundraising.
• Impact: Share stories or examples of how your endowment has made a tangible difference in the life of your parish—whether that’s supporting parish outreach efforts, launching a new ministry, or making building repairs. These stories can inspire others to invest in the long-term health of the church.

Encouraging Different Types of Year-End Gifts

For many, year-end giving is an opportunity to maximize their tax benefits while supporting causes they care about. By educating donors on the variety of ways they can contribute to the church, you can increase the likelihood of year-end gifts that benefit your parish’s annual operations and long-term goals, including the growth of your endowment.

1. Gifts of Cash: Simple and direct, cash gifts are the most common year-end donations. Encourage parishioners to consider a year-end contribution that supports both immediate needs and the growth of the endowment fund.
2. Appreciated Securities*: For donors with appreciated stock or other investments, contributing these assets can provide a significant tax advantage. These gifts can support the endowment (or fulfill an annual pledge) while allowing donors to avoid capital gains taxes and claim a charitable deduction on the full market value of the securities.
3. Qualified Charitable Distributions (QCDs): Parishioners aged 70½ and older can make donations directly from their IRAs through QCDs, potentially satisfying required minimum distribution requirements. These gifts can also be directed toward the endowment, offering a tax-efficient way to grow this vital resource.
4. Donor-Advised Funds (DAF) Contributions: Donors with DAFs may wish to make distributions before year-end. Encourage them to consider the church’s endowment fund as a beneficiary for these distributions, helping to build a stable financial future.
5. Legacy Gifts and Bequests: Year-end is an opportune time to remind parishioners to think about including the church in their estate plans. Whether through bequests or other planned gifts, these legacy contributions can play a critical role in growing the church’s endowment.

Take Action Now: Plan for a Successful Year-End Appeal

As a church leader, there are steps you can take now to ensure that your year-end giving approach is effective and impactful:

• Start Early: Begin communicating with parishioners about year-end giving opportunities well before December. This gives potential donors time to consider their options and plan their contributions.
• Clarify the Impact: Make sure your messaging highlights the tangible difference their gifts will make. Show how their contributions will support both current needs and long-term goals through the endowment.
• Highlight Multiple Giving Options: Encourage parishioners to consider various forms of giving, from cash to appreciated securities, and ensure that your church can receive these gifts seamlessly.
• Follow Up: After your initial appeal, send reminders closer to the end of the year. Reinforce the importance of their support during this crucial time and how it will benefit the parish for years to come.

By taking these proactive steps and positioning year-end giving as an opportunity for parishioners to contribute to both immediate needs and the long-term growth of the endowment, you can ensure a successful and impactful year-end campaign. If you would like to learn how ECF can help your year-end giving campaign, contact ECF’s Endowment Management team at [email protected].

*Endowments invested with ECF can easily receive gifts of appreciated securities. Please reach out to [email protected] for a comprehensive guide to securities gifting through your account with ECF.