Episcopal Church Foundation Vestry Papers - for leading congregations

How often does your endowment committee step back and take a good look at your endowment? At this time of the year, a mid-year check-in to review policies and plans as well as investment performance is an easy way to stay anchored in what your endowment is intended to accomplish. With this review, the committee can also help ensure that everyone involved with the endowment is aligned heading into the second half of the year. This six-question mid-year check-in will help your committee reflect on what’s working, identify any gaps, and prepare for the rest of the year.

1. Have we reviewed the endowment’s investment performance recently?

Mid-year is a good time to look at how your endowment portfolio has performed over various time periods. Ask your investment manager for added clarity if needed. Keep in mind that markets go up and down and that endowments are invested for the long term. Use this check-in to understand how recent market trends have affected your portfolio, how your portfolio is expected to perform under those conditions, and whether your portfolio remains in line with future goals.

2. Do we need to revisit our spending policy?

Many organizations aim to distribute around 4-5% of the endowment each year. A thoughtful spending
policy helps preserve your endowment for the future while also providing support for your church or organization’s current priorities. Mid-year is a smart time to check that actual and planned endowment distributions still meet your current needs and are sustainable for the long term.

3. Have we looked at our Investment Policy Statement (IPS) recently?

If your church or organization has modified its priorities or experienced major financial changes, for example a significant gift or bequest, or alternatively an expanding budget shortfall, it may be useful to review your IPS. This document should clearly outline how your endowment is managed, invested, and used. Staying anchored in this document while also keeping it current ensures that your decisions are transparent and consistent with your goals. It's good practice to review your IPS once a year, but if circumstances change, you may need to do so at mid-year.

4. Have we communicated about the endowment to church leaders and the congregation this year?

Consider sharing specifics about how the endowment supports your church or organization and the impact that this funding has had. Whether it’s a quick update in the bulletin, a report to the vestry, or a minute for mission, sharing the endowment's purpose and impact builds trust and visibility. It helps church members and perhaps the wider community see the value of the endowment.

5. Have you set goals for endowment giving this year or do you need to revisit the goals you have already set?

Do you have a plan to invite legacy gifts or increase donations to your endowment? Think about what stories, events, or milestones could inspire giving. Also consider how to raise endowment awareness during the summer, when attendance and participation may shift due to vacation and travel. Summer is also a great time to start to plan for the year-end giving season in the fall and winter. Think expansively about how your endowment can connect to general stewardship efforts.

6. Are all our leaders on the same page about the endowment?

A mid-year check-in helps the endowment committee, finance committee, clergy, and vestry understand how the endowment functions and what it supports. Without shared understanding, confusion can occur. Some leaders may not realize what the endowment can or cannot be used for due to donor restrictions, while others may not understand how the endowment fits into the church’s larger financial plan.

Are you doing a mid-year check? We can help.

We offer educational materials, sample endowment policies, and endowment giving guidance and would be pleased to talk with you about how they might be useful at your church or organization. Email [email protected] and let us know how we can help.