Episcopal Church Foundation Vestry Papers - for leading congregations

The vestry gathers for their monthly meeting. On the agenda: a proposal establishing an endowment fund to help secure the church’s long-term future. Some vestry members express enthusiasm, recognizing the potential for financial stability. Others, however, are hesitant. “If we start an endowment, won’t people think they don’t need to contribute to the stewardship campaign anymore?” one member asks. Another adds, “I’ve seen churches that became so reliant on their endowment that they stopped prioritizing stewardship altogether.”

This scenario plays out in many congregations. Church leaders want to encourage long-term financial sustainability, but they fear that emphasizing endowment giving might undercut annual giving. The key to overcoming this challenge is not to avoid the conversation but to frame it intentionally, ensuring that parishioners understand that financial stewardship is about participation in God’s mission today and in the future.

Through our work in church endowment management, we’ve seen firsthand that how a church communicates about its endowment significantly impacts donor behavior. If church leaders treat the endowment as a financial safety net, members will inevitably wonder if their annual gifts are still needed. But when endowments are framed as a foundation rather than a replacement for annual giving, congregations can embrace both with enthusiasm.

The Both-And Approach: Annual and Endowment Giving Work Together

Endowment giving and annual giving serve different but equally important purposes. Annual giving is the lifeblood of the church’s current operations, ensuring that worship, mission work, and daily expenses are met. Endowment gifts, on the other hand, are an investment in the future, providing ongoing income that helps sustain the church’s ministry for generations to come.

A healthy church recognizes that both types of giving are essential. Framing the conversation as a both-and approach—rather than either-or—helps parishioners understand that these gifts serve distinct roles in the church’s financial well-being.

How to Frame the Conversation

When talking about endowment giving, it’s important to communicate its purpose in a way that reinforces, rather than undermines, the importance of annual giving. Consider these key messages:

1. Endowment gifts are an extension of a donor’s lifetime generosity.
   • Parishioners who faithfully support the church each year often appreciate the opportunity to leave a legacy that continues beyond their lifetime.
   • Phrasing such as “Your endowment gift ensures that the ministries you care about today will continue for future generations” reinforces the idea that these gifts sustain, not replace, ongoing ministry.
2. Endowment gifts provide stability, but annual gifts sustain today’s ministry.
   • Unlike annual giving, whose sole purpose is to fund immediate needs, endowment distributions are designed to provide long-term financial support.
   • Using an analogy can be helpful: “Annual giving is like the food we need to nourish us each day, while endowment giving is like planting a tree that will bear fruit for years to come.”
3. Encourage people to think beyond their current contributions.
   • Many churches offer ways for members to make planned gifts while continuing their annual giving. Options such as bequests, charitable gift annuities, or donor-advised funds allow individuals to support both immediate and future needs.
   • Churches can highlight stories of members who have made both types of contributions to show that it’s not an either-or decision.

Common Objections & How to Address Them

Objection: “If the church has an endowment, why do we need to give every year?”

Response: Endowment funds provide long-term stability, but they are not meant to replace annual giving. Most endowments are structured to provide a small percentage (typically 2-5%) of their total value each year, which is not enough to cover all operating expenses. Ongoing annual support ensures the church can meet immediate needs.

Objection: “I’d rather give while I’m alive than leave money when I’m gone.”

Response: Many donors do both! Giving annually supports the church today, while an endowment gift ensures that their generosity continues beyond their lifetime. Additionally, planned gifts may be structured to allow for giving now while still benefiting the endowment in the future.

Objection: “Talking about endowment gifts feels like asking for money after someone’s gone.”

Response: Endowment gifts are about creating a lasting impact. They allow parishioners to express their values and commitment to the church in a way that extends their influence beyond their lifetime. It’s not about giving after death—it’s about shaping the church’s future today.

How to Communicate Without Creating Confusion

To ensure that endowment messaging supports annual giving, churches should:

• Time their communications wisely. If your church runs an annual stewardship campaign in the fall, consider emphasizing endowment giving at a different time of year.
• Use clear and distinct language. Avoid phrases that imply endowment gifts replace annual gifts. Instead, emphasize that both are needed.
• Share impact stories. Highlight how endowment funds have strengthened the church’s mission while reaffirming the ongoing need for annual support.
• Offer multiple giving options. Provide pathways for members to support the church now and in the future, such as recurring annual pledges, planned giving vehicles, and special campaign opportunities.

Forward-Thinking Stewardship

At the core of this conversation is a simple truth: church endowments should be seen as a tool for stability, not an excuse for complacency. The most successful churches approach stewardship with intentionality, recognizing that financial sustainability requires both ongoing gifts and forward-thinking generosity.

Church leaders can successfully encourage endowment gifts without discouraging annual giving by presenting a holistic view of generosity. By helping parishioners see that their giving today fuels ministry in the present, while endowment gifts ensure the church’s future, leaders can foster a culture of stewardship that embraces both.

By intentionally shaping this message, churches can strengthen both annual and long-term giving, ensuring that they continue to serve their congregations and communities for generations to come.

Move Forward with Confidence

If you're navigating how to talk about endowment giving in your congregation, know this: you’re not alone—and you don’t have to figure it out by trial and error. Clarity in your message builds trust. And trust builds generosity.

When you communicate the purpose and promise of endowment giving alongside the vital role of annual support, you create a culture of generosity rooted in faith and forward-thinking. That clarity doesn’t just strengthen your messaging—it strengthens your mission.

The Episcopal Church Foundation specializes in helping churches develop strong endowment strategies that enhance, rather than compete with, annual giving. If your church is looking for guidance on how to establish, grow, or communicate about its endowment, ECF can help.

Reach out to ECF’s endowment management team at [email protected] to learn more about how your church can create a sustainable financial future while strengthening annual stewardship today.