GROWING FUTURE SUPPORT FOR COMMITTEES InFaith Community Foundation Welcome and introduction. Today, I will be sharing ways to grow a source of future support through an endowment. These opportunities are available to you through InFaith Community Foundation, a charitable giving partner of Thrivent Financial. InFaith Community Foundation, a faith-based public charity separate from Thrivent, works nationally to help people give to their favorite charities and causes. As background, this presentation is not designed to provide tax, legal or accounting advice. Our purpose today is to review the wide variety of giving options available to you. You will want to consult with qualified legal and tax professionals before acting on any legal or tax information provided in this presentation.

ONE GIFT. MANY BENEFITS. GROWING FUTURE SUPPORT “Years from now, a gift I have given will be of service to others.” InFaith donor, Shirley Paulson Stewardship is something we are called to live out – it’s an opportunity to give back in response to the blessings we have received. An endowment ensures our gifts will keep giving for years to come.

BUILDING A PLACE THAT LASTS. GROWING FUTURE SUPPORT “We believe it’s critical for organizations to have continual support on a yearly basis.” InFaith donors, Jim & Sandy Thomas Ongoing annual support allows organizations to plan for the future and engage in strategic planning for its mission.

OVERVIEW Today we’ll discuss how an endowment fund can help sustain your church or faith-based nonprofit’s mission well into the future: Role of endowment fund How an endowment fund works Support from InFaith Giving options Today’s presentation will cover many different ways your organization can benefit from an endowment fund at InFaith Community Foundation. We’ll discuss different ways your supporters can give to the endowment fund, as well as resources provided by InFaith to help grow your endowment fund.

THE ROLE OF AN ENDOWMENT Your organization’s finances are similar in concept to your personal finances—you have short-, mid- and long-term financial needs To better understand the purpose and role of an endowment, let’s put it in the context of personal finances, which must cover our short, mid and long-term financial needs.

YOUR PERSONAL FINANCES 401k Plan Short-Term Needs: Living Expenses Long-Term Needs: Retirement & Estate Planning Mid-Term Needs: Major Purchases With our personal finances, we need to plan for day-to-day living expenses and major purchases such as our home and car. We also need a plan for the future – for our retirement and the estate we build throughout our lives. Each is supported through different assets – short-term living expenses come out of our income, for major purchases we may set aside savings over time, and for long-term needs we invest assets we expect will grow over time. The same is true for an organization’s finances. (review slide)

YOUR ORGANIZATION’S FINANCES Endowment Short-Term Needs: Annual Fund Long-Term Needs: Endowment Fund Mid-Term Needs: Capital Campaign Organizations also have short, medium and long-term financial needs. We support the on-going operations through annual fund or stewardship campaign, there may be a special capital campaign for a new building or a start-up project, and an endowment fund offers a means of addressing the long-term needs and interests of the organization. (review slide)

ALL GROW CONCURRENTLY Cash from Income Pledged Assets & Savings Retirement & Estate Planning Endowment Annual Fund Capital Campaign Endowment And because supporters give to these various needs in different ways -- short term needs through gifts out of income, to larger capital projects from accumulated assets, and to endowment through legacy giving – they don’t compete with each other, and all can grow concurrently.

HOW AN ENDOWMENT FUND WORKS Gifts ($) from supporters Support ($) from the Organization Personal & Tax Benefits Distributions How does an endowment fund at InFaith Community Foundation work? Gifts from your organization and your organization’s supporters can go to your endowment at InFaith. Individuals who make gifts to the endowment receive the personal satisfaction of supporting your future mission and maximum tax benefits based on when and how their gifts were made. The church or faith-based nonprofit requests distributions from the endowment to support the organization’s mission.

AN ENDOWMENT FUND AT INFAITH Sound fiscal management Flexibility Administrative support Marketing support Planned giving expertise Privacy for organizations and supporters Full range of giving options for supporters Why consider InFaith Community Foundation for your organization’s endowment fund? Let’s look more closely at these benefits … (option to read bullets, but will go into each one in detail)

SOUND FISCAL MANAGEMENT Benefit from large investment pool and economies of scale Results-driven investment strategies Expert advice by leading U.S. investment consultant, Cambridge Associates Consistent high ratings for sound fiscal management by Charity Navigator & GuideStar InFaith Community Foundation is known for its fiscal management, receiving awards from GuideStar for sound stewardship. InFaith offers both large and small investment pools, providing for results driven and personalized investment strategies. Through their partnership with Cambridge Associates, they are provided expert advice in the investment industry.

FLEXIBILITY You determine timing of distributions and how they’re used Option for general endowment, special-purpose funds and other programs as needed Ability to customize allocation among portfolios The Foundation allows ultimate giving flexibility to fit your needs; depending on how and when you want to give. Ultimate flexibility provides for many giving options, from different types of donor funds to one-time gifts with recurring distributions.

ADMINISTRATIVE SUPPORT Quarterly reports and online fund access Recordkeeping and investment updates Annual independent audit Assets are not subject to claims against your organization as they’re technically owned by InFaith InFaith supports you at every step of your giving journey, providing ultimate administrative support of your giving. As a donor at InFaith, you’ll receive quarterly investment reports and access to your fund online. (read rest of slide).

MARKETING SUPPORT Support promoting and growing endowment Marketing kit for your endowment, including: Bulletin inserts Social media posts Newsletter articles Sample mailings Customized endowment brochure With an endowment fund through InFaith, you are provided with many resources to help build and market your endowment fund. These include our marketing toolkit, which you will receive a hard copy of and a link to the online resource, where you can copy and paste pre-written and designed marketing resources. You also receive direct support from our Donor Services and Communications team whenever you have questions about helping market your endowment fund.

PLANNED GIVING EXPERTISE Gift planning assistance to supporters and their financial representatives Personal consultations Educational resources Webinars & workshop support Their dedicated and knowledgeable team of InFaith Gift Planners can answer any questions you may have and guide you through different giving options. (read bullets).

YOUR PRIVACY Supporters can work directly with InFaith to make gifts Supporters have the option to give to the endowment fund anonymously, with IRS-required tax documentation sent direct from InFaith InFaith does not sell or exchange supporter names The Foundation allows individuals to give in their name, or give anonymously, and your wishes are respected. (read bullets)

COMMITTING TO THE FUTURE Endowments grow more quickly with additional gifts than by investment return InFaith offers a full range of giving options for supporters Although endowment funds are typically invested with growth of the asset in mind, the fund will grow more quickly with additional gifts than by investment return alone. For this reason, InFaith Community Foundation offers a full range of services to help organization grow through additional gifts. More about these services a minute.

FULL RANGE OF GIVING OPTIONS Give Now with cash, securities, qualified charitable distributions and real estate Give Later with bequest, beneficiary proceeds, life insurance or life estate reserved Give & Receive with lifetime income with charitable gift annuities or charitable remainder trusts To help you understand all of the charitable giving opportunities, let’s break it down into three categories: Give Now, Give Later and Give & Receive. Each of these giving methods may benefit your endowment fund. (read slide)

(Click to Play) InFaith offers customized charitable solutions based on your specific financial needs and charitable interests. (show video)

WAYS TO GIVE Give Now. Give Later. Give & Receive. Let’s start with the most familiar type of giving – direct gifts. Your supporters can make a direct gift of cash, appreciated securities, such as stocks or mutual funds or even real estate, and receive tax benefits. These gifts to InFaith can be directed to your endowment fund.

ENDOWMENT FUND SUPPORT GIVE NOW Supporters of your organization can make outright charitable gifts InFaith will work with your supporters to fulfill their giving wishes to your organization’s endowment fund SUPPORTERS CHARITABLE GIFTS ENDOWMENT FUND SUPPORT Give Now is one of the ways your supporters can begin charitable giving at InFaith Community Foundation. Supporters may give through cash, publicly-traded securities, closely-held stock or real estate. InFaith will work with supporters to fulfill their giving wishes to your organization’s endowment fund. Supporters can give anonymously, if they wish. Another way to give now strategically is by using a Qualified Charitable Distribution, if you’re 70-1/2 or older you may distribute up to $100,000 a year from your IRA directly to charity, without having to claim the income on your taxes.  And, any such qualified charitable distribution you make, counts towards your required minimum distribution.  So if you’re concerned about taking RMDs because of the way it affects your tax bill, you might consider making a qualified charitable distribution to a charitable fund at InFaith.

WAYS TO GIVE Give Now. Give Later. Give & Receive. Now let’s talk about another familiar type of giving – gifts benefiting charities after a person’s lifetime, something we call “Give Later”. People can make a gift of life insurance or name your endowment the beneficiary of an IRA or other retirement plan, annuity or life insurance policy. Like a direct gift, “Give Later” gifts can be directed to your organization’s endowment fund or to a donor advised fund with grants going to your endowment. In turn, the donor’s estate may receive tax benefits.

GIVE LATER Supporters can make deferred charitable gifts, retaining flexibility and control of the asset while living Why give later? Supporters retain control of assets while living and make a significant charitable gift upon death “Give Later” gifts are one of the popular giving options because many supporters need or want the flexibility to use their assets while living and also want to support the charities and causes that are important in their lives. These types of gifts are appealing because it can be accomplished by updating a supporter’s beneficiary form or adding a few additional sentences to a will or trust that directs their assets to the Church or faith-based nonprofit’s Endowment Fund.

GIVE LATER Life Insurance An affordable way for supporters to make future charitable gifts Supporters receive a charitable tax deduction for premiums Supporters can either create a new contract or transfer an existing one Most of us know how life insurance can be used to benefit our loved ones upon our death. The same principle of life insurance can be used to make a substantial gift to your endowment. By naming InFaith the owner and beneficiary of a charitable life insurance contract, people receive a charitable deduction for ongoing premiums. While most choose to pay premiums with cash, they can also use appreciated stock to bypass a capital gains tax. There are also tax benefits to giving a paid-up life insurance contract that is no longer needed.

GIVE LATER Life Insurance The Donors: A couple in their 50s wants to create a permanent scholarship, from their church’s endowment fund, for Christian school students with an existing life insurance contract of $250,000 Their Gift: The couple assigns the contract to InFaith and their future premiums are tax deductible Two InFaith donors wanted to give a gift of life insurance to their church’s endowment fund, with the goal of creating a permanent scholarship for Christian school students. To do so, they worked with InFaith to make a gift of life insurance.

GIVE LATER Life Insurance Their Lasting Impact: Upon death, life insurance proceeds go to their church’s Endowment Fund to provide scholarships for students of the Christian school. As InFaith owns the life insurance contract for the benefit of endowment, you do not need to assume the administrative burden of monitoring the life insurance contract or collecting gifts to pay ongoing premiums. The person making the gift also has the option to remain anonymous to the organization, if that’s their wish.

GIVE LATER Beneficiary Proceeds Give an IRA or other retirement plan, annuity or life insurance upon death Designate all or a portion for a future gift Receive an estate tax deduction Maintain control of the gift assets while living Donors can designate your endowment as the beneficiary on IRAs, tax-sheltered annuities, or 401(k) or 403(b) plans. By doing so, they can avoid income, estate and generation-skipping taxes.

WAYS TO GIVE Give Now. Give Later. Give & Receive. Now let’s talk about gifts that generate an income to the person making the gift and supports charities after their lifetime. We call these gifts “Give & Receive” gifts.

(Click to Play) (play video)

GIVE & RECEIVE Supporters can make charitable gifts, and in turn, receive ongoing income payments Why Give & Receive? Convert assets to ongoing income payments and benefit charities upon death Two options—charitable gift annuity or charitable remainder trust This giving option can generate an income stream to the person making the gift or another, with charitable contribution to your endowment fund upon death. Depending upon the asset and type of payment desired, the donor may choose to establish a charitable gift annuity or a charitable remainder trust. InFaith’s Gift Planners are available to consult with endowment supporters to choose the best solution based on their interests and circumstances.

GIVE & RECEIVE Charitable Gift Annuity Give cash or securities and receive fixed income payments for life Receive an immediate charitable deduction, plus a portion of the income is typically tax free Gift annuities, one of the most popular charitable giving tools in the U.S., provide tax benefits and a lifetime income to the giver or someone he/she names. Upon the death of the income recipient, the remainder benefits your endowment at InFaith. The donor receives an immediate charitable tax deduction and a portion of the income is free from income tax. The minimum for gift annuities is $10,000. Payments can begin immediately or be deferred.

GIVE & RECEIVE Charitable Gift Annuity The Donors: A couple, ages 65 and 67, want to give to their church’s endowment and supplement their retirement income Their Gift: They create a charitable gift annuity at InFaith with $50,000. They receive a charitable income tax deduction of $10,763, as well as $2,150 a year in income payments for life (4.3%) Payout rates, charitable deductions and other benefits vary based on a number of factors. The gift annuity has been the second most popular form of gift over the years at InFaith. It’s often an attractive alternative for people who own a low performing money market fund or CD, need to supplement retirement income and want to give to charity.

GIVE & RECEIVE Charitable Gift Annuity Their lasting impact: Upon their deaths, the remainder of the charitable gift annuity is directed to the church’s endowment fund to provide long-lasting support When the donors passed, the remainder of the charitable gift annuity is directed to the church’s endowment fund to provide long-lasting support.

ONE ORGANIZATION’S STORY The Church: A church celebrating its 90th anniversary wanted to commemorate the event by creating an endowment Endowment Mission: Expand the church’s outreach into the community A church was celebrating its 90th anniversary and wanted to commemorate the event by creating an endowment fund through InFaith Community Foundation to support their organization long into the future. They created an endowment fund at InFaith, with the mission of expanding the church’s outreach into the local community.

PUTTING IT TOGETHER An endowment offers long-term support for your mission & provides a way for supporters to express generosity, faith and values Together with InFaith Community Foundation: Giving flexibility Trusted stewardship Exceptional service Values grounded in faith (read slide) As we’ve seen today, wise planning can help people support your organization’s future in ways that match their interests and financial circumstances.

GIVING IS POSSIBILITIES Create a vision for your endowment fund—dream big and then focus Consider near and long-term projects—make your endowment fund real for your organization Share your endowment fund’s stories Promote giving to your endowment Celebrate each and every distribution to your organization’s community An endowment fund for your church or faith-based nonprofit is an excellent tool to support your organization well into the future. It allows for current and future support for your organization’s needs. It also allows community members a way to give to your organization other than the weekly giving they already may do.

YOUR BEST SOLUTION What is your endowment fund’s mission? How distributions be used? What types of gifts will you seek? How will you raise awareness of your endowment fund? InFaith Community Foundation is your organization’s best solution for your endowment fund. We can help you answer these questions: What is your endowment fund’s mission? How distributions be used? What types of gifts will you seek? How will you raise awareness of your endowment fund?

Together, we can grow an endowment fund to serve your future mission Together, we can help you create a strategy that matches your objectives, resources and mission.

Thank you. Questions?