How the Foundation Can Support Your Church
The Virginia United Methodist Foundation (VAUMF) was launched in 1971 to provide stewardship education and manage assets for local churches, districts and agencies of the Virginia United Methodist Conference (VAUMC).
Our mission is to offer support with financial management to the United Methodist churches and organizations within the conference. We offer two types of investment opportunities for churches, one of which is also open to church members. In addition, we also offer mortgage-type loans to churches.
Investment Opportunities for Churches
The first opportunity for churches is to invest in the market.
The Foundation offers four funds, three of which are compliant with the investment guidance in the Book of Discipline. These first three funds are the Stock Fund, Balanced Fund and the Bond Fund.
We partner with a special Merrill Lynch team designed specifically to manage the funds of nonprofit and religion–based organizations like the Foundation. Due to the size and influence of a large market manager, this Merrill Lynch team is able to carefully examine our holdings to ensure compliance with the Book of Discipline (BoD).
The fourth fund includes a mix of stocks and bonds, much like the Balanced Fund, except that it has an alternative component designed to work independently of the overall market to enable greater stability in a down market. Because this portion is complex, changes frequently, and can include real estate and hedge funds, it cannot always be certain of being BoD-compliant.
Market investment funds are available to United Methodist churches and organizations in the Virginia Conference but are not available to individual church members. Churches can decide which funds they select and can move the money between funds. These funds are also where the Foundation invests church endowment funds we manage as well as donor-advised funds.
Planned Giving Program Helps Your Church Members
The Foundation also helps churches with planned giving and can meet with your church about specific planned giving tools, such as:
- Giving appreciated assets like stocks or mutual funds to receive a tax deduction for the donation and to possibly avoid a capital gains tax. This applies to givers of all ages.
- Using required minimum distributions (RMDs) from retirement accounts to give to your church and avoid being taxed on the income
- Setting up a donor-advised fund (DAF)
Loan Opportunities for Churches
The second opportunity to invest is in our subsidiary called the Virginia United Methodist Development Company (DevCo). This organization operates much like a savings and loan, offering investment certificates and savings certificates. DevCo accepts these funds and loans them to churches through mortgage-type loans to build new facilities, renovate a building, add a parsonage, or for major upgrades, etc. The interest received by the Development Company on loans in turn funds the interest rate of our investment and savings certificates.
Individuals Can Also Invest in DevCo Certificates
One big difference between DevCo certificates and the Foundation investments is that individual church members may also invest in DevCo certificates.
Another difference is that the investment certificates have fixed rates for the duration of the term. Current term options range from 6- to 60-month certificates. The rates are fixed and do not fluctuate during the term of the certificate. DevCo certificates can be a suitable place to park short-term funds, rather than investing in stocks when a down market could result in a loss of principal when the short-term funds are needed.
How to Connect With Us
The Foundation is here to support your church or other United Methodist organization. More information is available on our website (VAUMF.org). We are also available to meet with you via phone, Zoom, or our representatives can hold a presentation or sermon at your church about planned giving. Jesus said, “Render unto Caesar what is Caesar’s…” We want to help you make sure it’s not a nickel more!
By the Rev. Brad Duty, Foundation Services Advisor, bradduty@vaumc.org
Images: Maxim Hopman, Precondo & David Vives, courtesy of Unsplash
