Why Invest With the Foundation?

Recently, we heard from a church that had received a bequest they didn’t know what to do with. During our conversation, we also learned that they had some funds that had been sitting idle in an account for a long time. They wanted their money to grow, but money markets are near zero. What should they do?

Your church may be in the same position, and if it is we would like to talk to you. The first question to ask is your plans for the funds. Are they designated for a particular purpose?  Is that purpose short or long-term? Are you willing to accept reasonable market risk to have an opportunity to grow?

A good place for information is the Virginia United Methodist Foundation homepage. We offer four different options to access market-based investments. These are:

1) Stock Fund

2) Balanced Fund

3) Balanced Plus Fund

4) Bond Fund.

Each is invested differently by our advisors based upon our Investment Policy Statement, which is also available on our website. Churches can let the Foundation do the investing for them and have assurance that funds are invested prudently, within United Methodist Church-defined social principles. Many churches put their investments in endowments and only spend a stated percentage of principal annually. Some churches designate proceeds to go to scholarships, some to missions. Every church needs to plan for the future and some churches plan by using their Foundation money to maintain their church. Every church eventually will need a new roof or new heating and air-conditioning. It’s a comfort to know that future needs of the church have been considered in advance.

Many churches have Memorial Funds that sit in checking accounts and draw almost no interest. Take a look at your accounts and decide if you have funds that could be invested more actively. Good stewardship is not only giving but using what you have received. Many churches do not have Endowment committees. People give to Endowments when they know that their money will be invested, and be available for the needs of the church in the future. If your church does not have an Endowment Committee, give us a call. We will be happy to work with your church to help you set up an Endowment Committee.

The Virginia United Methodist Foundation wants all the Virginia churches to be wise investors. If we can help, give us a call at 804-521-1121 or contact us here.

Authors: Tommy Herndon and Bo Bowden