What is endowment?
Endowment is a way to build funds today in order to have resources tomorrow. With endowment, gifts are invested, churches and ministry organizations receive income, and funds are managed to maintain their long-term value.
Why is endowment important?
Finances may follow the roller coaster of the economy, but they don’t have to be at the mercy of a boom or bust cycle. The Old Testament story of Joseph is a biblical example. The counselor to Pharaoh of Egypt, Joseph created a plan that churches and ministry organizations can adopt. He led the country to store grain for seven good harvest years so that they would have enough when seven years of drought followed.
How can endowment benefit churches and ministry organizations?
- Endowment builds funds that produce perpetual income.
- Endowment funds provide a way to wisely manage unexpected gifts.
- Endowment funds provide for ministry beyond regular budget items.
Endowment has been used by churches to support missions, scholarships, building maintenance, outreach, benevolent care and more. Ministry organizations frequently develop general endowment funds that can be used to support any aspect of their work.
Contact MBF to learn how churches and ministry organizations can establish and develop endowment.