Glossary of Stewardship Terms, Part 2: Long Term Stewardship

Q: When is a good time to think about Planned Giving for your congregation? A: All year long – yes, that was a trick question. Some congregations do not have an active Long Term Stewardship program, so let’s hope this set of words help spur some interest, since a good time to get started or improve is – always!

Long Term Stewardship

I started using the phrase Long Term Stewardship program for two reasons:

1. Because the congregation must consciously think long-term about the sustainability and vibrancy of the congregation. There are a number of congregational aspects to include in this long-term thinking (see #2). Members also consider their stewardship of the congregation, and financial planning, in the long term.
2. The term is also useful as an umbrella, under which a cluster of congregational elements, related to a long-time horizon, might be grouped: the endowment (its structure, investments, policies and procedures, etc.); gift acceptance and recognition policies; donor intent form and donor agreements; planned giving program and its volunteers; memorial events, garden, artwork, and/or plaques; building and grounds maintenance projections, and the historical archive. These must be aligned for the program to be successful and lasting

Endowment

Here is a simple definition: money set aside for long-term uses. There are True Endowments, from which none of the “corpus” (original assets) can be withdrawn, dictated by the terms of the gift or the policies related to that fund. If your endowment is a True Endowment, only the earnings from that invested corpus can be used. Most UU congregations have Quasi-Endowments, which means they are restricted by a board resolution or policy that can be changed, so some corpus may be used in certain circumstances.

Does this sound like policies are needed to dictate these things? Yes! Two important things to remember: you can have invested funds that are not held as part of your endowment, and you can have more than one fund in your endowment for different purposes and with different policies applied to each fund. We recommend you consider investing your endowment funds in the UU Common Endowment Fund (UUCEF).

The UU Common Endowment Fund (UUCEF) does amazing justice work using endowed funds from the UUA and UU congregations across the country, through their wise and skillful investing program. Check them out! https://uucef.org/

Planned Gifts

A planned gift is one where the donor’s intention is to contribute a gift that requires some special planning, often with the assistance of a financial professional (financial planner, lawyer, philanthropy planner, accountant, fundraising professional). The most common of these is a bequest through a will, however there are many other ways you can make a planned gift – like a gift annuity, charitable remainder trust, or naming your congregation as the beneficiary of an investment account.

Planned gifts are differentiated from “major gifts”, because planned gifts often extend beyond the donor’s lifetime, even if they may have elements that occur while they are alive. In instances where the gift is planned and then actually given after the donor has passed away, that is usually called a Legacy Gift.

A planned gift is usually the largest and last gift that a member will give to your congregation. It is often intensely meaningful for those congregants. You need to honor that with everything you do.

Planned Giving Programs

A planned giving program is a year-round effort, less intense than a pledge drive or capital campaign. You never know when people are going to change their financial plans or revise their wills, so consistent communication will remind folks about the congregation when that time arrives for them. A planned giving program educates and informs, celebrates, provides opportunities, and asks.

This can include a legacy society: a special group with occasional social or educational events, for those who have included the congregation in their Long Term Stewardship planning. Many congregations either do not have an active planned giving program or do very little, although the topic is so important to many of your members, and can make a significant difference in your congregation’s finances.

The UUA website has pages of good materials on planned giving that you can use. https://www.uua.org/topic-0 We, at S4Us can also help you with any of the aspects listed on this page. Just let us know!

Recognition

It is important to recognize gifts, that is acknowledge them to the donor – warmly and personally, as well as in writing. Recognition can also include publishing their name in a list with other contributors. Although some planned gifts can be changed (are revocable) and some cannot (are legally binding), it is important to acknowledge that intent or gift. Some congregations are resistant to recognition – “are we elitist?” – yet these gifts can be transformative to the donor and to the congregation. Thank, thank, thank, thank!

And public recognition both teaches about these types of gifts and can inspire others to give. Donors and potential donors always need to be asked what level of public acknowledgement they want. Your recognition policies and processes should include both “gift intents” (the congregation has been informed that a planned gift has been set up) and “realized gifts” (the planned donation has been received).

Thank you to Joan Smith for suggesting the theme for this Part 2 of our Glossary! Are there other terms you would like to see defined and discussed? Maybe ones you feel are misused, misunderstood, or confused with other words? Leave a comment or send us an email and we may continue to grow this glossary!