St. Kieran Catholic Church Endowment Fund
Frequently Ask Questions
Introduction to the St. Kieran Parish Endowment Fund
St. Kieran Parish, with the approval of the Parish Finance Council and Stewardship Commission established the St. Kieran Catholic Church Endowment Fund in 2018. The purpose of the St. Kieran Endowment Fund is to provide for the future needs of parish as determined at the time by the St. Kieran Endowment Committee which is made up of the pastor and three appointed members of the Parish Finance Council. The endowment provides a way for donors to contribute to a diversified revenue source that will benefit the parish into the future. The initial amount to found the Fund came from the St. Kieran Changing Lives Together initiative in the amount of $100,000.
What is an endowment?
An endowment is a pool of charitable capital that is permanently invested. It is a fund that is made up of gifts and bequests that has been created to provide a continual source of income for St. Kieran Parish. The principal of the endowment is typically not invaded. The perspective of holding an endowment is very long-term as these are funds that are given in perpetuity to support the parish. Investment earnings are used to grow the fund and to provide the beneficiary, St. Kieran Parish, with ongoing financial support. The earnings on the investments are distributed in a process called grants. Gifts may be given in the form of immediate gifts such as cash, real estate, stocks and bonds – or in the form of future gifts through wills and bequests or as a designated beneficiary of a life insurance plan,
retirement plan or IRA.
Why have an endowment?
An endowment is an important element to secure the future of the parish. Msgr. Johnson has compared our endowment to retirement savings or social security for an individual, in this case the money contributed is invested for the future needs of the parish with only a portion of the annual income from the investments taken for the ongoing needs of the parish. Initially, we might determine to not take any distributions over a number of years to allow the endowment to grow.
What is the benefit of establishing an endowment rather than giving directly to my parish?
An endowment stays permanently invested. An outright gift of cash is depleted over time. An endowed gift is administered based upon an irrevocable legal agreement. You can be assured that your donations will be invested and only a portion of the earnings from that investment will be used for the needs of the parish. Thus your gift will provide a perpetual source of support for the church. The endowment guarantees the donors that the principal of the gift is never disturbed and the earnings will forever come to St. Kieran Parish
Who will oversee our parish endowment?
The Catholic Foundation of Michigan has been selected by St. Kieran to provide for the administration and investment as well as grant distribution for our endowment fund. Our endowment investments will be pooled with other charitable funds which will help to reduce costs and ensure that the parish endowment is used in accord with purposes for which the parish has established it. Further information about the Catholic Foundation of Michigan is available at www.CatholicFoundationMichigan.org. Catholic Foundation of Michigan is paid a fee for their investment management and administration of the endowment. At the Parish the fund is run by the Pastor and a committee of three parishioners appointed by the Pastor. This committee’s main function is determining the use of the annual distribution.
How is the annual distribution determined and how can the annual distribution be used?
The purpose of the Endowment is for the support of St. Kieran Catholic Church. The Catholic Foundation of Michigan board of directors determines the amount of the annual distribution based on the performance of the Foundation. The Endowment committee can use all or a portion of the distribution for the support of St. Kieran Catholic Church. Any unused part of the distribution is reinvested in the Endowment and becomes part of the Corpus of the Endowment.
What type of donations can be made to the Endowment?
The Endowment can accept several types of donations. In addition, to regular donation; donations can also be made as a memorial or bequeath from a will or trust. Donations can be made in the form of Cash, Life Insurance Proceeds, Appreciated Stock or Real Estate. Donors should check with their own financial advisors as to how the donation is to be made.
What are the tax benefits of donating to the Endowment?
The Catholic Foundation of Michigan is a 501 (c)(3) and donations qualify for a deduction on your income or estate taxes. Benefits may include an itemized deduction, avoiding taxes on your required minimum distribution or reduction of your estate tax. You should consult your personal tax advisor for information on these tax matters.
How do I donate to the Endowment?
All donations for the Endowment are made through Catholic Foundation of Michigan. Checks made payable to Catholic Foundation of Michigan with St. Kieran Catholic Church Endowment on the memo line. For all other donation contact Catholic Foundation of Michigan. Catholic Foundation of Michigan’s address is: 1143 W. Long Lake Road, Suite 201, Bloomfield Hills, MI 48302. Their phone number is (248)204-0332 and website www.CatholicFoundationMichigan.org .