#vaumf

Churches and other ministries are blessed to receive and benefit from bequests and other gifts that create an Endowment.  A donor instructs The Foundation that the interest or earnings be used to benefit a purpose, but the principal or corpus of the fund remain intact.  By law this describes what the state determines to be an Endowment.  In Virginia, the state legislature has adopted the Uniform Prudent Management of Institutional Funds Act (UPMIFA) to help guide the proper investment of such funds as well as assist with guidance in distributing from endowments.

The Foundation helps many churches and ministries invest their endowments properly.  We suggest they diversify - and not put all their eggs in one basket.  Our Balanced Fund offers a low cost, diversified way to reduce risk and provide returns. While investing an endowment properly is important, we have found that proper distributions from an endowment is just as crucial. UPMIFA requires awareness of inflation and suggests the use of a rolling 3-year market value average in making distributions. In other words the spending power of the fund must rise over time to keep up with inflation.

The Foundation manages many Endowments with the purpose of expanding ministry … and we recently received the following note about one such ministry.

We all desire significance—to lead happy and fulfilled lives surrounded by family and friends.

“God moves me.

He moved my Grandfather. He moved my Father.

My grandfather, Roy Duvall, as well as some of my uncles, helped rebuild the current church building in the 1920s. For all I know, he might have laid the 1926 cornerstone. Grandfather literally “sold the farm” to make time to help build the Burnt Factory United Methodist Church (east of Winchester VA).

My father, Jack Duvall, was in the middle of every mission pursued by our beloved church. But my forefathers’ passion wasn’t about Burnt Factory, the building, or even the “church”. Their passion was about sharing the love of Christ with others by providing a place of worship and reaching out to help others find that love.

Today, Burnt Factory UMC is at a critical point—bursting at the seams, if you will. The mission begun by saints who had the vision and an absolute drive to serve their families, community, and above all, God, continues. The handiwork of my Dad and Grandfather is carved into Burnt Factory. Admittedly, it’s sad to think that some of their works may be written over by this new chapter in our church’s life. But I’ve prepared myself by realizing my Dad and Grandfather would prefer to be remembered first as God’s servants and as craftsmen.. That’s a heritage I hold dear!”       -testimony of Mark Duvall, church member, Burnt Factory UMC,        Winchester District

Today the Burnt Factory UMC stands at a crossroads.  Do they simply embrace the heritage of their past?  Or press into the changes needed to create a new legacy for coming generations?

Every local church faces that issue between a focus on their past ministry or building for their future.  For Burnt Factory UMC, a burgeoning attendance in limited space led them to consider all options for a “transformational” decision.  Within the last 7 years, morning worship has grown to two services averaging more than 220 in attendance.  

The Foundation was contacted last summer to consult with their finance and building committees to think and pray through their options in funding a significant expansion to their aging facility.  Pastor Steve Melester was concerned about how much could be expected to be raised in a major capital campaign.  A strategic plan was carefully planned with a major kick-off for the first phase of their “EGI” Campaign - “Estimated Giving Initiative” - set for November 2nd.  Leaders were challenged to pray about what God would impress upon them to give;  families were recruited to consider their investment in future ministry.  A commitment card was distributed throughout the congregation!

It was my privilege to participate in their celebration on a special Legacy Sunday in October.  My role was to challenge the congregation to consider their commitment to creating a lasting legacy into the future for continuing ministry in this growing area of northern Virginia.  A special gift planning seminar was shared with the congregation as they weighed what God was calling them to do in their personal commitment.  Numerous meetings by church committees and periods of personal and corporate prayer led to an exciting announcement for the results of the first phase of the EGI campaign.  More than what had been hoped for was committed in cash and pledges over the next three years to make the planned expansion possible.   

Additional strategic consultation with the church leadership on creating a construction bridge loan for the improvements is being discussed with our new entity - the Virginia United Methodist Development Company, LLC.  Finding ways for people to become involved in the investment/deposit side to underwrite the bridge loan have been an ongoing discussion.