what is it? THE POWER OF THE CHARITABLE GIFT ENDOWMENT Find out more about Free Will Baptist Foundation at www.fwbgifts.org.

What do you know about the Free Will Baptist Foundation—the planned giving arm of the denomination? The editors of ONE Magazine recently asked retiring Director Bill Evans to answer the following questions about their ministry.

Q. How does the Foundation impact the ministry of the denomination?
A. Perhaps the most significant way is by providing income to various ministries in our denomination.

Q. How much income?
A. Last year the Foundation paid more than $332,000 to national, regional and local Free Will Baptist ministries.

Q. Wow! That’s a lot of money. Where did it come from?
A. Individuals, families, and churches have set up permanent agreements with the Foundation to pay earnings to various ministries every six months until Jesus returns.

Q. So the assets that back these agreements must be pretty significant?
A. Yes. The Foundation manages over $8 million controlled by this type of agreement. Some of those agreements direct us to defer the earnings for a period of years in order to increase the principal.

Q. What are the tax advantages to individuals for this type of gift?
A. Gifts to these arrangements are fully tax deductible.

Q. I suppose individuals like the idea that they can perpetually fund a ministry through their gifts?
A. Yes. Using this trust, individuals can be assured that contributions to their favorite Free Will Baptist ministry will continue, and the perpetual gift has the potential to grow.

Q. You’re kidding. How can it grow? I thought it was a fixed rate.
A. For most agreements the standard policy is that we pay 5%. Earnings above 5% are added back to principal so the payout for the next six months is higher. The agreement is designed so that the principal will keep pace with inflation. The funds are invested in a balanced portfolio of stocks and bonds designed to minimize risk to principal.

Q. Does the Foundation staff choose the investments?
A. No. We leave the day-to-day decisions of choosing investments with a professional.
We have developed an investment policy to provide income with minimal risk. Our job is to monitor the professionals to make sure they follow the policy.

Q. Do you use mutual funds?
A. No. We hire an investment firm because it is more difficult to monitor the activity of a mutual fund. Our investment firm is instructed to not invest in any company that would violate our church covenant, and we monitor all trades to make sure they do so.

Q. Are most of these agreements funded during an individual’s lifetime or upon their death?
A. They are funded both ways. In fact, some individuals fund an arrangement during their lifetime and add to it upon their death. These agreements are a great way for individuals to continually fund their favorite ministry after they have gone to be with the Lord. For instance, if an individual desires to continue giving $1,000 a year to a particular ministry, they can make a bequest from their will to set aside the amount necessary to generate that $1,000 annual gift.

Q. How long have you been managing these gifts and how many agreements do you currently manage?
A. The Foundation was founded in 1980, and we started managing these agreements immediately. We now manage over 80.

Q. You have done a great job describing this agreement. What is it?
A. It is called an endowment.

Q. The idea sounds great. How can someone get more information about endowments?
A. Our interactive website www.fwbgifts.org has additional information. More specific information is offered via email at foundation@nafwb.org or call toll-free (877) 366-7575.

WHAT IS IT?
Are you curious about the item featured in the photograph above? It is a special wood planer used to create large, ornate, crown moldings.