Leave your Legacy for the Future of Your Church
An Enduring Act of Love and Commitment
First United Methodist Church Plano supports a Permanent Endowment Fund (PEF). Donors who contribute to the PEF positively impact the Church ministry and mission programs in perpetuity.
Who administers the fund?
The Permanent Endowment Fund Committee (PEFC) makes recommendations on how the PEF’s earnings will be distributed and used.
Our investment philosophy is to maximize return on assets by exercising an appropriate level of risk; providing income for the benefit of the church ministries, missions and facilities and honoring a donor’s intent for the gift and growth of their investment into perpetuity.
The PEF is maintained by First United Methodist Church Plano in investments determined from time to time by the PEFC.
What is a planned gift?
A planned gift to the church is a financial gift structured to serve the needs of the church as well as the donor (e.g., tax deductions) made during one’s lifetime, usually as part of a will.
What makes this gift different from other forms of church giving?
Our PEF is a fund where typically only its earnings will be spent. When funds are available and distributed, they will support projects above and beyond normal budgeted items. Most giving concentrates on church needs for the following year. The PEF focuses on church needs into the long-term future.
Are these gifts tax deductible?
Yes, subject to your tax advisor’s recommendation. Your gifts to the PEF are deductible for federal income tax purposes. Bequests, life income gifts, and other donations of value are generally exempt from federal estate and gift taxes. Consult your tax advisor about the changing tax laws.
What kinds of gifts can be made
to our PEF?*
There are many types of gifts that could benefit our PEF. A few of these are:
A gift directed to the church from your will, living trust, etc.;
Beneficiary designation on a life insurance policy, IRA, or certificate of deposit;
Stocks and bonds and;
Personal and real estate property.
And yes, the PEF accepts cash.
Is my gift too small?
Because all gifts are pooled in the PEF, they have a cumulative effect making even the smallest gift significant. Every gift contributes to the overall growth of the principal amount, which compounds the return on investments.
Are PEF accounts restricted?
Yes. The Fund must have at least one million dollars and only a portion of the interest can be spent. The rest of the earnings goes back into the Fund. This has a compounding effect and ensures the continued life of the Fund.
*Subject to PEFC approval, where they may request the donor to provide certain documentation or studies depending on the asset donated.