FAQ – Frequently Asked Questions

Please refer to the following answers to frequently asked questions about the United Methodist Foundation of Indiana.

1832

The soon to be called, Preacher’s Aid Society of Indiana, is created from gifts left by two laymen, Col. James Paxton and Isaac Swearingen. The purpose is to provide assistance to “… the most needy preachers … either effective or superannuated…”

1834

The Preacher’s Aid Society of the Indiana Conference of the Methodist Episcopal Church is officially created.

1844

Indiana Conference of the Methodist Episcopal Church divides into the Indiana and North Indiana Conferences

1852

Methodist Episcopal Church in Indiana divides into four conferences called the Indiana, the Southeastern Indiana, the North Indiana, and the Northwestern Indiana Conferences.

General Questions about the Foundation

What does the Foundation do?
The Foundation’s goal is to strengthen the financial resources which support the mission of the United Methodist Church in Indiana. We achieve this by providing strong educational programs for our clergy and congregations in the areas of stewardship, planned giving development, and strategic investment development and providing funding for ministry through the endowments and trusts managed by the Foundation. We also assist individuals in creating funding vehicles to achieve their ministry goals.
Is the Foundation a charity?
Yes, the Foundation is a 501(c)3 charitable organization created to serve the charitable interest and activities of United Methodist churches and related ministries in Indiana. All gifts made to benefit funds administered by the Foundation qualify as tax deductible charitable gifts.
How does the Foundation serve local churches?
The Foundation serves local churches in a variety of ways:

• We offer training and support for congregations in developing well rounded stewardship ministries, including annual campaigns and planned giving ministry programs at their locations.
• We work with Endowment Committees in creating the charter and policies necessary to properly manage a planned giving ministry.
• We assist churches in further developing their planned giving ministry by providing seminars in their churches on estate planning for their members.
• We provide access to socially screened market based investment funds inaccessible to local congregations.
• We manage, on behalf of many local congregations, charitable gift annuities or charitable trusts established by their church members, or endowment or trusts created to benefit the local congregation.
• We assist local churches in developing an understanding of the process of a capital campaign.
• We consult with local congregations, pastors and treasurers on a wide variety of financial based topics.

How is the United Methodist Foundation related to the Indiana Conference?
The Foundation is separately incorporated from the Indiana UM Conference and is managed by an independent Board of Directors, but supports ministry of the Conference and local UM churches in Indiana.
How can I receive more information about the Foundation?
Click here to contact our President.
Can the Foundation help my church create an endowment program?
Yes, the United Methodist Foundation of Indiana has various resources and personnel dedicated to assisting churches in developing a comprehensive planned giving ministry, including templates of endowment charters and policies for planned giving ministries.
Is there a fee for your services?
It depends on the service provided.  The Foundation is funded primarily through management fees for endowment management and investment management.  There is a small fee for the stewardship mentoring program the Foundation offers. Many services are provided free of charge, including offering seminars at local churches on estate planning and consultation with church leadership on planned giving development and strengthening stewardship in their congregation.
How is the operating budget of the Foundation funded?
The operating budget is funded by income from management fees, and earnings from the Foundation’s own investments. None of the management fees of the Foundation are used to make grants. Grants are generated from endowment funds managed by the Foundation for those specific ministries.
Is the Foundation audited?
Yes, the United Methodist Foundation of Indiana is audited by an independent CPA firm.  For a copy of the most recent audit report, contact the President.
Does the Foundation file a 990 Tax Return?
Yes, the United Methodist Foundation of Indiana (UMFI) files a 990 Informational Tax Return. UMFI is separately incorporated and has a separate IRS tax exemption letter, which necessitates filing a 990 return. For a copy of the most recent 990 return, contact the President.

1864

The Mutual Aid Society is created. It is an organization of ministers that pledge to support the widow or family of deceased ministers.

1867

The Preacher’s Aid Society fund is separated into four parts, following the separation of the Indiana Conferences.

1895

Southeast Indiana and Indiana Conferences unite and the related Preachers’ Aid Societies follow.

1916

The Mutual Aid Society and the Preacher’s Aid Society merger.

Investing through the Foundation

How does my church open an account with the Foundation?

To open a new investment account at the United Methodist Foundation of Indiana, your organization should complete and submit the following two forms which can be found on our resources page.

• ISF Participation Agreement
• ISF New Account Form

Mail your completed ISF Participation Agreement, New Account Opening Form, and check to the Foundation.

Can I invest my personal funds in the investment pool at the Foundation?
No, only UM churches and UM related agencies may invest funds in the market based pools at the Foundation. Individuals can, however, create gift annuities and charitable remainder trusts at the Foundation that will provide annual payments to the individual. Alternatively, individuals can invest in certificates of participation or savings accounts with the IN U.M. Loan & Savings Ministry which are used to provide loans to United Methodist churches in Indiana.
Can the Foundation assist my church in investing our endowment funds?
Yes, the United Methodist Foundation of Indiana has various resources and personnel dedicated to assisting churches in developing a comprehensive investment strategy weighing both the potential risks and returns of various investment options.
Do you offer socially responsible investments?
Yes, the United Methodist Foundation of Indiana offers several funds which are invested in compliance with the Social Principles of the United Methodist Church. We offer one fund that is both environmentally friendly and in compliance with the Social Principles.
Is there a minimum amount to open a new account?
Yes, the minimum amount to open an ISF investment account is $1,000.
Can my church have more than one fund invested with the Foundation?
Absolutely, we encourage churches to establish individual investment accounts for dedicated funds. The United Methodist Foundation of Indiana will create a parent account that links all the ISF investment accounts of a church, but provides separate individual reporting for each account. There is no additional fee for multiple accounts and due to the tiered fee structure, may actually reduce the total fee.
What does ISF stand for?

ISF is short for Investment Service Fund. These are the funds that are available for local congregations to use for investing their endowment or other investible funds.

1916

The first permanent endowment fund is created to fund minister’s support.

 

1939

Methodist Episcopal and Methodist Protestant merge dropping both surnames and “Episcopal.”

1961

Conference-wide program on Wills and Bequests developed.

1968-69

Evangelical United Brethren Church merge with Methodist Church to form United Methodist Church. Preachers’ Aid Society changes their names accordingly.

Giving through the Foundation

Can I give shares of stock to my local church through the Foundation?
Yes. The Foundation offers this service to all our UM local churches and UM related agencies. Click here to read the simple stock transfer instructions.
Can I personally create an endowment at the Foundation for my church or other ministry?
Yes. Many donors create endowments at the Foundation for a particular church, a particular ministry, a scholarship fund, or for the benefit of multiple charitable interests. To learn more click here.
Does a gift given to or managed by the Foundation have to benefit the Foundation?
Absolutely not. In fact, most of the gift funds managed by the Foundation benefit other United Methodist ministries.
Can the Foundation handle a gift that benefits more than one ministry or institution?
Certainly. The Foundation serves as trustee of numerous charitable funds in which the income is distributed to more than one institution or ministry.
Must a gift to the Foundation be designated for a specific ministry?
Not necessarily, it depends upon what the donor wants to accomplish. The designation of gifts may either be broad or specific. Donors have many options in this area, and the Foundation can help donors select the best approach to meet their intentions.
What type of giving plans does the Foundation offer?
You have many options when making a gift. There are three major types of gifts: • You can make an outright gift during your lifetime. The gift is irrevocable, and may be 100% income tax deductible, within limits that may be set by the Federal Government. • You can create a life income agreement. Life income agreements allow you to make a gift during your lifetime and still retain the income from your gift for the remainder of your life. The Foundation offers several life income gift plans, and each can present many benefits. When properly drawn, they are partially tax deductible. • You could create a Donor Advised Fund (DAF). A DAF is funded with an outright gift of cash, stock, or other appreciated property, but allows you the opportunity to support various ministries or projects as you become aware of a need. The gift to create the account is tax deductible in the year the gift is made, but can provide support to ministries over a longer period. • You can make a bequest through your estate either in your will or by assigning the United Methodist Foundation of Indiana as the beneficiary of your IRA, life insurance or annuity. For many, a bequest is an ideal giving plan, because it allows a person to plan a gift to become effective at death. This gift is possibly more substantial than any gift made during the donor’s lifetime. Charitable bequests are generally deductible for estate tax purposes. If you are contemplating a significant gift, or if you’re just curious about how these giving plans work, the Foundation would be pleased to provide additional information.
Does the Foundation accept gifts of real property?
Certainly. Many of the charitable funds we manage were created with gifts of real estate or securities. There can be significant tax advantages to the donor in making a gift of real property or securities rather than cash. The Foundation is prepared to explain these advantages more fully at your request.

1985

Purpose of Foundation expanded to also assist in the charitable, educational and religious purposes and to offer investment opportunities to local churches.

2001

A church loan fund program is created.

2010

The North Indiana and South Indiana Conferences merge.

2011

The Indiana Area United Methodist Foundation, North Indiana United Methodist Foundation and the United Methodist Foundation of South Indiana follow with their merger.

Scholarships & Grants through the Foundation

Can I apply for a scholarship from the Foundation?
The Foundation offers scholarships primarily to seminary students but there are a few scholarships available for undergraduate or other ministry related studies. Visit the ENDOWMENTS page and click on the SCHOLARSHIP button to find out if you’re eligible for funding.
Does the Foundation provide grants to any charity?
No, the Foundation grant program is only available to local United Methodist churches and related United Methodist agencies within the state of Indiana.
Who can apply for a grant?
Anyone affiliated with a United Methodist church or UM related agency in Indiana may apply for a grant from the United Methodist Foundation of Indiana.
What type of grants does the Foundation offer?
The Foundation has some endowments that support specific ministry areas, but the largest fund is unrestricted as to purpose. We fund new and emerging ministries as well as infrequent expenses that a congregation may face. We do not fund operational expenses, including salaries or other recurring costs. The maximum grant offered is $15,000.