The Salem Endowment Fund has been authorized and established by the Congregation of Salem Lutheran Church. The purpose of this fund is to receive and invest gifts and bequests of money, securities, and real or personal property of all kinds for the benefit of the ministry of the Church. The primary objective of the Endowment Fund is to generate income to be used for the work and mission of the Church.

The Endowment Fund is managed and administered by the Salem Endowment Fund Committee. The Committee reviews investments and considers requests for program funding. This Committee is appointed by the Congregation. The Congregation has ultimate control of the Fund policies. The Congregation Council must approve all distribution recommendations made by the Committee. The Committee is responsible for investment decisions.

The funds received are invested with the objective of protecting the principal and maximizing the income. The principal of the Fund is held intact and only the income is distributed each year for benevolent purposes.

The income generated by the Fund is distributed for the following purposes:

1. Capital improvements, debt reduction and building programs of Salem Lutheran Church;
2. Educational scholarships for Church members, Church-related conferences, camping and other training;
3. Community outreach through Church colleges, social service agencies and programs for people in the neighborhood of Salem Lutheran Church; and
4. Missions at home and throughout the world.

Gifts of cash, real estate, securities, life insurance, trust fund, or bequest may be made to the Fund at any time. Contributions to the Fund are tax deductible within the provisions of the federal tax law.

Cash contributions, both large and small, can be given to the Endowment Fund at any time.

A will is an important part of your estate planning. You should have an attorney draw up your will to assure that your property will be distributed after your death in accordance with your wishes. A gift to the Endowment Fund made by will provision could be in the form of cash, securities or real estate. Such gifts are free of federal estate taxes and inheritance taxes. The following suggestions are offered here for discussion with your attorney:

1. General Bequest: “I give and bequeath to Salem Endowment Fund of Salem Lutheran Church, Moline, Illinois, the sum of $XXX (and/or the securities or other property described herein, namely, _____________________).”

2. Residuary Bequest: “All the rest, residue and remainder of my estate, both real and personal, I give, devise, and bequeath to Salem Endowment Fund of Salem Lutheran Church, Moline, Illinois.

3. Contingent Bequest: “In the event (person)______________________ does not survive me, I give, devise, and bequeath such property to Salem Endowment Fund of Salem Lutheran Church, Moline, Illinois.

It is possible to make a gift to the Salem Endowment Fund as a part of a trust agreement. Proceeds from the trust can be directed to the Fund while living, or after death. You should have your attorney draw up your trust agreement to assure that your property will be managed, and your remaining assets distributed after your death, in accordance with your wishes.

Making the Salem Endowment Fund the beneficiary of a life insurance policy enables you to finance a sizable gift by the payment of a relatively small annual premium. Proceeds from a new policy or from an existing policy that has or has not been paid-up may be used for such gifts. In all cases, the Endowment Fund must be named as the irrevocable beneficiary. In that way, the annual premiums that you pay are tax deductible. The proceeds payable to the Fund upon your death are exempt from estate and inheritance taxes.

An endowment fund can be a God-pleasing vehicle for furthering the work of Christ’s Church. Gifts to the Salem Lutheran Church Endowment Fund should be “special” gifts, over and above one’s regular pledge for the on-going ministry of our congregation. If we can make small regular contributions to our endowment, and if faithful Salem members will consider seriously the stewardship of what God has given them in their estate planning, then in years to come our Salem Endowment Fund can be a living force for the Gospel far beyond our congregation’s present means.