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Answers to frequently asked questions are provided for your review. If you don't find the information that you need, please contact the Foundation. The staff is ready to assist you.


back to topAnnual Giving
Q. What is the best way to increase our congregation's annual giving?
A. Stewardship development requires a focused year-round program of inspiration, education and challenge.

Q. Doesn't a year-round stewardship program come across as constantly asking for money?
A. Constant asking is usually necessary because of budget woes, but stewardship development is presenting fresh approaches for growing in giving.

Q. What does the Foundation offer for stewardship development?
A. Through the Foundation's consulting services, we provide a Stewardship Ministry Program that has proven results of growing annual giving.

Q. How does the Foundation charge for the Stewardship Ministry Program?
A. Fees are based on the membership size of the church and the scope of services needed.

Q. What is the average increase in annual giving when the Stewardship Ministry Program is carried out?
A. The first-year average increase is 25 percent and subsequent-year increases vary from 10 to 15 percent, reflecting growing faith and commitment.

Q. Why is the Stewardship Ministry Program more successful than the traditional fund raising methods?
A. It is focused on the Christian's response to God's grace in supporting the ministries of the Church rather than on fund raising for the budget.

Q. What is the best preparation for a future capital funds campaign?
A. Establishing a firm foundation of generous annual giving to support the ministries of the church.

back to topCapital Campaigns
Q. What is a rule of thumb on how much a church can raise in a capital fund campaign?
A. It depends on the project and how willing the church family is to support it. A "homemade" campaign may work for small projects, but a professionally directed campaign always reaps the best results.

Q. With professional guidance, how much could we expect to raise toward our project?
A. Assuming the church family is well informed and committed to the project, a rule of thumb is 1.5 to 2.5 times your annual budget income. It is rare but some churches actually go over three times their annual budget income with gifts and pledges for a project.

Q. Doesn't the cost of a professional consultant take away from the money that could be used for the project?
A. Statistics prove that a professionally directed campaign will result in more money committed for the project. Other costs of a campaign may include meals, printing, postage, audio-visuals, or favors, but these costs are minimal when the church celebrates the campaign victory.

Q. What should we expect the total costs of a campaign would be?
A. The professional consulting fees average $15,000 to $30,000, according to the size of the church and the scope of the campaign. The other costs should be budgeted with the consultant's guidance in keeping with the church family's preferences.

Q. Does the Foundation offer capital campaign assistance to churches?
A. Capital Stewardship programs are one of the Foundation's major consulting services.

Q. How is the consulting fee set for capital campaigns?
A. The fee is based on the average worship attendance and the scope of services needed.

Q. Our church needs to keep campaign expenses low, so can't we do our own campaign and save consulting fees?
A. It is our experience that a "homemade" campaign raises less than half of a professionally guided campaign, and no savings are realized.

Q. Aren't all capital campaigns alike?
A. The Foundation customizes each campaign for each individual church according to its size, financial capability, and the project to be funded.

Q. Is there a guideline to determine how much we can raise in a capital campaign?
A. A congregation will usually pledge 1.5 to three times the amount of its current annual giving.

Q. If we can't raise enough to pay for our project, can we get a loan for the rest?
A. The Foundation makes loans for capital projects and offers special financing allowing for capital pledges as "collateral."

Q. Is there a resource person who can meet with our church to answer our specific questions and help us develop a financial guideline?
A. The staff of the Central Texas Methodist Foundation is always available to assist a church of the Central Texas Conference. Contact the Foundation at 1-800-333-4096 or email ctmf@ctmf.org.

back to topCertificates of Participation (CP)
Current Rates
Q. What is a Certificate of Participation (CP)?
A. A Certificate of Participation (CP) is an interest-yielding investment available exclusively to United Methodist members and United Methodist churches in Texas.

Q. Why does the Central Texas Methodist Foundation
offer a CP?
A. CP funds are used to make loans to United Methodist churches within the Central Texas Conference.

Q. What are the terms of a CP?
A. Individuals and churches may purchase an interest-yielding CP of $1,000 or more with maturity at 1, 2, 3, or 5 years. Check for current rates.

Q. When do investors receive their interest payments?
A. Investors may have their interest compounded quarterly or have it paid quarterly, annually, or when their CPs mature.

Q. May investors choose to reinvest as their CPs mature?
A. Generally, money invested in a CP can continue to be reinvested annually, but the Foundation reserves the right to limit reinvestment from time to time.

Q. How does the Foundation establish the rates
of interest for CPs?
A. The Foundation's Board of Directors considers the rate of interest earned on its current loans and rates of similar investments to set the interest rates for CPs.

Q. How secure is an investment in a CP?
A. The Foundation is an agency of the United Methodist Church, and its investments are not insured like bank deposits or CDs. Under strict guidelines, investment funds are loaned to United Methodist churches in Central Texas and secured by first mortgages on the property and buildings. A liquidity reserve equal to five percent of all investments is maintained at all times.

Q. How are withdrawals handled?
A. Investments may not be withdrawn during the initial investment term until the first maturity date of the CP. After the first term, early withdrawals may be made, but they will have an interest penalty.

Q. Is the interest paid to investors taxable income?
A. Yes. The interest is ordinary income and is taxable just like interest from any similar investment.

Q. Is there a charitable tax deduction for investing in a CP?
A. No. Charitable deductions are not permitted for investments in a CP.

Q. May a husband and wife invest as joint owners of a CP?
A. Yes, as joint owners with rights of survivorship.

Q. How is the offering of a CP made?
A. The offering is made by Offering Circular only and is limited to United Methodists in the State of Texas.

Q. How can I receive an Offering Circular?
A. To receive an application and an Offering Circular, please call, write, or email the Central Texas Methodist Foundation.

Q. What kinds of building projects does the Foundation make loans for?
A. Churches may borrow money for any kind of building or expansion project. Loans have been made to the following churches for building or renovating sanctuaries, education space, parsonages, family life centers, property acquisition, and refinancing debt: Beaukiss UMC, FUMC - Benbrook, Campus Drive UMC, Christ UMC, Cogdell Memorial UMC, Davis Memorial UMC, FUMC - Ennis, Grace UMC, FUMC - Kennedale, Laurel Street UMC, Mt. Zion UMC, Ovilla UMC, Riesel UMC, Smithfield UMC, St. Andrew's UMC, St. James UMC, St. John the Apostle UMC, Union Memorial UMC, Valley Mills UMC, White's Chapel UMC, and FUMC - Woodway.

back to topCharitable Gift Annuities
Go here to determine annuity options
Q. What is a Charitable Gift Annuity?
A. Charitable Gift Annuity (CGA) is a guaranteed life income source and a deferred gift to your church.

Q. How can I purchase a CGA?
A. By making an irrevocable gift of money or property in exchange for a CGA issued by the Central Texas Methodist Foundation.

Q. If I make a gift to receive a CGA, how much will my annuity income be?
A. CGA rates are based on the age of the income recipient. The Foundation uses rates adopted by the American Council on Gift Annuities.

Q. If interest rates change, will my annuity payment fluctuate?
A. No. Your annuity payment is fixed for life, regardless of interest rate changes.

Q. How will my annuity income be taxed?
A. For your life expectancy, part of your annuity income will be ordinary income for tax purposes and part will be a tax-free return of principal.

Q. People are living longer and longer. Could I outlive my annuity?
A. No. CGAs are guaranteed for as long as you live.

Q. When I die, what happens to my annuity?
A. The final beneficiary of your annuity can be your church or one of the ministry funds administered by the Foundation.

Q. Are joint annuities available?
A. Yes. Joint annuities offer slightly lower rates than single annuities, but provide guaranteed income for couples and then to the survivor for life.

Q. How often will I receive my annuity income?
A. You may choose to have your income paid quarterly or annually.

Q. Is the Central Texas Methodist Foundation registered with a government agency?
A. Yes. Charities that issue charitable gift annuities in Texas must register with the Annuities Division of the Texas Department of Insurance in Austin, Texas.

Q. Is a CGA like the commercial annuities offered by an insurance company?
A. No. CGAs are not insurance under the laws of Texas and are not subject to regulation by the Texas Department of Insurance or protected by a guaranty association affiliated with the department.

Q. How are Central Texas Methodist Foundation CGAs guaranteed?
A. All of the assets of the Foundation are pledged to guarantee the annuity agreements.

Q. Can I purchase a CGA with stock or real estate?
A. Yes. Appreciated stock or certain real estate may be used to purchase a CGA, and a portion of the capital gain is reported in your annuity income each year for tax purposes.

Q. Is my CGA income taxable?
A. Part of the income is tax-free and part is taxable as ordinary income.

Q. Is there a minimum age requirement for an investor in a CTMF Foundation annuity?
A. Yes. The Foundation issues CGAs to persons 55 or older.

Q. How long have CGAs been in existence?
A. Methodists and other charitable organizations have been issuing CGAs for over 150 years.

back to topChurch Loans
Q. Is there a guideline to determine the maximum that a church can afford to spend on a building project?
A. Yes. If the church is debt free and wants to stay that way, then it can only afford what the church family will contribute for the project. To supplement designated gifts, financing a portion is usually a good option.

Q. If our church is willing to finance all or part of our project, how do we know how much we can borrow?
A. Using the most current year of budget income, a church should not borrow more than three times that amount; i.e., if budget income is $200,000 the total long-term debt should not exceed $600,000.

Q. Wouldn't the loan interest rate have an impact on how much a church could borrow?
A. Yes, because the church should not commit more than 25 percent of its current budget income for debt service. With $200,000 income, a loan at 6 percent interest rate would provide more borrowing than at a 7 percent rate.

Q. What is the usual length of time for a church to pay on a loan?
A. The Foundation recommends that the church finance for the shortest period possible and stay within the 25 percent of income for debt service. For some projects, the term may be 24 to 36 months; for major projects the term may be for 15 to 20 years.

back to topClergy Council
Q. What is the Clergy Council?
A. The Clergy Council is made up of the active clergy of the Central Texas Conference who advise the Foundation in current local church issues and benefit from Foundation programs.

Q. Who are members of the Clergy Council?
A. All appointed clergy are urged to participate. The function of the Council is primarily for active clergy, but all clergy are welcome.

Q. What is the purpose of the Clergy Council?
A. The Council's purpose is to guide the Foundation in identifying local church issues that the Foundation can help address. The Foundation can then offer timely programs and services to clergy to help meet ministry challenges.

Q. How often does the Clergy Council meet?
A. Each year, two dates and locations are offered for clergy to select one meeting to attend. The meeting format for both of the dates is the same.

Q. What is the format of the Clergy Council meetings?
A. The format varies, but often a working lunch is served while we discuss current local church issues and ways the Foundation can help address the issues. After the session, an optional workshop is presented on a subject clergy have requested.

Q. What is the cost to attend the meetings and workshops?
A. There is no cost for the Clergy Council meetings or workshops, and complimentary lunch is served.

Q. How are clergy advised of meeting dates and times?
A. In advance of each meeting information mailings and reminders are sent to all appointed clergy. The Foundation's Web site, also has information about the Clergy Council.

Q. Is the Clergy Council a part of the Conference structure?
A. No. It is simply an open forum for clergy to offer their insights and guide the Foundation in its role in serving clergy and the Conference.

Q. Who is the Foundation contact person for the Clergy Council?
A. Email Pat Sprayberry-Hall or call her at 817-332-1394
or 800-333-4096.

back to topEndowments
Go here to determine endowment gift options.
Q. What is a permanent endowment used for in a local church?
A. The permanent endowment fund usually supports the maintenance, beautification and expansion of the church properties.

Q. How does a church start a permanent endowment?
A. The Foundation offers complimentary guidance to establish a permanent endowment according to the Discipline.

Q. How much does it cost to start a permanent endowment?
A. Organizing a permanent endowment fund for your church can be accomplished without any expense.

Q. Will gifts to the permanent endowment fund reduce the annual giving for the support of the church?
A. No. The church family often increases annual giving because the permanent endowment demonstrates vision and stability.

Q. Do we need lawyers and accountants to set up and administer a permanent endowment fund?
A. No. A permanent endowment fund is no more complicated than a building fund, a choir fund, or any other fund a church might have.

Q. How much work is involved in starting and growing a permanent endowment fund?
A. The most important work is developing and carrying out an appropriate communications schedule.

Q. How can we educate our church family about the permanent endowment fund?
A. The Foundation can provide a workshop that informs and educates everyone. The Foundation can also help with communication pieces that will help.

Q. What assistance is available for those who want to include our church in their wills or through other giving arrangements?
A. The Central Texas Methodist Foundation provides confidential assistance to individuals considering making these kinds of gifts to your church.

back to topChurch Fund Management
Current Fund Rates
Q. How does the Foundation manage funds for churches?
A. Churches and institutions may deposit money with the Foundation for affordable investment services.

Q. How does the Foundation invest funds for churches?
A. Professionals are engaged to provide the day-to-day investment services under the direction of the Investment Committee and the Foundation provides direct management of some funds.

Q. Is each church account invested separately?
A. No. The Foundation allocates each church account into its common pools for investment purposes. Each church's portion is accounted for separately.

Q. What are the Foundation's common pools for investment purposes?
A. The Growth Stock Fund has an objective of capital appreciation, the Fixed Income Fund has an objective of interest and dividends, the Diversified Fund has an objective of growth of principal and income, and the Church Loan Fund is a stable source of income.

Q. Does the Foundation charge a fee for managing money for churches?
A. Yes. A modest annual administration fee is charged to each investing church.

Q. Are the Foundation's investment pools subject to gains or losses?
A. Yes. The Foundation's investment professionals seek to limit volatility but market risks are a part of the process.

Q. Is there an option that does not have market risks?
A. Yes. The Church Loan Fund offers a stable dollar value without traditional stock and bond market risks. Certificates of Participation also offer fixed rates and no market fluctuation.

Q. Who chooses how a church account will be invested?
A. The Foundation will assist each church in making appropriate choices according to the nature of the funds to be managed.

Q. What kind of funds do churches deposit for investment?
A. The Foundation's investment pools are appropriate for long-term investments such as permanent endowments, building funds, and other kinds of future-use funds. For more information about the Foundation's investment policy, go to church investments.

back to topPlanned Giving
Go here to determine planned giving options.

Q. What does the term "planned giving" refer to?
A. Unlike a gift in the Sunday offering, a planned gift needs more consideration for a personal fit to maximize benefits.

Q. What are some of the benefits of a planned gift?
A. Common benefits are minimizing taxes, increasing personal income, and providing a lasting legacy.

Q. Does the Foundation offer planned giving services?
A. Yes. The Foundation provides confidential assistance in estate administration, charitable trusts and annuities, and a wide variety of custom gift choices.

Q. Is the Foundation qualified to serve as the Trustee of a planned gift?
A. Yes. The Foundation is chartered to administer trusts and is registered to issue and administer charitable gift annuities.

Q. Does the Foundation charge for assistance in arranging a planned gift?
A. No. The Foundation's assistance is complimentary. However, there may be nominal fees for such things as an appraisal or an agreement provided by others.

Q. What about help with will planning?
A. The Foundation will gladly help with will planning and suggest ways to remember Methodist causes.

Q. How does the Foundation work with professional advisers?
A. Attorneys and accountants are always welcome to call for sample language or calculations for planned gift options.