What is the Foundation’s mission? 

The purpose of the First and Calvary Foundation is to strengthen the mission and ministry of First and Calvary Presbyterian Church by receiving, developing, managing and distributing financial resources for the benefit of the Church.  To that end, the First and Calvary Foundation will:

1. Work to encourage and assist individuals and families  in developing their estate stewardship plans and in completing charitable gift and planned giving arrangements;
2. Manage assets under its control to achieve the highest total investment return consistent with prudent risk; and
3. Regularly distribute income, and principal when appropriate, to assist with the programs and ministry of First and Calvary Presbyterian Church.

In 1954 a bequest to First and Calvary Presbyterian Church of $100,000 ($600,000 in 2007$) was made by Ms. M.K. Withall. The Session established a charitable trust for management of the assets.  In 1962 the Foundation was formed by the Session with Articles of Incorporation and By-Laws.  The assets of the charitable trust were rolled into the Foundation’s unrestricted Principal Fund.  Since the beginning, bequests, contributions and memorial gifts to the Foundation have been numerous as well as large and small.  Over the years three restricted funds have been established:  the John T. Bacon Memorial Scholarship Fund, the Christian Youth Activities Fund and the Music Fund. 

How has the Foundation supported First & Calvary Presbyterian Church? 

The unrestricted Principal Fund has been the workhorse of the Foundation.  It has provided loans to the Session (with repayment provisions) for major repairs and capital improvements (notably the expansion and renovation project completed in 2001) totaling over $3.5 million (2007$).  In addition, consistent with the By-Laws, the net income from the Principal Fund is distributed annually to the Session.  Over the years that distribution has provided about $2.8 million (2007 $) for church operations and programs. 

The restricted John T. Bacon Memorial Scholarship Fund (inception in 1948) has been actively used and has supported 20 individuals in their training as seminary students or in preparation for a church vocation.  Approximately $180,000 (2007$) from this fund has been used in support of their training. 

The restricted Christian Youth Activities Fund (inception 1971) has supported interns, purchase of a keyboard and renovation of the youth lounge.  Disbursements in support of these activities has totaled about $80,000 (2007$). 

The restricted Music Fund (inception 1998) has provided $10,000 (2007$) for multi-media equipment. 

What is the financial condition of the Foundation? 

The assets of the Foundation have grown to about $4 million as a result of ongoing contributions and careful management of the investment of its funds.  The assets include $1.7 million in receivables in the form of two loans being repaid by the Session.  The largest loan originally was $3.0 million made from the unrestricted Principal Fund for the expansion and renovation of our church facilities.  The Session has repaid $1.4 million through year-end 2007 primarily through the congregation making payments towards its pledges to the Visions to Reality Capital Campaign.  The goal is to replenish the Principal Fund so that it can be available to provide financial capability for meeting future unknown needs of the Church. 

The restricted John T. Bacon Memorial Scholarship Fund had a value of about $350,000 at year-end 2007.  Income from this fund is adequate to provide support to two to four seminary students and/or interns annually. 

The restricted Christian Youth Activities Fund had a value of about $30,000 at year-end 2007.  This fund has been drawn down from a level of about $80,000.  Additions to this fund are needed to restore its ability to support interns and other major needs of the growing youth component of our congregation. 

The restricted Music Fund had a value of about $25,000 at year-end 2007 which is about its funding level at inception.  It appears to be adequate to handle infrequent requests of support. 

How are assets of the Foundation managed? 

The Foundation has a Board of Directors consisting of five elders that are elected by the Session.  The Senior Pastor and a representative from the Board of Trustees serve as non-voting members.  The Board of Directors has contracted through a competitive process for Trust Company of the Ozarks to provide professional investment services for the assets of the Funds of the Foundation.  The assets are invested by Trust Company of the Ozarks according to an investment allocation approved by the Board.  Reports are provided to the Board of Directors and are reviewed at least quarterly.  The Trust Company of the Ozarks is examined approximately annually by the State of Missouri Division of Finance. The Foundation Board of Directors conducts an outside independent review of its internal transactions and control processes annually. 

The cost of operations of the Foundation amounts to less than 0.6% annually of the value of the invested assets.

Planned Giving 

Planned giving is a thoughtful and careful way for an individual or family unit to give a portion of their accumulated assets, regardless of the size or complexity of the assets, to a worthy cause.  A charity, church, school or other targeted cause that has special meaning to a donor is often the recipient of a portion of an estate.  In some cases, people elect to make their charitable gifts during their lifetime whereas others prefer to implement such gifts at the settlement of their estate.  Regardless, if it is your desire to make such a gift, it is prudent to plan this gift giving to ensure it is effective and will accomplish your wishes. 

What is the relationship between planned giving and estate planning? 

Planned giving is one possible consideration in personal estate planning.  The fundamental goal of estate planning is to ensure efficient disbursement of the accumulated assets (money, property, possessions, etc.) of a lifetime.  For some, this may be as simple and appropriate as having a will that spells out just how these assets are to be distributed and handled.  For others, it may be substantially more complex and require legal, tax and financial advisors to establish a plan.  What is at stake may involve such factors as easing the burden on your heirs, minimizing tax and legal costs, facilitating the speed of estate settlement and ensuring your wishes for planned giving are implemented. 

What factors should be considered in planned giving? 

Key factors in incorporating planned giving into your estate plan are that the “worthy cause” is something you care about, there is a need for the planned gift and the receiving entity has the administrative capacity to effectively use the gift as you would like it to be used.  You may have a particular vision for a new area of support, or a specific issue that you want to support or you simply desire to provide added support to a cause without restriction as to use.  There are many worthwhile causes (cultural, community, church/mission, education, environmental, humanitarian assistance, etc.) that can benefit from your planned giving. 

What is the history of planned giving in the Presbyterian Church? 

Planned giving is a widely accepted practice within the Presbyterian Church.  The history in the United States dates back to 1799.  From that beginning, the Presbyterian Foundation (http://www.presbyterianfoundation.org/) now manages almost $2 billion in assets.  In addition to the Presbyterian Foundation, there are many churches that have foundations or endowments.  In fact, the Presbyterian Church USA supports the Presbyterian Endowment Education & Resource Network (http://www.peernetwork.org/ ) which provides a resource for Presbyterian churches across the United States in their foundation and endowment activities and planning.  They annually hold regional conferences across the country to network ideas and assist development of new foundations or endowments.   

How does First & Calvary Foundation differ from the Presbyterian Foundation? 

The First & Calvary Foundation is focused on the mission and ministry of First & Calvary Presbyterian Church.  Use of funds is directed by the By-Laws and conditions of the three restricted funds.  The Presbyterian Foundation is focused on mission and only manages assets that are directed toward the purpose specified by the donor. 

Are there restrictions on assets the Foundation will agree to manage? 

The Foundation is primarily equipped to accept securities and cash from bequests, contributions and memorial gifts (see Ways to Contribute).  However, real estate and other non-cash assets will be considered on a case-by-case basis.  The Foundation is not equipped to manage planned giving vehicles such as trusts, pooled-income funds, gift annuities or donor-advised funds.  Of course, First & Calvary Foundation would be able to accept securities and/or cash proceeds from any of these vehicles if it is named as beneficiary.  In all cases, the Foundation reserves the right to decline a bequest, contribution or memorial gift if it contains conditions that are not consistent with the By-Laws. 

Are there other organizations that can manage these planned giving vehicles? 

There are other organizations that can provide management of some of the planned giving vehicles mentioned above with First and Calvary Foundation as the designated beneficiary.  The Presbyterian Foundation provides these management services through its subsidiary New Covenant Trust Company (www.newcovenanttrust.com ).  Trust companies, such as our asset manager Trust Company of the Ozarks (www.trustcompanyozarks.com), also provide selected services.  Your legal, tax or financial advisors should be able to provide other suggestions.

What role does the Foundation play in developing a gift giving plan? 

Ways to Contribute 

There are a number of ways to make a gift to the Foundation ranging from outright gifts to life income plans to bequests.  What best suits your personal circumstance and your wish to be a “faithful steward” is an individual matter.  Your legal, tax and financial advisors can help guide you to the appropriate planned giving vehicle.  Your Foundation can help you understand what the needs are or can advise you on creation of a new restricted fund that meets your vision of support for the mission and ministry of First and Calvary Presbyterian Church.  Over the years, most gifts have been directed to the unrestricted Principal Fund because of its ability to respond to unanticipated needs of the Church. 

There are three general categories of planned giving:  living gifts, gifts that provide life income and gifts that flow out of the settlement of an estate.   

Living Gifts 

Cash

Gifts of cash are very often the most convenient way to give to the Foundation and address current needs. There is an immediate income tax benefit in the form of a charitable deduction. 

Gifts in Kind

Gifts in kind are sometimes easier than contributions in cash.  One such method is that of appreciated securities.  If you are considering a gift to the First and Calvary Foundation and have securities which you have owned for more than one year and which have appreciated in value, you could avoid the capital gains tax on the securities and gain the full current fair market value as your living gift to the Church.

For example – Frank and Lottie give securities worth $15,000 for which they paid $5,000.  They receive a $15,000 charitable deduction.  In addition, they avoid the capital gains tax on the $10,000 in increased value of the securities. The Foundation has gained the $15,000 gift to invest and use over the long term for the benefit of the Church. 

Gifts of real estate have been made occasionally.  Because of the special nature of real estate and potential liabilities that may be associated with it, the Foundation reserves the right to decline such gifts. 

Charitable Lead Trusts

A charitable lead trust provides a way to make an ongoing contribution to the Foundation with the principal reverting to you (grantor trust) or to someone else you name (non-grantor trust) at the end of a specified number of years.

For example – You make a $50,000 gift to a 25 year charitable lead trust paying $3,000 per year to the Foundation before the $50,000 passes on to your children.  The gift to your children is valued at a fraction of the $50,000 and it is removed from your estate. 

Gift Plans that Provide Life Income 

Establishment of a charitable remainder trust (annuity or unitrust) is a way to align your lifetime financial needs with your desire to be a “faithful steward” through a future gift to the Foundation.  This involves establishing an irrevocable trust with assets that provides income for you, you and your spouse or another entity.   With the Foundation designated as the beneficiary, the remainder of the assets reverts to the Foundation at the conclusion of the trust.

For example – You and your spouse establish a $100,000 charitable remainder unitrust with the Foundation as beneficiary.  You elect to take 5% of the value of the assets each year to supplement your income.  You receive immediate income tax benefits.  These payments continue through the life of you and your spouse.  At the conclusion of the trust the balance of funds remaining, say, $150,000 after 15 years, is received by the Foundation to provide long term support of the mission and ministry of the Church.  Because the trust is irrevocable, the gift is not considered a part of your estate. 

Because the Foundation is not qualified to handle trusts, you would need to use a trust company, such as the Foundation’s professional asset manager, Trust Company of the Ozarks.  In this case the trust company would provide the necessary fiduciary entity, manage the assets and make the periodic (monthly, quarterly or annual) payment of income.  There are other kinds of plans that can provide income so you should work with your legal, tax or financial advisor in selecting what works best for your situation.  The advantages built into “life income” plans include:

• You can decide who will receive the income.
• You are relieved of the problems of investment management of the assets.
• You may secure substantial current reduction in income taxes.
• You may be able to reduce the value of your estate.

Wills

Your will is legally a last will and testament.  The word “testament” comes from the Scriptures and means “a covenant with God”.  Just as you now give a share of your income to annual stewardship, you can also give a share of the assets you have accumulated over a lifetime.  Some people have given a set amount of their estate whereas others have specified a percentage of the estate. 

Life Insurance Policies

If you have a life insurance policy no longer needed for your family’s protection, it can be assigned to First & Calvary Foundation by simply making the Foundation your beneficiary.  If the assignment is irrevocable the premiums may become fully tax deductible, and the Foundation and the mission and ministry of the Church will benefit from your gift in the future.  Your insurance agent can explain how this plan works. 

Transfer Instructions 

Following are general transfer instructions to the four accounts currently available to receive funds on behalf of the Foundation.  These instructions can be used in the event you wish to make an outright gift or can be made available to your legal, tax and financial advisors for incorporation into the planned giving portion of your estate plan.  In addition, when a gift is made a confirming letter to First & Calvary Foundation at 820 East Cherry St, Springfield, MO 65806 would help ensure proper recognition of the gift. 

Asset Transfer Instructions (General instructions for all Foundation funds)

Physical delivery: checks, certificates of deposit, notes, stock certificates, documents, deeds, etc. 

      Trust Company of the Ozarks

      1517 E. Bradford Parkway

      Springfield, MO  65804 

Account Name  (See Below*)

Donor Name  ______________________ 

Instructions for wire transfers or transfer of DTC eligible securities, FED book entries and GNMA’s can be obtained by calling Trust Company of the Ozarks at (417) 890-7770. 

*The Foundation fund names and corresponding Trust Company of the Ozarks account names are as follows:

Foundation Fund Name                                          Trust Company of the Ozarks Acct Name

Principal Fund                                                           First & Calvary Presbyterian Church Fund

John T. Bacon Memorial Scholarship Fund                Bacon Memorial Scholarship Fund

Music Fund                                                               First & Calvary Music Fund

Christian Youth Activities Fund                                 Christian Youth Activities Fund

Policies 

Policy for Ethical Conduct 

The policy of the First and Calvary Presbyterian Foundation is to comply with all governmental laws, rules, and regulations applicable to its business.  Furthermore, it is the policy of the Foundation to rigorously follow the Articles of Incorporation and By-Laws.  Conduct will be further guided by Policies of the Foundation and the Mission Statement of First and Calvary Presbyterian Church. 

It is the Foundation’s policy that all transactions will be accurately reflected in its records.  Falsification of books and records and the creation or maintenance of any off-the-record accounts are strictly prohibited.  Foundation Board members are expected to be honest and forthcoming with the Foundation’s independent auditors. 

It is the Foundation’s policy to make accurate and honest public communications. 

Foundation Board members and ex-officio members will avoid any actual or apparent conflict of interest between their own personal interests and the interests of the Foundation. This includes, but is not limited to, their dealings with church members, church staff, the asset manager and the professional community which provides services related to planned giving.  This specifically precludes investment of funds in any asset which is owned or controlled by any Foundation Board member or member of the Session.  Furthermore, this policy prohibits loan of any of the funds of the Foundation to any Foundation Board member or member of the Session. 

The needs of prospective donors will be given higher priority than the needs of the Foundation, even if this results in a smaller contribution or no contribution.  At no time will a prospective donor be subjected to any pressure to contribute.  The Foundation will advise prospective donors to obtain independent professional advice and assistance, as appropriate, in evaluating and implementing specific planned giving actions that benefit the Foundation. 

The Foundation will treat donor and prospective donor information as confidential.  Donors, or their heirs, will be consulted and approval secured before gifts are made public.  Donor requests for anonymity will be diligently honored, related records will be secured and the asset manager will be given special instructions regarding the requirement for anonymity.  The anonymity will be maintained except where the law otherwise provides access, such as, where information is ordered disclosed by a court. 

The Foundation members and its ex-officio members will review this Policy for Ethical Conduct at least annually.

Disclaimer

When considering charitable giving, you should talk with your tax, legal or financial advisor.  The First and Calvary Foundation does not render tax, legal or other professional advisory services.

Contact Us

If you would like to learn more about the Foundation please call the church office at 862-5068, email us at foundation@facdcpres.org or fill out and submit the form below. A member of the Board of Directors will be happy to call you. 

Click Here for the Form to Contact the Foundation 

Board of Directors Members (2007)

Jan Baumgartner

Charlie Lyons

Tad Moseley

Steve Scott

Alice Yancey