Is there a particular program or ministry at your church, or at a KBC- or SBC-related agency or institution, you would like to support on an on-going basis? One way to do that is to create a perpetual support (endowment) fund, the earnings of which will be used for support of the program or ministry.
The problem with that plan is you may not be able to make a single gift large enough to produce the earnings needed to start or continue the operations of the program or ministry.
The solution … a “flexible endowment fund; an arrangement under which you agree to establish an endowment fund that will, once fully funded, generate sufficient earnings to support the program or ministry in perpetuity. The total principal gift amount will depend on the financial support needed to run the program or ministry and how much of that support you wish to provide through the endowment fund. A timetable for completing the funding of the principal is agreed upon, but there is no actual schedule of payments — when you make the principal gifts during the funding period is up to you.
In addition to your agreement to make principal gifts, you also agree to provide annual “spendable” gifts to the program or ministry so that it will have the funds to operate while you complete the principal funding. The amount of your spendable gift each year is the difference between the earnings generated by the partially-funded endowment and the portion of the annual cost of the program or ministry you have agreed to support.
Flexible endowment funds — a way to provide both immediate and perpetual support for a program or ministry important to you.