ENDOWMENT FUND

Today’s mission. Tomorrow’s mission. The mission 80 years from today.

Our church is on a mission. It’s not just about our work today—though that’s why most of us do our giving. It’s not even about our building that needs ongoing care. It’s about creating a durable church foundation that’s here for generations to come.

Endowments provide long-term, sustainable funding for institutions, allowing them to support their missions and programs without relying solely on annual funding. Please keep HLC Endowment Fund in mind as you think of ways to give. The fund can be listed in a will or trust, or you can give a one-time donation.

For more information related to the endowment fund, you can reach out to any committee member: Wade Bakke, Stacie Hinrichs, James Boeshans, Mark Redepening, or Mischelle Hagerty. More information is also available in our corporate bylaws under article 12, as well as in the FAQ Section listed below.

Thanks for your consideration and support.

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Hawley Lutheran Church Endowment Fund FAQ

• 1. What is a church endowment fund?

A church endowment fund is a permanent investment fund designed to support the

longterm mission and ministries of the church. The original gifts (the “principal”) are

invested, and only a portion of the fund’s balance may be used each year to support

ministry, outreach, and facility needs. This allows the fund to grow and serve the church

for generations.

• 2. Why does our church need an endowment fund?

Our church’s endowment fund is a dedicated, longterm investment that supports the

mission and ministry of our congregation far into the future. While annual giving sustains

today’s ministries, the endowment strengthens tomorrow’s - providing stability,

resources, and the ability to grow new opportunities for faith and service.

• 3. How is the endowment fund different from the annual operating budget?

The annual operating budget pays for current year expenses (staff, utilities, programs,

etc.). The endowment is focused on the future — it grows over time and distributes only a

portion of its earnings, not the principal.

• 4. Who manages the endowment fund?

HLC elects an endowment team consisting of five voting disciples of the congregation,

each of whom serve for three years. The responsibility of these stewards is to

administer the fund on behalf of the congregation and under the supervision of the

Vision Council as well as:

• Receive donations

• Report to Vision Council and at the annual meeting

• Provide records to the HLC audit committee upon request

• Educate the congregation on the HLC Endowment Fund options

• Manage distribution of funds

• 5. What happens to the money I give and how are funds managed?

Your gift is invested into the organizational endowment portfolio at Thrivent, where it:

• Generates earnings annually

• Contributes to longterm financial stability

• Continues to support ministry for generations

A minimum principal value of $25,000 must be maintained in the endowment fund.

When the fund’s value exceeds $25,000 then the income earned from that principal

value may be expended. None of the principal value may be expended until the funds

exceed $200,000. A maximum of 25% of the fund principal exceeding $200,000 may

then be expended annually.

• 6. Can the church spend the principal before the fund is worth $200,000?

The HLC Bylaws on the endowment fund states that the principal cannot be spent until

it exceeds $200,000, except under rare and extraordinary circumstances when the

future of the congregation is at stake. This would require a two-thirds majority

congregational vote. This protects the fund for future generations.

• 7. How are funds distributed?

No funds may be distributed without the recommendation of the team and majority vote

of the Vision Council. Upon approval the fund would be distributed on an annual basis

or at such times deemed prudent to accomplish its purpose. See HLC Bylaws Article 12

for more information.

• 8. What types of gifts can be given to the endowment?

Common gift types include:

• Cash

• Checks or electronic giving

• Stocks and securities

• Real estate

• Life insurance policies

• Retirement account (IRA/401k) beneficiary designations

• Bequest through a will

• Memorial or honor gifts

• 9. Can I designate my gift for a specific purpose?

The HLC Endowment Team in receiving donations, will honor the requests of donors

that satisfy the guidelines established by the Congregation, Vision Council and

Committee. The team may at its discretion refuse gifts that are inconsistent with the

mission and ministry of the congregation or fund.

Hawley Lutheran Church Endowment Fund FAQ

• 10. What are some examples of how the funds will be used?

The distribution of funds will help to accomplish the following purposes, but is not limited

to these examples:

• Mission and outreach in local and worldwide communities

• Grants for global missionary support and for laity and staff to attend or conduct

educational, music or evangelism conferences

• Grants to attend seminaries, colleges and church camps

• Grants to social service agencies to which this congregation relates

• Grants for programs designed to minister those in spiritual or economic need

• 11. Is my contribution taxdeductible?

In most cases, yes — gifts to a qualified church endowment are taxdeductible. However,

donors should always consult a tax professional for personal guidance.

• 12. How can I learn more or discuss a legacy gift?

You can reach out to any of the HLC Endowment Fund Committee members with any

additional questions:

Wade Bakke – Committee Chair (elected in 2023 and again in 2026 for a 2nd

term)

Stacie Hinrichs – Secretary (elected in 2025)

James Boeshans – Committee Member (elected in 2025)

Mischelle Hagerty – Committee Member (elected in 2024)

Mark Redepenning – Committee Member (elected in 2024)