Local Church Foundation
Local Church Foundation (LCF)
A Local Church Foundation Account established with the EPC Foundation allows a church to set up a fund to which either the church or its members may make direct contributions. This allows the church to accept all types of accumulated wealth assets from their members that they may not be willing or able to accept now - such as real estate, business assets and equipment, closely-held businesses, public & restricted stock and mutual funds, retirement accounts and personal property.
Each local church makes requests for distributions from their Account. The local church may also set up project designations that may be general or very specific depending on the parameters of each church. Once it is established, the EPC Foundation will facilitate all the administration, record keeping, distribution, and investment management.
What is a Local Church Foundation (LCF)?
The Local Church Foundation is a foundation-like account that serves as a fund that primarily allows your church to accept non-cash gifts of stocks, bonds, mutual funds, real estate, business assets and equipment, closely-held businesses, public & restricted securities, retirement accounts and personal property. It also strengthens the relationship with your members and donors by opening up new opportunities of giving. This is accomplished without adding new staff or administrative overhead to your church budget.
How does the Local Church Foundation work?
Once your church fills out an application form and appoints a person/s to serve as the accounts advisor, then the LCF is established. Depending on the amount of your LCF balance and your investment strategy, your contributions have the potential to grow through professionally managed, diversified investment portfolios. Your church may recommend distributions from the LCFA on a monthly basis.
What are the benefits of a Local Church Foundation?
The EPC Foundation provides your members and donors with trustworthy services including the ability to make a wide range of contributions - from cash to complex gifts; and the opportunity to work with the leadership of the EPC Foundation. This ensures that you are working with people that have the same mission as your own.
Another benefit of a Local Church Foundation is that members and donors can bequest a percentage of their estate to their church and designate that it be placed in the Local Church Foundation for a specific purpose. Therefore, it provides members more opportunities to support the future mission of the Church.
The Local Church Foundation has several clear advantages over an independent private Foundation.
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Ease of set up
Your church can set up a Local Church Foundation in a few days. With an independent foundation, each church must incorporate, and then apply for IRS approval to attain tax-exempt status which may take six to nine months.
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Lighter administrative burden
After your church opens a Foundation Account, we coordinate all administration, distribution, investment management and record keeping. When you operate an independent foundation, you are responsible for managing assets, processing the gifts, balancing the books and keeping records.
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Greater anonymity for your members
Your members have the option to give to your LCF without other members in the church knowing the details and final distributions of their gift.
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Lower operating costs
A LCF requires no set-up fees, and fees for gift transactions and investment management are reasonable and competitive.
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Greater privacy and professionalism
Your Local Church Foundation is secure and confidential. Also, there is peace of mind knowing that you are working with people at the Evangelical Presbyterian Foundation that are experienced in the area of planned giving and estate design. We assemble a team of experts that can design, coordinate, and facilitate simple and complex gifts in a timely and professional manner. Most importantly, we help individuals, families and churches carryout their stewardship responsibilities with the same goals in mind - advancing the Kingdom of God through the ministry of the Evangelical Presbyterian Church.
