November and December are the time in the U.S. when some retirees over age 70 ½ decide to direct the “required minimum distribution” from their Individual Retirement Account to go directly to a charity. This avoids having to pay taxes on the income.  It also will extend the mission of their favorite not for profits.  We appreciate those of you who keep UUSS high on your list.

Recently a UUSS member indicated an intention to make a large lump-sum gift to UUSS, and inquired about the alternatives for donating to make a lasting and long-term impact.  The two primary ways to do this are the Heritage Fund and the Endowment.

The Endowment:  Endowment Trustees (elected by the congregation) consider and decide on requests for one-time grants for improvements to the building and grounds, the purchase of equipment, and other one-time needs.  In recent years the Endowment has funded an electronic keyboard, the Labyrinth project, and equipment requested by our Safety Task Force.

Current assets of the Endowment:  about $142,000 in stock mutual funds and about $280,000 in a loan to UUSS for part of the Main Hall renovation and expansion.  The Endowment is restricted by a trust document made in the 1980s. This prohibits the corpus (or principal) from ever being spent down.  Total annual Endowment grants are limited to 5 percent of the principal balance.  This means a large lump sum could never be used to support making a major expense of any kind, including capital improvements.

The Heritage Fund:  The Heritage Fund supports improvements to the building and grounds and one-time expenses that enhance our Mission and enact our Strategic Plan’s goals.  The Heritage Fund has the flexibility to support large projects, including expansions, renovations or additions to the campus. Authority to spend from the Heritage Fund rests with our elected UUSS Board.  It can give a starting boost to a future capital fundraising campaign, but may not be used to fund annual operating budget expenses. The current asset balance is $83,000, smaller than the Endowment.

Unless otherwise designated by the donor, all one-time gifts to UUSS, including memorial contributions and beneficiary designations would go to the Heritage Fund. I recommend the Heritage Fund, as it provides the maximum flexibility for supporting major initiatives at UUSS.  I’m including it as a beneficiary designation in my retirement fund.

If you aren’t sure of your own choice to make a lasting impact for the future vitality of UUSS, please talk to a minister, Treasurer Victoria Owens, or Endowment Chair Fred Deneke.

With thanks,

Roger