This is the first in a two-part series on the different approaches Episcopal Church Foundation (ECF) Endowment Management clients have taken to responsible investing.
When the Rev. April Berends arrived as rector of Grace Episcopal Church in Chattanooga, Tennessee, in late 2017, one of her first questions at an endowment committee meeting was whether ECF/State Street offered a socially responsible investment option. At the time, the answer was “not yet.” Responsible investing options were still in development.
Every endowment and finance committee reaches a point where the question of succession comes up. A longtime treasurer steps down. A trusted committee chair rotates off. A key voice retires from the congregation. These transitions are a natural part of committee life, but they do not have to catch your church off guard.
Churches celebrate milestones in many ways—new ministries, baptisms, confirmations, and anniversaries. But what about the legacy of generosity that sustains the church through generations? That's where Legacy Sunday comes in.
The first months of the year invite reflection and reorientation—they’re a natural time for endowment committees to align purpose, process, and priorities. A thoughtful review during the first quarter can steady your church’s finances for the year ahead and provide clarity when uncertainty arises. At ECF, we believe that asking the right questions early in the year helps committees move beyond reacting to market performance toward building intentional, mission-driven strategies. When committees pause to plan, they strengthen not only the endowment but the church’s ability to carry out its ministry with confidence and purpose.
Endowment gifts may come to your church in different ways. A longtime member may include your church in their will, or family may reach out after a loved one passes and wants to donate stock. Someone might pull you aside after a service and ask, “If I wanted to leave a legacy gift to the church, how would that work?”
December in the Episcopal Church is full of beauty and motion. The Advent wreath is lit. The choir is layering harmonies over “O come, O come, Emmanuel.” The sacristy smells like candle wax and evergreen. There’s pageant rehearsal in the parish hall and a plate of cookies left behind from the coffee hour. And Vestries and endowment committees are squeezing in one last meeting before the year ends.
Every investment committee faces this question sooner or later: how much risk is too much? While investing plays a vital role in helping your church’s endowment grow and sustain its mission for years to come, achieving that goal means finding the right balance between risk and reward. Some investments provide steady, predictable returns with lower returns, while others come with more ups and downs — but also the potential for greater growth.
We’re entering the holiday season and during this time your church may receive more visitors, whether they’re coming for the first time or returning after some time away. Often these visits are prompted by a desire to reconnect with their faith or with familiar holiday traditions. The holiday season is a time of renewed connection, and it’s a chance to help people connect more deeply to your endowment and to one another.
The vestry gathers for their monthly meeting. On the agenda: a proposal establishing an endowment fund to help secure the church’s long-term future. Some vestry members express enthusiasm, recognizing the potential for financial stability. Others, however, are hesitant. “If we start an endowment, won’t people think they don’t need to contribute to the stewardship campaign anymore?” one member asks. Another adds, “I’ve seen churches that became so reliant on their endowment that they stopped prioritizing stewardship altogether.”
During a record-breaking heatwave, a church in Washington, DC opened its parish hall as a cooling center. One elderly woman from the neighborhood, who lived alone without air conditioning, saw the sign and stepped inside. She stayed for several hours to avoid being in her hot apartment and to rehydrate and rest. Before she left, she told a volunteer she hadn’t known anything about the church before. But now, she said, she felt like it was a place she could turn to for help.
A Church Too Small for an Endowment? Think Again!
Do leaders at your small church think an endowment is out of reach? Not so! At ECF, we know from our work with hundreds of Episcopal organizations that church size and endowment size are not necessarily related. Plenty of churches with small congregations can have a well-managed endowment to provide extra annual revenue and improve future financial stability. Yet some small churches see real and imagined impediments that limit their ambition to establish and sustain an endowment. Let’s look directly at some of these (mis)perceptions to inspire you to see beyond them.
How often does your endowment committee step back and take a good look at your endowment? At this time of the year, a mid-year check-in to review policies and plans as well as investment performance is an easy way to stay anchored in what your endowment is intended to accomplish. With this review, the committee can also help ensure that everyone involved with the endowment is aligned heading into the second half of the year. This six-question mid-year check-in will help your committee reflect on what’s working, identify any gaps, and prepare for the rest of the year.
At your last vestry or finance committee meeting, did someone ask, “What happens if giving drops this year? or “Do we have the funds if a major repair comes up next year?” Those questions are becoming more common, especially in times of economic uncertainty. Even endowed churches face pressure to spend more from these long-term funds. When markets fluctuate, giving patterns shift, and costs climb faster than budgets can keep up—a strategic financial plan can serve as both an anchor and a compass.
Reflections from a Sabbatical Road Trip
Earlier this month, I took a short sabbatical road trip with my six-year-old son— a journey that took us from our home in Michigan through Ontario and into Quebec, with stops in Toronto, Ottawa, and Montreal. Along the way, we immersed ourselves in one of our favorite pastimes: hockey. We caught NHL games in all three cities, visited the Hockey Hall of Fame, and sang along to Stompin’ Tom Connor’s The Hockey Song more times than I can count.
When faith communities establish an endowment, they often begin with a simple purpose: to support outreach ministries, to enhance worship and music, or to provide long-term financial stability. This clarity of purpose is essential—it ensures that the funds are directed toward the intended ministry and that donors can trust their gifts will be stewarded accordingly.
Thinking about creating a new endowment fund? Before making a decision, it’s important to consider key factors like governance, investment strategy, and long-term impact. The guide below outlines five essential steps to help your church navigate the process.
As an endowment committee member, you carry the significant responsibility of managing your church’s endowment—an essential resource that funds its mission and supports its future. This responsibility requires thoughtful oversight, strategic planning, and a clear understanding of your fiduciary duties. To help you stay on track, here’s a seasonal framework to guide your committee’s work throughout the year.
Our congregations are diverse - spanning multiple generations, different financial circumstances, varying interests, and different ways of connecting with the church's mission. The most effective approach to encouraging church giving, whether it is annual giving or endowment giving, isn't implementing a one-size-fits-all approach — it's about meeting each donor where they are in their giving journey and making it easy for them to support the church and the ministries that matter to them.
As the calendar year draws to a close, church leaders have a special opportunity to encourage year-end charitable giving. Not only is this a time when parishioners are reflecting on their faith and generosity, but it's also a moment when they may be considering how their gifts can leave a lasting legacy. For churches managing endowments, the end of the calendar year presents an especially powerful time to invite contributions that will support the mission of the parish for generations to come.
In our new series, “In Conversation,” Aline Sun, Program Director in the Episcopal Church Foundation's Endowment Management Program, interviews Simona Mocuta, Chief Economist at State Street Global Advisors. They discuss the crucial role economists play in investment management, providing valuable perspectives on how economic trends impact investment strategies. This conversation offers key insights for those involved in endowment management and anyone interested in understanding the intersection of economics and investment strategy. Watch the full interview below.