As with many industries and businesses, there is a specialized language or essential terms used to describe the goals and aspirations, mechanics, and the nitty-gritty of how things work. This post is Part 1 of Essential Terms for Foundation Supporters. Some of these terms are defined elsewhere on the Foundation website, but this is a more robust list of terms and how they work with each other. Be sure to check out Part 2 – Mechanics of the Foundation and Part 3 – Putting Our Assets to Work, later in 2026.
Part 1 – How to Contribute to the Foundation
Click here to jump to the Gift Acceptance Packet which outlines the types of gifts and includes a draft Gift Agreement.
There are myriad ways to make gifts to the PHUMC Foundation and the easiest way is to give a gift of cash. In 2025, we had over 700 specific gifts made to the Foundation. They ranged between $5 and $2,500 with the average gift round $35. Many of the gifts received were in memory of a loved one or in honor of a friend or loved one. These donations include gifts restricted to a specific endowment as well as gifts to the General Endowment.
An endowment is a sum of money or property donated to a person, organization, or institution to be used for a specific purpose. In other words, it is a financial donation set aside to meet a stated goal of the donor. An endowment is an investment fund established by the Foundation to provide a permanent, ongoing source of income. The principal (the original gift) is invested, while only the earnings are spent, ensuring the funds last in perpetuity.
In finance, an endowment is considered a pool of donated assets designed to support an institution’s long-term financial stability. The initial gift is considered the principal or corpus of the endowment and is not allowed to be touched for use. The interest or investment earnings generated by the investments of the principal, are used to fund operations, grants, and scholarships.
There are subcategories of endowment accounts based on the designated use of their earnings. Within the PHUMC Foundation, we generally have restricted and unrestricted endowment accounts. We also help manage a few Donor-Advised Funds as well as some term endowments. When we speak of unrestricted and restricted endowments, we are speaking of how the earnings of those accounts may be used when we distribute funds. In the Foundation Bylaws and the Articles of Incorporation the stated purpose of the PHUMC Foundation is to support the missions and ministries of PHUMC. Unless specified in the Gift Agreement, all endowments are considered unrestricted – benefitting PHUMC.
Earnings from the unrestricted endowments are posted annually. These earning are grouped in to a single account from which the Foundation honors their annual commitment of support to the PHUMC Operations Budget. Since 2005, the Foundation Board has provided direct cash support to PHUMC through use of these funds. Other allowable uses of unrestricted funds are expenses related to the daily operations of the PHUMC Foundation Office and Discretionary Grants and Gifts when adequate funds are available.
Restricted endowment earnings are dedicated for an even more specific purpose within the Mission and Ministries of PHUMC. Examples of restricted endowments include the Fortenberry Music, Berry Children’s, and the Erwin-Faulkner Helping Hands Endowment. Each of the endowment spending accounts are managed individually and the monthly financial records show the earnings and expenditures. Generally, we ask that staff and clergy accessing these funds pre-request the distribution of funds rather than a reimbursement request after the fact.
There are multiple restricted endowments providing specific support to the following areas of PHUMC. General areas supported by restricted endowments are Children, Youth and Adult Ministry, Congregational and Staff Support, Buildings and Grounds, Broadcast/Television, Worship and Music, Communication, Welcoming and Hospitality, Mission, and Scholarships. The earnings from these accounts are made available annually to PHUMC staff for their use. Note, none of the earnings may be used to supplement salaries or enhance any benefit packages for PHUMC employees. Scholarship awards are paid directly to the students’ institution of higher learning.