Reflection :: June 6
Parishioner, Ace Yakey shares the following reflection:
Eli Lilly, former chairman of Eli Lilly and Company, died in 1977 leaving a considerable portion of his wealth to nonprofit organizations and churches in Indianapolis. St. Paul’s bequest alone was approximately $7 million. When St. Paul’s received Mr. Lilly’s generous bequest, parishioners were excited, but also concerned. An endowed parish must wrestle with serious questions about how funds earned from an endowment should best be used.
The general understanding of the parish then was that St. Paul’s would use the endowment’s income mainly for outreach. Revisions to the guidelines in the first 25 years stated that St. Paul’s own programs also should be considered. Still, there arose a question about how the congregation would react to the presence of the endowment. Would St. Paul’s members reduce their personal giving to the church because they felt it was no longer needed? The answer turned out, sometimes, to be yes. Some parishioners were heard to make a comment such as, “Well, the church doesn’t really need my help because we have all that Lilly money.” However, the stewardship guidelines approved by the Vestry in 1977 stated that “the Lilly income should not be permitted to replace or discourage responsible stewardship.” In 2000 updated guidelines stated that two-thirds of the annual draw from the endowment would be used for outreach and one-third would be used for operating support. However, the dollar amount of that one-third could not exceed the projected total amount of contributions made by parishioners.
Endowment funds are managed by a Board of Trustees (appointed by the Vestry). They report to the Vestry and recommend for Vestry approval annual draws of four to six percent of the endowment’s three-year average value. The Vestry determines how the draw is to be used in support of the annual budget. The overall objective of the endowment, as outlined in the investment policy statement of the Trustees, is to “support the mission and purpose of St. Paul’s.” To accomplish this, the investment objective states that “Trustees seek to make investment decisions which increase the financial value of the endowment’s assets over time” until “the coming of Christ in glory.”
In the first 25 years of the endowment’s existence St. Paul’s made more than $15 million in outreach grants – twice the amount of Mr. Lilly’s original gift. No totals have been calculated since then. Endowment draws since 2003 total more than $37 million. The endowment’s value today is approximately $37 million.
Mr. Lilly’s generosity and the transformative power of the endowment are reminders that philanthropic support of a church enriches the heart and soul of the giver. Is St. Paul’s endowment a blessing or curse? Does its existence affect our giving as we live into the mission of Sharing Christ’s Love, Creating Community and Striving for Justice? What do you think?
(Sources include the publication WITHIN / BEYOND / FOREVER, The First 25 Years of Service Through Faith and the Investment Policy Statement of the Trustees)
Ace Yakey, Parishioner
