The St. Michael’s Endowment Fund

A Legacy of Faith for Generations to Come

For generations, faithful people have given of themselves so that St. Michael’s could be a place where people worship God, grow in faith, find community, receive care, and serve their neighbors.  We are beneficiaries of their generosity.  The St. Michael’s Endowment Fund gives us an opportunity to offer that same gift to generations still to come.  

At St. Michael’s Episcopal Church, we are growing – in worship attendance, in spiritual depth, in our welcome to new families, and in our impact through formation and outreach.  As parishioners, we welcome this growth and as stewards we plan for it.

The St. Michael’s Endowment Fund provides a way for your generosity to continue supporting the life and mission of this parish—in perpetuity. Gifts to the Endowment are invested prudently. The principal is preserved and grows over time, while a sustainable portion of annual investment returns can help sustain worship, formation, pastoral care, and outreach for generations yet to come.  In this way, the Endowment ensures that the new spaces we are creating, the ministries we are expanding, and the welcome we extend today will continue to bear fruit long into the future.

Background of the St. Michael’s Endowment Fund

The Endowment was established by the St. Michael’s Vestry and approved by the Diocese of Texas in 2024 as a nonprofit corporation created to receive and manage endowment funds and other gifts for the sole benefit of St. Michael’s Church.  The Endowment is managed by a Board of Trustees that includes the Rector, Vestry Members, and non-Vestry Trustees.  The Board’s duties and responsibilities are determined by the Endowment’s Certificate of Formation and its Bylaws.  

How the Endowment Complements Our Other Giving

Your annual stewardship is the heartbeat of St. Michael’s. It funds our day-to-day worship, formation, staff, outreach partnerships, and the vibrant life of our parish right now.

The Grace to Grow capital campaign is a bold response to our growth – funding a new community/formation building, sanctuary expansion, parish hall updates, and expanded space for our day school so we can welcome more people into a nurturing, faith-filled environment.

The Endowment stands alongside these as a third, complementary pillar of faithful stewardship. It builds a permanent financial foundation for St. Michael’s so that the mission made possible by today’s generosity – annual pledges and capital gifts – can be sustained and strengthened for decades and generations ahead. It does not compete with current needs; it protects and extends their impact forever.

Ways to Support the St. Michael’s Endowment

The Endowment is funded through legacy, estate, and planned gifts, but we joyfully welcome current gifts as well. Every gift, no matter the size, helps secure St. Michael’s future.

Planned & Legacy Gift Examples

  • Include St. Michael’s in your will or living trust (a bequest).

  • Name St. Michael’s as a beneficiary of retirement accounts (IRA, 401(k), etc.), life insurance, or donor-advised funds.

  • Explore life-income gifts such as charitable gift annuities or charitable remainder trusts.

  • Donate in other  forms, including cash, real property, automobiles, art, or other assets, subject to the gift acceptance policies (please let us know if you have questions about specific items).

These gifts allow you to leave a lasting legacy at St. Michael’s as part of your overall plan to provide for your loved ones and often provide meaningful estate and tax advantages.

Memorial and Honorary Gifts

Honor the life and faith of a loved one with a gift to the Endowment. This could be in conjunction with a funeral or memorial.  Many families find deep meaning in creating a legacy that continues their loved one’s values at St. Michael’s for years to come.  An honorary gift could be made in celebration of a loved one’s milestone as well, such as a baptism, confirmation or wedding.

Qualified Charitable Distributions (QCDs)

If you are 70½ or older, you can make a gift to the Endowment directly from your IRA or other tax-qualified retirement plan account.  A QCD reduces the income tax effect of your required minimum distribution (RMD) from that account while making an immediate impact on our long-term ministry.

Other Charitable Gifts

You can contribute cash, appreciated securities (stocks or mutual funds), or other assets (subject to the gift acceptance policy) to the Endowment during your lifetime. These gifts can be added directly to the Endowment principal now, providing both immediate growth and potential tax benefits.

Sample Bequest Language (for your attorney)

“I give, devise, and bequeath to The Endowment Fund of St. Michael’s Episcopal Church of Austin, Texas (“St. Michael’s Endowment Fund”)(EIN 99-4087768), the sum of $______ (or ______% of the residue of my estate) to be added to the St. Michael’s Endowment Fund for its general purposes.”

We are happy to provide additional sample language tailored to other gift types or specific ministry areas. Always check with your attorney or tax advisor first to confirm the benefits specific to you. 

Next Steps

We would be honored to explore with you how a gift to the Endowment might align with your faith, values, and financial planning. All conversations are confidential.

Contact:

The Rev. John Newton, Rector

jnewton@st-michaels.org

512-327-1474

Or reach out through the church office. We can also connect you with resources for planning a legacy gift.

Please consult your attorney, financial advisor, or tax professional for advice specific to your situation. This information is for educational purposes and is not legal or tax advice.

Frequently Asked Questions

  • Annual stewardship supports our current operating budget and day-to-day ministries. Grace to Grow is a focused capital campaign to expand our facilities so we can welcome more people now and in the near future. The Endowment creates a permanent, growing resource whose returns support ministry in perpetuity, ensuring the impact of today’s generosity lasts for generations.

  • Both! While many gifts come through wills or beneficiary designations, we warmly welcome current gifts of cash, appreciated stock, QCDs from tax-qualified retirement accounts such as IRAs, and memorial gifts that grow the Endowment now.

  • Funds are invested prudently under the direction of The Board of Trustees according to sound investment policies. Our current plan is to allow the Endowment to grow, but a sustainable portion of returns may be distributed to support the ongoing mission of St. Michael’s—worship, formation, outreach, the day school, and more—in keeping with donor intent where specified.

  • Yes. Unrestricted gifts provide maximum flexibility, but you may also provide instructions for your gift to support specific areas of ministry.  While the endowment will continue to grow over the years, your wishes will be implemented in directing the investment returns over time. We are happy to discuss options that align with your passions and St. Michael’s needs.

  • Planned gifts can reduce estate taxes. QCDs from IRAs are tax-free and count toward RMDs. Gifts of appreciated stock during your lifetime can provide a double tax benefit – you avoid paying capital gains tax and also receive a full charitable deduction to offset income. Your advisor can help illustrate the benefits for your situation. Again, please check with your attorney or tax advisor first to confirm the benefits specific to you. 

  • No. Even modest bequests or memorial or honorary gifts make a meaningful difference when combined with others.

  • We are deeply grateful for every commitment to St. Michael’s future. If you choose to notify us, you will become a member of our Legacy Society.  We are in the process of determining the most appropriate way to recognize our Legacy Society. In any case, recognition is always handled according to your wishes.

  • Your commitment to make a future gift to the Endowment can be updated at any time. Life changes, and we understand. Any actual funded donations cannot be returned.

  • The Board of Trustees provides management and oversight of Endowment funds and is responsible for ensuring that distributions align with the Endowment’s purposes, any donor restrictions, and the long-term sustainability of the Endowment itself.