Colonial Church Foundation

Supporting the Mission of Colonial Church

The Foundation is committed to supporting the work and ministry of Colonial Church. The church’s mission is the framework for evaluating and making grants. Colonial is Pursuing Jesus’ Dream for the World and the church is focused on three priorities:

Covenant Community - committing to one another and walking together in community;

Spiritual Formation - being shaped, individually and as a body, to be more like Jesus Christ;

Loving and Serving - serving others and journeying outward, to bring the love of God and the compassion of our faith to a world that desperately needs them.

Colonial Church Foundation grants have underwritten guest lectureships and adult education seminars. They have provided short-term operating support for Christian ministries in the community and start-up monies for all-church retreats promoting fellowship within our own church family. Funds have been given to help pay for new playground equipment and upgrades in telephone, computer and audio-visual systems. The Foundation has supported major building maintenance projects.

Principles of the Colonial Church Foundation

Gifts to the Foundation give forever.
All gifts to the Colonial Church Foundation become part of a permanent endowment fund, unless otherwise designated. And since only investment earnings are spent, not the principal sums, gifts become a means of supporting the work and ministry of Colonial Church in perpetuity—forever.

Donors can leave a legacy through designated gifts.
Gifts to the Colonial Church Foundation may be designated for ministry areas that hold special interest for donors. This type of focused giving expresses what donors care about most. It tells future generations about their passion and soul. It enables them to leave a legacy.

Designated gifts may be made within four basic funds of the Foundation’s endowment:

  • Colonial Village Fund - for maintenance of the church’s building and grounds;
  • Program Fund - for specific program areas and ministries of Colonial Church;
  • Mission & Outreach Fund - for ministries and special projects as recommended by the Outreach Ministry Committee and approved by the Foundation’s Board of Directors;
  • General Fund - for purposes determined by the Foundation’s Board of Directors and normally not funded by the church’s operating budget.

Preservation of principal and investment performance are key priorities.
The endowment fund is invested and managed professionally. Financial managers work with the Foundation’s Board of Directors to maximize investment performance. The Board performs a complete review of fund performance annually.

Giving to the Colonial Church Foundation

Donors to the Foundation are vital to Colonial Church. Their gifts help support ministries within the church and in our community. They underwrite programs or projects not funded in the church’s operating budget. They support maintenance and improvement of the Colonial Village. They perpetuate the memory and commitment of loved ones or special people who made a difference in donors’ lives. They provide a solid financial foundation for future generations.

The Foundation is able to receive a wide range of charitable contributions including:

Cash and Securities. Cash contributions provide donors with immediate tax benefits. Gifts of appreciated securities provide special tax benefits, including a reduction or elimination of capital gains tax.

Bequests and Wills. The use of bequests in wills is one of the most significant ways to give to the Colonial Church Foundation. Bequests can take many forms, ranging from leaving a specific asset or sum of money to designating a percentage of an estate or what remains of an estate after providing for other beneficiaries.

Retirement Plan Assets. Retirement account assets left to family members (other than a spouse) may be subject to higher taxation than other assets. Using these retirement assets for charitable contributions allows for a reduction in estate taxes.

Life Insurance. By designating the Colonial Church Foundation as beneficiary of a new or existing life insurance contract, a donor can make a significantly larger gift than may be possible out of current assets. If a life insurance policy is no longer needed and it is donated to the Foundation, the donor receives immediate tax benefits. Future premium payments also are deductible once ownership has been transferred to the Foundation.

Income Producing Plans. A number of plans allow donors to make gifts to the Foundation and receive income for themselves and their beneficiaries. The most common plans are charitable gift annuities and charitable remainder trusts.

Charitable Lead Trusts. A charitable lead trust offers significant charitable and tax benefits. During the term of the trust, a percentage of the assets is paid each year to the Colonial Church Foundation, and at the end, all remaining assets return to the donor or pass on to their heirs. Gift or estate tax paid on this gift can be reduced because the present value of the payments to the Foundation is subtracted from the gift amount.

All gifts to the Colonial Church Foundation are charitable contributions and tax-deductible in accordance with federal and Minnesota tax laws. Donors are urged to consult an attorney or financial advisor before completing arrangements for gifts to the Foundation. For more information, please contact Jim Garvey - Church Administrator.

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