Topic: General Foundation Information
What is the relationship between the North Carolina Baptist Foundation and the Baptist State Convention of North Carolina?
The North Carolina Baptist Foundation is one of two agencies of the Baptist State Convention. The Foundation is legally the “trust agency” of the Convention. North Carolina Baptist churches and individuals can provide support for ministry until our Lord returns by placing assets in our care. Though the Foundation operates independently from the Baptist State Convention, our Board of Directors is elected by them during their annual meeting in November of each year. Click here to leave the NC Baptist Foundation website and visit the website of the Baptist State Convention of NC.
What is an endowment and how does it work?
An endowment is a special fund set up for providing permanent income support for a named charity(ies). Donations into the endowment are invested and the earnings are distributed to the designated charities at least annually. Endowments may be established in the name of the donor or they can be named in honor or in memory of someone special. Because of the desire to serve all North Carolina Baptists, the Baptist Foundation will serve as permanent trustees for endowments both large and small. Endowments can be added at any time and in any amount. Many choose to add significantly to their endowments by Last Will and Testament and other assets at the time of death. The Foundation will serve as trustee for endowments that include a variety of charities as long as Baptist ministries receive at least 51% of the endowment income. Click here for an endowment illustration.
What is North Carolina Baptist Financial Services?
North Carolina Baptist Financial Services (NCBFS) is a ministry of the North Carolina Baptist Foundation. It was established in 2009 as a wholly owned subsidiary of the North Carolina Baptist Foundation. NCBFS is a North Carolina not-for-profit religious corporation established to make loans to Baptist churches and Baptist entities in North Carolina.
Are there any costs involved for a personal estate planning consultation or to have a speaker from the Baptist Foundation in our church?
No, we provide such services to all NC Baptists and Baptist churches. However, if you need legal documents drawn up or require other professional advice as a result of your estate planning, then costs for an attorney, CPA or financial planner could be involved.
Does the North Carolina Baptist Foundation have an ethics policy related to investments?
The Foundation has a Statement of Investment Policy, Objectives, and Guidelines. In general, the purpose of this statement is to outline a philosophy and attitude that will guide the investment management of the assets toward the desired results. This statement is reviewed at least annually by our Board. Also, funds placed with the North Carolina Baptist Foundation are screened to ensure that they are not invested in companies that benefit from holdings in gambling, pornography and alcohol industries.
Are there options with the North Carolina Baptist Foundation for clergy investments and retirement accounts?
We do not have an option for these types of investments at this time.
What are the North Carolina Baptist Foundation’s charges?
Administrative fees are assessed on all trusts for which the Foundation manages invested assets. Funds managed for or on behalf of individuals are charged an annual administration fee based on 1.15% of the market value of the fund assets. Churches and other Baptist institutions and agencies are charged an administration fee of 0.65% of the market value. All fees are taken monthly on a pro-rata basis. The fee for churches and other Baptist institutions and agencies is reduced incrementally for amounts over one million dollars. Click here to view the sliding fee schedule for churches.
What is an endowment spending policy and how does it work?
A spending policy creates a formula that determines how much income is “spent” or distributed to charities each year. This determination is made each year by the Foundation Investment Committee by examining a number of items including investment performance, market conditions, beneficiary needs, and anything else that could impact the endowments’ longevity and beneficiaries’ ability to continue its ministries. The policy’s objective is to keep charitable beneficiaries at a reasonable level of financial support for their ministries and programs. The Foundation implements an endowment spending policy where the average of the December 31st market values for the past five years is multiplied by the spending rate, currently at 4%. This spending policy is applicable to endowment funds invested in the growth fund created by individuals. If a church, association, agency, or institution creates an endowment, they may elect to participate in our spending policy or develop one of their own. The spending rate is reviewed annually.
Does the North Carolina Baptist Foundation have an annual audit? If so, who performs the annual audit?
The Foundation does have an annual audit performed. The latest audit was performed by C. DeWitt Foard & Company, PA, CPAs, located in Charlotte, NC. Click here to view our latest audit report.
How many funds does the Foundation have under management?
Approximately 2,300 funds are under management.
Is it possible to make withdrawals from revocable trusts? If so, how long does it take to process withdrawals?
Withdrawals are possible. Our accounting department requires a written thirty to forty-five-day notice to process these requests.
How often are written reports generated?
Reports may be generated monthly, quarterly, semi-annually or annually.
What tax reporting is provided by the Foundation?
All necessary tax reporting is done as required by the Internal Revenue Service.
What rate of return can be expected from the Foundation’s investments?
The rate of return will vary. Click here to view the Foundation’s investment returns.
How often are income distributions made from irrevocable trusts?
Checks may be generated monthly, quarterly, semi-annually, annually or as directed by the document.
Does the Foundation have funds available to assist me with my college education?
Yes, the Foundation currently administers four scholarship funds for this purpose.
How can I apply for the Foundation’s scholarships?
To apply for the scholarships, one must complete an online application by February 15 of each year. Click here for applications.
Is there a deadline to apply for the Foundation’s scholarships?
Applications and all attachments must be submitted by the deadline of February 15 each year. Applications will not be accepted after February 15. NO EXCEPTIONS.
Do I have to be a full-time student?
Yes, you do need to be enrolled full-time in a degree program.
Do I need to be a U.S. citizen?
Yes, you must be a U.S. citizen and a legal resident of the U.S.
Are there any fees to apply for a scholarship?
There are no fees to apply for the scholarship funds.
May I fax or email my application or attachments?
You may not fax or email your application or attachments. Applicants are required to submit their application and all attachments online.
If I do receive assistance in any one year, is it automatically renewed the next year?
Awards for scholarships are on a one-year basis. You must reapply each year.
When will I know if I was awarded funds?
Notifications regarding scholarship awards will be made on or before April 15 of each year.
Topic: Special Project Grants
Does the Foundation have any grant money available for churches, associations or Baptist organizations to use for special ministry projects?
The Foundation does have some limited funding provided by faithful NC Baptists for such purposes.
How can I apply for a grant for my church, association or organization?
Is there a deadline to apply for a grant?
Yes, the Foundation has a deadline of August 15 of each year. NO EXCEPTIONS.
May I fax or email an application for a grant?
No, an application must be completed online.
How much is the grant for?
The funds are very limited and we do not have a specific dollar amount we award to each applicant. Each application is thoroughly reviewed and grants are awarded on the basis of the guidelines, scope of the project, and need. However, prior grant awards range between $500 and $2,000, on average.
When will I know if our church, association, or organization was awarded a grant?
Notifications will be mailed to all applicants by September 30 of each year.
Does the special project grant have to be repaid?
No. The grant is a gift to encourage and enable the ministry project.
Topic: Wills, Estates, Living Trusts, Etc.
Who should be an Executor of an estate?
Does an executor need to reside in the same state as the Will testator?
While the Executor is not required to live in the same state as the person creating a Will, it is more practical when that is the case. The Executor will need to have access to the property and records of the deceased and will need to be qualified with the Clerk of Superior Court in the county where the deceased lived at the time of death. Depending on the situation, there are many Executor duties that are time-consuming and difficult to perform from a distant location.
What is a living trust and how do I know if I need one?
A living trust is a legal form of holding and managing the assets of an individual(s) while living and it provides the plan for distributing assets at death. It also should provide a plan for managing assets should the beneficiary(ies) become incapable of doing so. It is a revocable document that can be terminated or amended as needed. Unless stated otherwise, the living trust would distribute the assets outside of the probate process that administers the Last Will and Testament. This document is a companion document to the Will, not a replacement for one. While there are a number of good reasons to have a living will, there is a great deal of confusion caused by the many vendors hoping to procure business. A good estate planning attorney can advise individual clients on their personal need for one or not. The NC Bar Association produces a brochure on living trusts that is available for distribution at a reasonable cost. They may be called at 1-800-662-7407.
Can you draw up your own Last Will and Testament in North Carolina and will it be legal?
The law allows an individual to write his or her own Will but being legal and being proper are two different things. The drafting of the Will requires professional judgments that come from years of training and experience. An analogy would be to ask if an individual is legally allowed to perform his or her own surgery. The answer is the same.
How much does it cost to have an attorney draw up a will?
Like so many other questions, the answer is that it depends. For the average person, the Will would not be considered expensive, but it depends on the personal situation of the client. A simple Will by itself should cost a few hundred dollars, but if the personal situation requires more drafting time by the attorney, the client should expect to pay more.
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