The Pine Street Fund

A means of practicing stewardship beyond our lifetimes

The PINE STREET FUND has been established as a means by which we may make gifts to the church of a portion of our accumulated resources.

Much of what we enjoy at Pine Street was made possible by dedicated members of past generations whose gifts have provided the endowment fund that we currently possess. This endowment fund, although the result of loving and faithful generosity, is not adequate for the future needs of Pine Street Church.

The PINE STREET FUND is designed to enable us to pass on to future generations the blessings of God's love in our lives. It is now our great privilege to use our resources so that Pine Street will be enabled to continue the Lord's work beyond our lifetimes.


INTRODUCTION
In the 1850's a group of conservative Presbyterian men and women left. a downtown Harrisburg congregation in a dispute over theology. These dedicated worshippers joined together for Bible study and traditional worship, forming in 1858 the church we know as Pine Street Presbyterian Church. The programs of Christian worship, education, fellowship and mission outreach have continued through the generations since then.

Both the physical plant in and through which we serve and the programs of service to nurture our members and our expanding mission fields are now our responsibilities. By our regular giving we must, accept and meet this obligation during our lifetimes, and we can continue to support Pine Street beyond our lifetimes through the PINE STREET FUND.

The PINE STREET FUND was established in 1993 by an act of Session in response to a growing awareness that a larger endowment fund was required to ensure the long term goals and plans of the church. The purpose of the fund is neither to replace or supplement regular annual giving of Pine Street members nor to supplant our current endowment funds. Rather, it is an additional avenue for stewardship, providing Pine Streeters with even greater opportunities for service than we enjoy today.

Several endowment funds, special project funds, a capital expenditures fund and a general purpose fund are envisioned as specific parts of the PINE STREET FUND, each with its own purpose and management.

THE ENDOWMENT FUND
Gifts to the Endowment Fund serve to build a permanent capital base for the continuing ministry of Pine Street Presbyterian Church. The principal of the fund shall be inviolate in perpetuity. Expenditures from the Endowment Fund are restricted to the net income of the fund and are intended to support general operating needs of the church.

Four specific endowment funds have been planned, each with a special role to play in strengthening and expanding ministry at Pine Street. In future years, our dreams for mightier uses of endowment may be expanded by new visions!

1. The Building Endowment Fund
Session has approved a goal of two million dollars for this fund, to be reached within ten years. Approximately this principal amount will be required to provide for the maintenance and insurance of our buildings. Imagine the opportunities for greater program and mission activity if our buildings went fully endowed!

2. The Mission Endowment Fund
This endowment fund will provide an ongoing source of revenue for a vital and expanding mission program at Pine Street Church. Think of
 the blessings to be realized from an endowment ensure the continuation of missions such as Downtown Daily Bread and other projects yet to 
 be envisioned at home, in other states and around the world.

3. The Christian Education Endowment Fund
The purpose of this endowment is to provide continuous funding for expanded Christian Education opportunities. Church educators may see dreams for new youth activities and adult, nurturing programs become realities.

4. The Worship and Music Endowment Fund
This fund will be used for such needs as maintenance of the organ and sanctuary, new choir robes, or other projects and improvements to
 enhance our worship.

EXPENDABLE FUNDS
Endowment funds are long term capital funds of which the principal remains invested and only earnings can be used for program or building needs. The funds described below are designed to be accumulated for specific goals, then both principal and income used to meet the designated purpose.

1. The Special Projects Fund
This fund is for special projects of the church, either property or program. One example is air conditioning of the sanctuary. The goal of the fund is to accumulate resources to moot the financial requirements of a special project. When the fund goal is reached, the project is undertaken and paid for by total principal and earnings. Any number of such funds may be established and maturing at the same time.

2. The Capital Expenditures Fund
This fund has been established to finance improvements to church properties and to provide for emergency or extraordinary repairs to church buildings and equipment. The expenditure of principal as well as income is permitted.

3. The General Purpose Fund
Undesignated as to specific purpose by its nature, the use of this fund is limited only by our imagination, our dreams, and our sense of commitment.

WHY GIVE TO THE PINE STREET FUND?
Gifts to the PINE STREET FUND will bring blessings in many forms, from emotional and spiritual joy to financial advantage. Supporting the PINE STREET FUND means supporting Pine Street Presbyterian Church, bringing a sense of satisfaction and fulfillment. There is joy in giving to an institution that has given to so many.

To give to the PINE STREET FUND is to affirm a belief in what Pine Street Church does, and to support Pine Street in the doing of it. Giving is important because it is a tangible symbol of offering to God all that we are and have. By supporting Pine Street Church through the PINE STREET FUND, you also affirm your belief in the future of our church and its place in God's ministry on earth. Financial benefits for the giver to the PINE STREET FUND may include:

$ Substantial income tax deductions
$ Substantial estate and/or gift tax savings, which can increase amounts passing to loved ones
$ A substantial increase in net income
$ Sale and diversification of assets given to the Fund without capital gains tax and from which you or a loved one can still derive a stream of income

$ Relief from the stress and anxiety which can accompany management of personal assets

Please contact any member of the Planned Giving Committee for more detailed information on the advantages, spiritual and financial, that can be realized by supporting the PINE STREET FUND or by engaging in other types of financial stewardship.

HOW CAN WE GIVE TO THE PINE STREET FUND?
You can give to the PINE STREET FUND by a variety of methods. Generally, decisions regarding substantial gifts should be made after consultation with professional advisors. Members of the Pine Street Planned Giving Committee are available to help you.

OUTRIGHT GIFTS
The simplest and most common form of gift to the PINE STREET FUND is an outright gift of money, stocks, bonds, life insurance policies or other property. This type of gift provides most quickly for growth of the Fund, and consequently the most immediate opportunity to fulfill the Fund's objectives. These gifts take a number of forms.

Lifetime Gifts
A lifetime gift to the PINE STREET FUND may be a substantial one-time gift representing a special sacrifice by the giver. Alternately, a giver can choose to make a series of gifts to the Fund. A series of annual gifts often results in a larger total contribution to the Fund, but either method will provide for the giver the special feeling of satisfaction which comes from being of immediate assistance to the church.

Lifetime gifts of appreciated property, such as stocks or investment real estate, are especially attractive because the giver can deduct, for income tax purposes, the fair market value of the property at the time of the gift. No capital gains tax will be paid on the appreciation in value of the Property.

Life insurance purchased for a purpose no longer needed, such as to ensure a college education for children who have completed their schooling, would be a welcome gift to the PINE STREET FUND.

Gifts through Wills
Making a will is the only way to be sure that your property will be distributed to the people and institutions, including the PINE STREET FUND, that you choose. A will also provides important protection for your family in preserving and managing your property after your death. A regular, perhaps annual, review of your will is wise. Your attorney can help you make any desired changes, which may be as simple as making a codicil to your will.

Gifts through wills may be outright bequests, such as the lifetime gifts discussed above, or may be in the form of charitable lead trusts or charitable remainder trusts.

Charitable Lead Trusts
A charitable lead trust is a tax advantageous way of giving a stream of income to the PINE STREET FUND while retaining ultimate ownership of the underlying assets for oneself or one's loved ones. A charitable lead trust can result in an income tax, estate or gift tax deduction; and it can increase total amounts ultimately payable to one's heirs, while at the same time providing important support for Pine Street Church.

DEFERRED GIFTS
All deferred gifts have two basic characteristics. First, the donor retains a present interest in the property gifted, such as the right to all the income generated by the property for a specified period or for life. Second, a future interest, in the property is designated for the PINE STREET FUND.

There are many types of deferred gifts. Some will immediately give rise to gift or income tax deductions, whereas others may allow estate and inheritance tax deductions. Some types of deferred gifts are revocable and others are irrevocable.

The simplest type of deferred gifts would include the designation of the PINE STREET FUND as the beneficiary of a life insurance policy, an Individual Retirement Account or other qualified benefit plan. The PINE STREET FUND can be designated the beneficiary of a "pay on death" bank account.

Deferred giving plans can be arranged through any financial institution with trust powers. The Presbyterian Church (U.S.A.) Foundation offers a number of professionally managed mechanisms for making deferred gifts. Many types of annuities and trusts may be established through this organization. A description of the plans offered by the Foundation are described in a booklet found inside the back cover of this brochure. Consult with your attorney and/or other professional advisor before making a deferred gift to the PINE STREET FUND.

Specific Types of Deferred Gifts

Pooled Income Fund
A pooled income fund, made up of contributions from many persons, is a fund established and operated by a charitable organization, such as the Presbyterian Foundation. The organization manages the funds and annually distributes earnings on a pro rate basis to its contributors. When a contributor dies, that person's portion of the fund is given to the designated charitable institution, such as the PINE STREET FUND. An income- tax deduction is allowed for the year the gift to the pooled income fund is made.

Charitable Gift Annuity
A charitable gift annuity involves a gift of cash or securities. The donor designates an annuitant, either self or another, and the annuitant receives income payments for life. The income amount depends on the amount of the gift, and the age of the annuitant. On the death of the annuitant, the remaining portion of the contribution is paid to a designated charitable beneficiary, such as the PINE STREET FUND. The donor may receive an income tax deduction the year the annuity is purchased, and may receive some tax-free income from the annuity.

Charitable Remainder Unitrust
A charitable remainder unitrust is an irrevocable trust which provides a lifetime benefit, called a "unitrust payout", to one or more persons, with the assets remaining in the trust payable to one or more charitable organizations on the death of all of the other beneficiaries. The unitrust payout must equal at least five percent of the fair market, value of the assets placed in the trust, and the assets must be revalued annually.

The donor of the trust is entitled to a deduction for the value of the interest, passing to the charitable organization. This will be an income and gift tax deduction if made during the donor's lifetime, and will be an estate and inheritance tax deduction if made through the donor's will.

Charitable Remainder Annuity Trust
This irrevocable trust, is similar to the charitable remainder unitrust. The primary difference is that the annual payout to the donor or the donor's designee is a guaranteed annuity of at least five percent of the, fair market value of the assets placed in the trust, The annuity amount will not vary, even if the earned income or asset, value should change.

The same types of tax deductions are available for charitable remainder annuity trusts as for charitable remainder unitrusts, although the deductions are calculated differently.

Revocable Charitable Remainder Trust
A revocable charitable remainder trust is a trust established by a living donor, who receives all income earned by the trust during his or her lifetime. The donor may also reserve the right to withdraw assets from the trust. On the death of the donor (or the donor's survivor and other specified persons such as the donor's spouse) the assets remaining in the trust can be paid to the PINE STREET FUND.

A revocable charitable remainder trust, is a special type of the so-called "living trust," of which much has been written. No income tax deductions can be taken, but the assets remaining in the trust, at the death of the donor may escape federal estate tax and Pennsylvania inheritance tax.

Deferred Payment Gift Annuity
This annuity is similar to the charitable gift annuity. With a deferred payment gift annuity, the annuitant receives no payments for at least one year after the gift is made. Because of this, the income tax charitable deduction will be larger than in the case of a charitable gift annuity.

SUMMARY
This brochure contains a brief discussion of various types of giving which can benefit you, your loved ones, the PINE STREET FUND and The Pine Street, Presbyterian Church.

Many of the ways of making gifts discussed above, particularly the various types of deferred gifts, are subject to strict tax regulations in order to obtain charitable income tax, gift tax, or estate tax deductions.

The manner in which you intend to support the PINE STREET FUND will depend on many factors, including your financial needs and the needs of your dependents. A careful, prayerful study will lead you to a decision that will benefit you, your loved ones, and Pine Street, Presbyterian Church.