Legacies 1Q26

Legacies A publication of the United Methodist Foundation of Louisiana

Inside This Issue

Simple Ways to Grow an Endowment Page 2

Inheriting an IRA From a Parent Page 3

Foundation News Page 4

1st Quarter 2026

ENDOWMENTS:

Listening, Leading and Leaving a Legacy

W

hen Rev. Dr. J. C. Richardson arrived at Wesley United Methodist Church in Baton Rouge nearly three years ago, he began with a simple but essential step: listening.

Called to preach at age 12 and entering full-time ministry at 27, Richardson— who has served congregations in Alabama, North Carolina and Louisiana for 24 years—understands that effective leadership begins with learning a church’s culture, history and hopes.

Wesley’s leadership team shared a deep desire to care for the next generation.

From those conversations came a bold vision: establish a $2 million endowment to secure the church’s future. After prayerful discernment, thoughtful discussion and the appropriate votes and charge conference approvals required

by The United Methodist Church, Wesley established its endowment fund at the United Methodist Foundation of Louisiana. Now, the only thing left was to fund it.

Wesley United Methodist Church of Baton Rouge With a vision to care for the next generation, Wesley has established an endowment with the Foundation to sustain ministry for generations to come.

conversations, Richardson learned that the Foundation offers a $5,000 endowment match.

“We developed the Endowment Match Program to inspire church leadership to establish lasting funds that will sustain ministry for generations to come. We are grateful to set aside grant dollars for this purpose and to partner with churches in building a legacy that endures,” Chris Spencer, Foundation President and CEO, said.

Soon after, a longtime member made the endowment’s first gift of $15,000, providing the fund with its initial investment.

Receiving the Foundation’s endowment match felt like further affirmation to Richardson, who said, “That was a big deal because it put us at 1% of our goal.”

“This gift brought such joy to the congregation and confirmed for me that this was God’s doing,” Richardson said.

The church celebrated the endowment’s launch with a special worship service in January, announcing to the congregation that the fund had officially been established.

The Foundation played a vital role in helping Wesley move from vision to reality. Foundation staff walked church leaders step-by-step through denominational requirements, ensuring that resolutions, policies and documentation were completed carefully and correctly. Through these

The Foundation created materials, including brochures, to help Wesley members understand the purpose and power of an endowment. The materials explain how gifts are invested, how continued, page 2

Legacies

continued from page 1

2026 Board of Trustees Rev. Jo Cooper Chairman Rev. Katie Black Abby Cochran Rev. Clifton Conrad

the principal remains intact and how earnings provide ongoing support for ministry. The brochure emphasized that every member can contribute at any time and in any amount.

In addition, the Foundation established online giving for Wesley’s endowment on its website, making participation simple and accessible.

Wesley’s congregation has demonstrated a culture of generosity throughout its 160-year history, and generosity remains one of the church’s

core values. “Generosity is in our DNA,” Richardson said.

“It is my hope that the endowment will bless the church. I hope it will increase in time and provide the financial resources needed to not only have the capacity, but to maintain the capacity for making disciples,” he said.

“Endowment is ministry,” Richardson reflected. “It’s planting seeds now so future generations can enjoy the fruit. We shouldn’t be the only ones who taste the harvest.”

Brent Graham Drew Kennedy Bob Kimbro Eunice Val Lavigne Richard Lewis Rev. Mimi McDowell Sen. Willie Mount Troy Searles Dr. Van Stinson Rev. Drew Sutton

Chris Spencer President

Pastor Richardson (front) and members of the Wesley United Methodist Church congregation gather at the altar in prayer during the January 11 Sunday service, celebrating the creation of the church’s new endowment and the faithful generosity of its members.

It was a sacred moment of gratitude, unity and hope for the future.

Simple Ways to Grow an Endowment

E Contact Us: 8337 Jefferson Hwy. Baton Rouge, LA 70809 Phone: (225) 346-1535 Email: information@umf.org Web Addresses: www.umf.org www.umfgiving.org Legacies Editor: Kelly Johannessen kellyj@umf.org

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ndowment funds create a permanent financial foundation.

Whether established by your church or you as an individual or family, an endowment’s earnings strengthen ministry for generations.

Growing an existing endowment does not have to be complicated. Below are three easy ways donors can help grow an endowment: Memorial gifts provide a meaningful way to honor or remember loved ones on birthdays, anniversaries and holidays with contributions that will bless the ministry far into the future.

Required Minimum Distributions (RMDs) allow donors age 73 and older

to direct required IRA withdrawals to the endowment, often allowing them valuable tax benefits.

Qualified Charitable Distributions (QCDs) enable those 70½ or older to transfer up to $108,000 annually from an IRA directly to the church, reducing taxable income.

Churches can encourage members to include the endowment in their estate plans.

The stronger the endowment grows, the more ministry you or your church can accomplish.

If you would like guidance in starting or growing an endowment, the Foundation staff is ready to help.

1st Quarter 2026

Savvy Living Inheriting an IRA From a Parent Dear Savvy Living, What are the rules regarding inherited IRAs? My sibling and I recently inherited our parent’s IRA, and we would like to know how to handle it properly.

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nheriting an IRA from a parent comes with a unique set of rules. Understanding the rules can help you make the most of the money you inherit and avoid an unpleasant surprise at tax time. Here are some key guidelines every beneficiary should understand.

The 10-Year Withdrawal Rule

Exceptions to the Rule

Under the SECURE Act, signed into law in December 2019, most nonspouse beneficiaries must withdraw all the money from an inherited IRA by the end of the 10th year following the original IRA owner’s death. This rule applies if the owner died in 2020 or later.

Some beneficiaries are exempt from the 10-year rule, including a surviving spouse, a minor, a disabled or chronically ill beneficiary or someone who is within 10 years of age of the original IRA owner. These beneficiaries may be allowed to stretch withdrawals over a longer period.

Setting It Up

If your parent had already begun taking required minimum distributions (RMDs), you must continue taking annual RMDs while also withdrawing the entire account within 10 years. If your parent had not yet started taking RMDs, annual withdrawals are not required as long as the entire IRA is withdrawn by the end of the 10-year period.

Minimize Your Taxes

Many people assume they can roll an inherited IRA into their own IRA, but that is not allowed for most beneficiaries. If you inherit an IRA from a parent, sibling or anyone other than a spouse, you cannot treat the account as your own; it must be transferred into a newly established inherited IRA, properly titled in the deceased owner’s name.

If your parent named multiple beneficiaries, the IRA may be split into separate inherited accounts.

This allows each beneficiary to manage withdrawals independently, as if they were the sole beneficiary.

You can open an inherited IRA at most banks or brokerage firms, although the simplest option is often to set it up with the firm that already holds your parent’s account.

You may take withdrawals faster if you choose, but distributions from a traditional IRA are taxable as ordinary income in the year taken.

Roth IRA withdrawals, however, are usually tax-free, provided the account has been open for at least five years.

If you fail to take an RMD or do not withdraw the sufficient amount, you will incur a penalty of 25% of the amount you were supposed to withdraw. The penalty will be reduced to 10% if the mistake is corrected within two years.

While it may be appealing to withdraw the entire amount from an inherited IRA at once or to make substantial withdrawals over a short period, such actions could result in significant tax liability. Withdrawals from a traditional IRA are typically subject to tax at your income tax rate.

For many heirs, spreading distributions over the 10-year period can help manage taxes and reduce the risk of being pushed into a higher tax bracket. Other strategies may make sense if your income fluctuates or you are nearing retirement.

To help navigate these decisions, consider working with a financial advisor. If you do not have one, you can find a financial planner through the National Association of Personal Financial Advisors at napfa.org.

“Savvy Living” is written by Jim Miller, a regular contributor to the NBC Today Show and author of The Savvy Living book.

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Foundation Grants Total $279,418 in 2025

T

he Foundation is excited to announce that it awarded $279,418 in grants in 2025 to support multiple churches and ministries across the Louisiana Conference and beyond.

These funds support projects that make a tangible difference in the lives of individuals and families.

The 2025 grants supported a wide range of meaningful initiatives, including: •

Providing occupational and speech therapy for children

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Promoting senior health through exercise programs

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Building and installing wheelchair ramps for low-income homeowners

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Providing youth ministry professionals with spiritual renewal, brainstorming and networking time with their peers

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Helping build a home for a hardworking single mother

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Expanding a community food pantry to serve more families

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Providing tuition assistance for K-12 students in impoverished areas

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Funding for equine therapy ministry, including the purchase of a horse, that brings healing and confidence to children and youth.

Each of these projects reflects the creativity, compassion and commitment of United Methodist churches and ministries as they serve others in the spirit of Christ.

All in a day’s work! Foundation Grants Coordinator, Britney Winn Lee, sharing a smile with Ellie, the newest member of the Outdoor Wilderness Lodge family at the Louisiana Methodist Children’s Home in Ruston. Because sometimes grantmaking looks like paperwork… and sometimes it looks like a horse named Ellie.

For a complete list of the Foundation’s 2025 grant recipients, as well as grant criteria and application information, go to the Grants page on our website at www.umf.org/grants.