Frequently Asked Questions
The Development team at Covenant Seminary is here to serve you. If you have a question you don't see answered here, please contact me, John Ranheim, Vice President of Advancement, at firstname.lastname@example.org or 1.800.264.8064.
What are the Federal Tax Identification numbers for Covenant Theological Seminary?
Covenant Theological Seminary Tax ID: 43-0863116
Can Covenant Theological Seminary serve as executor for an estate?
Neither Covenant Theological Seminary are allowed to serve as executor for any estate.
Can the Covenant Theological Seminary serve as Trustee of a charitable trust?
Generally, neither the Foundation nor the Seminary will serve as trustee of a charitable trust and will instead encourage the donor to use a professional fiduciary. However, Covenant Theological Seminary may serve as trustee of a charitable remainder trust upon approval of the board of directors for charitable remainder trusts where at least 50% of the remainder is irrevocably designated to the Foundation. Neither the Foundation nor the Seminary will serve as trustee of a revocable trust agreement or of a charitable lead trust.
What are the ways in which a donor can designate their gift to the Covenant Theological Seminary through his or her will?
Donors can bequeath a specific amount or a percentage of their estate for either specific or general purposes. We suggest the following language.
1. Bequest of cash - "I bequeath the sum of $XX,000 to Covenant Theological Seminary of St. Louis, Missouri, to be used for [indicate gift purpose]."
If a gift purpose is added to a bequest, please refer to our Donation Guidelines for Permanent, Temporary and Named Funds for guidance.
2. Bequest of a percent of the estate - "I devise and bequeath 50% of the remainder and residue of property owned at my death—whether real or personal and wherever located—to Covenant Theological Seminary of St. Louis, Missouri. "
3. Contingent Bequest - "If my brother John Doe survives me, I devise and bequeath 20% of the remainder and residue of property owned at my death, whether real or personal, and wherever located to John Doe. If John Doe does not survive me, then I devise and bequeath 20% of my residuary estate, whether real or personal property and wherever located to Covenant Theological Seminary of St. Louis, Missouri. "
What are the guidelines for designated gifts and Named Funds?
For a more complete discussion please refer to our Donation Guidelines for Permanent, Temporary and Named Funds for guidance. A donor may designate a gift for many purposes: Scholarships, Faculty Chairs, Francis A. Schaeffer Institute, etc. Within the Foundation there are several opportunities to establish Permanent or Temporary Fund named in honor or memory of a family or loved one.
Named Permanent Funds include:
- Named Presidential Foundation Funds–This is the best way to permanently and perpetually help Covenant Theological Seminary. Presidential Foundation Funds require a commitment of $1,000,000 and will be used to provide annual support to the seminary in the area most needed.
- Named Field of Interest Funds–A donor may wish to perpetually benefit a particular area of ministry concentration emphasized by Covenant Theological Seminary. Such areas may include the Francis A. Schaeffer Institute, Worldwide Classroom, J. Oliver Buswell Jr. Library, Campus Landscaping, or others areas of particular interest to a donor. Named Field of Interest Funds may be established with a gift of at least $500,000.
- Named Scholarship Fund Levels
Founders Scholarships–Founders Scholarships annually provide 100% tuition for select MDiv students in their final year. It is given to students who show a high aptitude for pastoral ministry. A Founders Scholarship requires a commitment of $300,000 and may be named in honor or memory of anyone selected by the donor.
Ministry Leadership Scholarships–Ministry Leadership Scholarships provide 50% tuition each year for students who are committed to local church ministry upon graduation. A Ministry Leadership Scholarship requires a commitment of $150,000 and may be named in honor or memory of anyone selected by the donor.
Co-laborer Scholarships–Co-Laborer Scholarships provide an annual award to any student enrolled at Covenant Theological Seminary. A Co-Laborer Scholarship requires a commitment of $50,000. The award amount will vary each year but will normally fall within 3–5% of the balance of the Fund.
What if my gift is not designated for a particular area?
Undesignated gifts to the Seminary will be added to the Covenant Fund, which provides support to students in the form of scholarships and supports the Seminary in areas that need it most.
Undesignated gifts to Covenant Theological Seminary will be added to the Covenant Legacy Fund which is a permanent fund that provides perpetual annual support to students in the form of scholarships and supports the Seminary in areas that need it most.
What is the difference between a Permanent Fund and Temporary Fund?
With a Permanent Fund, all contributions—unless otherwise stated—are considered principle and remain in the Fund to generate earnings for designated purposes. Permanent Funds are accounted for separately on the books of the Foundation. The assets of each Permanent Fund are pooled with other assets of the Foundation and share pro rata in the investment income and expenses of the Foundation investment pool. Permanent Funds are designed to provide perpetual annual financial benefit to Covenant Theological Seminary.
With a Temporary Fund, all contributions may be distributed for the intended purpose in the current year or over a short term period. For ease of accounting and administration, Temporary Funds do not share in the investment income and expenses of the Foundation investment pool.
Do my clients get investment choices, or do they have to use yours?
The Foundation works with more several investment managers. We invest our assets in a diversified portfolio and seek the highest standards with all of our investment advisors. Our investment advisors are selected and monitored by our Investment Committee. A copy of our investment policy may be downloaded here.
Can my clients' families be involved?
We welcome and encourage donors to include their families in their charitable gift planning with Covenant Seminary.
What if my clients want to remain anonymous and keep their gift decisions private?
The Seminary and the Foundation strictly respects requests for anonymity. Donors who establish Named Scholarship Funds or Field of Interest Funds may request that distributions from their Scholarship Funds be anonymous.
How often will they receive information about their Gift Fund(s)?
The Foundation creates and sends statements reflecting activity in for all Named Funds at least annually.
Can I have a copy of your Annual Report, Newsletter, or Brochure?
Click here to view and download any of our publications.
How do I begin to guide my clients in charitable gift planning? What questions should I ask?
As a professional advisor, you are in a unique position to help your clients fulfill their charitable objectives in a manner most beneficial to them. Considering the following questions will help you and your client plan appropriately.
- What are my client's charitable interests? Which are most important?
- What type of giving vehicle or asset best fits my clients financial and tax situation?
- What are the financial needs of my client?
- Is there a way for my client to support their charitable interests and benefit their heirs?
What are some common financial situations that often lead to charitable opportunities?
- Potential sale of appreciated real estate
- Closely held stock
- Sale of disposition of highly appreciated stock
- Sale of a business
- Substantial IRA/401(k) assets
- Life Insurance assets
What options do I have for charitable giving if I own stock in a closely held company?
Often individuals have an interest in charitable giving but limited liquid assets. In the case of closely held stock, we can help structure an arrangement where your client donates company stock to the Foundation (after proper valuation), and the company repurchases the stock at fair market value.
Do you charge advisors or donors any fees?
Certainly not! Our goal is to work with Professional Advisors in a way that helps them serve the charitable interest of their clients. Our desire is to enhance and never diminish your role with your client
How does Covenant Theological Seminary make my job easier?
By providing a free resource for charitable planning. Through our Web site, we provide a complete up-to-date charitable gift law reference, extensive personalized will planning through our individual password protected Web site, and a deduction calculator for the following:
Remainder Unitrust–A tax-exempt unitrust pays five percent or more each year to the recipients for one or two lives or for a specified term.
Remainder Annuity Trust–An annuity trust pays a fixed amount equal to five percent or more of the initial corpus for one or two lives or for a specified term.
Lead Unitrust for Term of 1–35 Years–This lead unitrust may pay any percentage amount to qualified charities for one to 35 years, with remainder to family or family trust.
Lead Annuity Trust for Term of 1-35 Years–This lead annuity trust pays a fixed amount each year to a qualified charity for from 1 to 35 years, with remainder to family or family trust.
Charitable Gift Annuity–The charitable gift annuity makes fixed payments for one or two lives. Part of the payout may be tax free.
Deferred Gift Annuity–The deferred gift annuity makes fixed payments for one or two lives. Part of the payout may be tax free.
We can provide client customized calculations and presentations on each of the above.
How can the Foundation fit into my clients' estate plans?
The Foundation will work closely with you and your clients to create a planned gift that first considers their goals and desires and secondly considers the benefit to the Foundation.
Who can answer the bequest and legacy questions of an executor/trustee?
Please direct inquiries to any of our directors of development.