A Biblical Perspective on Endowments By Dr. Gary G. Hoag

A Different View of Endowments

The earliest recorded financial endowments date back to Rome in the second century. In A.D. 176, Roman Emperor Marcus Aurelius established endowed professorships for different schools of philosophy in Athens. By the Middle Ages, the establishment of endowments became a common practice across the Holy Roman Empire for religious and educational institutions.

But should Christian givers and institutions engage in this practice?

Core Definition

Endowments, by definition, provide perpetual revenue for a program or entity to avoid reliance on giving or income from other sources. This brings two operative words into view: revenue and reliance. While we find no biblical examples of endowments, God’s Word has much to say about revenue and reliance. This post aims to help us form a biblical perspective and offer insights for givers and institutions.

Revenue

Let’s start with revenue. Solomon sums up the world’s perspective on revenue, saying, “money is the answer for everything” (Ecclesiastes 10:19). Jesus describes the Pharisees as “lovers of money” (Luke 16:14-15). The Greek word philargyria, which means “love of money,” implies thinking that money is the answer to everything. No wonder Paul states that this mindset disqualifies a person from oversight in God’s house; God, not money, is the answer for everything (1 Timothy 3:3)!

God declared he would bless Abraham and his offspring to bless others (Genesis 12:1-3; 24:35). God supplied abundance for Joseph in Egypt for enjoyment and sharing. Joseph did not hoard but opened the storehouses, making the resources available for the good of all over seven years (Genesis 41:57-58). God desired this way of living for His people throughout the Old Testament, but the prophets proclaimed their failures (Amos 8:1-12; Micah 6:6-16).

In Acts of the Apostles, we see the Spirit of God and not money as the power of ministry. We also witness the enjoyment and sharing of wealth. When Barnabas sold the land and put the proceeds at the feet of the apostles, he put both principal and interest to work (Acts 4:32-37). The land represented the income-producing asset, which he sold for immediate use. To handle revenue in this way, then and now, emerges as distinctly biblical and contrary to cultural patterns.

Reliance

Regarding reliance, God desires that we trust in Him to supply. He allows us to produce wealth (Deuteronomy 8:18). It is the fruit of faithful work. Solomon reminds us that “riches do not endure forever” and urges their wise use (Proverbs 27:23-27). Holding on to wealth causes us to forget God (Proverbs 30:8-9). Look at the Ivy League schools as a modern example of this. They formed to train students for Christian service, built big endowments, and then forgot God.

When the rich fool decides to keep wealth for himself rather than enjoy and share it, he loses his life. God will distribute the wealth for the foolish ones who choose the path of disobedience (Luke 12:16-21). Reliance also appears as central in the Lord’s prayer. “Give us today our daily bread” (Matthew 6:11). God wants us to rely on Him for our basic needs. Faithful stewards entrusted with resources put them to work and return everything to the Master (Matthew 25:14-30).

No Biblical Support

After this sketch of biblical material on revenue and reliance, we find no support for endowments. We also discovered that setting aside revenue for a program or entity to avoid dependence on giving or income from other sources is the opposite of biblical mandates and can cause us to forget God. So, how should givers and institutions think and act regarding endowments? In Paul’s words, how can we handle gifts rightly “before God and man” (2 Corinthians 8:20-21)?

1. Don’t set up endowments. Invite large gifts to sunset over time. Joseph dispensed the plenty over seven years.
2. If you have endowments, get consent from givers to spend the principal and interest. Barnabas gave such consent.
3. A charity can petition a court to modify an endowment. Paul would urge this to comply with the law and honor God.

Faithful Stewardship

Churches, charities, and nonprofits must act prudently and in good faith when considering endowment changes. They must honor the giver’s intent. For example, if a giver wants to provide scholarships for students or salaries for faculty, encourage major gifts over a timeframe. Get consent or court approval to change an endowed scholarship or chair to give scholarships or salaries over a defined timeframe. This complies with the law and honors God.

The world links institutional sustainability to having a large endowment. God’s word links sustainability to obedience and the faithful stewardship of resources. Those who store up wealth choose a foolish and dangerous path, as this practice can cause us to forget God. Givers do well to make current or sunset gifts (for spending over a defined timeframe), and institutions do well to avoid or modify and spend down endowments while honoring the intent of the original gift.

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Gary G. Hoag, Ph.D., serves as President & CEO of Global Trust Partners (GTP). In obedient service to Jesus Christ, GTP multiplies faithful stewards and mobilizes peer accountability groups (like ECFA in the USA) to build trust and to grow local generous giving to God’s work. To learn more, visit gtp.org.

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