We all hope to save — whether it’s for our next vacation, car, or children’s college tuition.
Now you can save for your long- and short-term goals while giving to a charity of your choice.
Today, John Burns, director of advancement at the BIC Foundation, shares how opening an investment account with the BIC Foundation can be a tool for philanthropy.
Q: How can opening an account with the BIC Foundation enable us to give to a ministry of our choosing?
Most folks keep funds in a low-yield account. Perhaps you have cash sitting idly in a checking account. Or a lump sum hiding under your mattress. Or a savings account accruing minimal interest.
Instead, you can open an account with us and designate a percentage of your interest from that account to ministries and charities.
Q: If I became an investor, would I need to donate all my interest to charity or just a portion of it?
You have total control to give as much or as little interest to charities as you want.
Our ministry accounts are very flexible. You have the option to redirect your interest at any time to a different charity or to keep it for your own needs.
Q: Can you tell me more about your savings products offering this opportunity?
We offer two ministry investment account options:
First, we provide an investment account called the Ministry Thrift Accumulation Plan (commonly called a ministry TAP account), which is similar to a traditional money market account. You can access funds at any time, and there are no fees. You can open an account with as little as $5. This account earns interest, and rates are currently between 0.75 and 1.00%.
Second, we provide Ministry Stewardship Investment Certificates (commonly known as ministry SICs). They are similar to a certificate of deposit (CD) — providing higher interest rates than our TAP accounts. However, you cannot withdraw your funds until they reach maturity — between 6 months and 5 years — without a small penalty. SIC interest rates currently range from 1.5% to 3.0%, depending on the term of the certificate.
Q: What are some reasons for opening a ministry investment account?
It’s a great opportunity to give to ministry without sacrificing principal. Simply invest your money with the Foundation, and the interest earned goes to charity — the invested principal funds remain yours.
These investments are ideal for a savings or emergency fund or a retirement account because they are liquid. They can be withdrawn immediately (TAP accounts) or between 6 months and 5 years (SICs).
They are also good options for starter accounts for children or grandchildren.
Q: Is the BIC Foundation transparent about their investing practices?
You know exactly where your money is being invested in the BIC Foundation. As part of our Brotherhood Loan Fund, your funds are being loaned as mortgages to churches and pastors, so they can, ultimately, further the Kingdom of God.
Q: How is the BIC Foundation ministry-minded?
As we mentioned above, we can give you the opportunity to donate the interest earned to the charity of your choice. In addition, the principal is loaned to BIC pastors for home mortgages and to BIC churches and ministries for their building projects and renovations, so they can better meet the needs of their communities.1 And, as pastors and churches pay us back with interest, we are able to use those funds to pay interest to our investors, which they can then donate to ministry.
It’s a circular investment that benefits everyone — the investors, the charities to which they donate, and our pastors and churches.
Learn more about ministry investments with the BIC Foundation.
1. A satisfactory portion of the invested funds are always retained by the Foundation in order to meet the needs of our investors if/when they wish to withdraw their funds.