Answers for boards, donors, and ministry leaders

Yes. Our Board Onboarding Toolkit is designed specifically for new finance committee members with no financial background. It covers basic concepts, fiduciary duties, how to read investment reports, and how to ask good questions at board meetings. Available as a self-paced online module or facilitated workshop.

You can establish an endowment with an initial deposit. Many organizations start with a modest amount and grow the fund over time through planned gifts, memorial donations, and annual contributions. The most important step is adopting a board-approved endowment policy and investment policy statement — we help with both at no additional cost.

A spending policy governs how much of the endowment's value can be distributed each year. The most common approach is a percentage-of-average-market-value model — typically 4–5% of the endowment's trailing 12-quarter average value. This smooths distributions across market cycles and preserves purchasing power over time. Your board should adopt a written spending policy as part of the endowment's governing documents.

No. We work with churches and ministries across a wide range of denominational backgrounds. Our primary criterion is mission alignment — we partner with organizations whose values align with our faith-forward approach to financial stewardship.

Faith Foundation Northwest is a 37-year-old faith-based financial services organization serving churches, nonprofits, and donors across the Pacific Northwest. We provide investment management, ministry lending, stock gift processing, grants, and financial education.

These mini-grants are intended to help as many communities as possible spark creative, mission-aligned work. They are not designed to launch projects that will require ongoing or annual funding. Please do not apply for a project that depends on repeat gifts in future years. Instead, consider one-time initiatives or pilot efforts that your community can sustain independently after the grant period.

No, applications do not roll over. You need to apply for each cycle separately.

Applications are evaluated based on the alignment with the foundation's mission, the potential impact on the community, and the clarity and feasibility of the project plan. The scoring rubric covers: Project Description (4 points) — two points for impactful outcomes tied to community mission, two points for measurable objectives; Project Timeline (1 point) — realistic timeline with clear milestones; Budget Breakdown (1 point) — reasonable and clearly itemized budget; Benefit (2 points) — one point if beneficiaries are in an EPA IRA designated disadvantaged community, one point if beneficiaries are primarily members of marginalized groups; Creation (2 points) — one point if beneficiaries are co-creating the project, one point if project leadership includes members from marginalized groups. Total possible score: 10 points.

Previously funded projects include: supporting a ministry providing showers and laundry for the homeless, kitchen upgrades for a church becoming a resilience hub, sewer hookups for a transitional housing tiny home village, a healing retreat for BIPOC women leaders, a walk-in freezer for weekly community meals, an AED in a fellowship hall, a group respite program for adults with dementia, twice-weekly community meals at a community church, supplies for a low-income preschool, building a community garden supporting food insecure families, and campus ministry support.

Mini-grants are small, unrestricted funds ranging from $1,000 to $3,000, designed to support faith communities in their mission-related activities.

The funds are unrestricted, meaning they can be used for any purpose that supports your community's mission and goals. However, we do not provide grant funding for consulting fees.

Applicants must provide: organization and contact information, project title, project description and timeline, budget breakdown, an explanation of how the project aligns with your mission, a description of the expected community impact, and methods for measuring project success.

Excellent response example: A community dog park project with two clear long-term outcomes — "Strengthen community connections by providing a welcoming and inclusive gathering space" and "Encourage responsible pet ownership and outdoor activity as part of holistic well-being." Each outcome includes specific, measurable objectives such as "Host at least four community events per year" and "Partner with at least two local organizations to co-host events." The response explicitly connects the project to the organization's mission of fellowship, stewardship of creation, and community outreach.

Poor response example: "We want to build a dog park so people in the church and neighborhood have a place to bring their dogs. Right now, there aren't many places nearby, and this would be convenient. The park will be fenced and have some benches." This lacks measurable objectives, community engagement details, and clear mission alignment — all critical evaluation criteria.

Applicants will be notified of the decision within 30 days after the application period closes. Notifications will be sent via email to the contact person listed in the application.

Applications are open from March 1 to March 31. Applications must be submitted by 11:59 PM on the last day of the application period.

For more information or assistance with the application process, please contact us at staff@faith.foundation or call (509) 782-2954. Our office hours are 8 AM to 4 PM Pacific, Monday through Friday.

Eligible applicants include 501(c)(3) organizations or those registered as religious organizations.

We review all portfolios quarterly and rebalance when asset allocations drift more than 5% from targets. You'll receive a quarterly report and our market commentary before each review cycle. Your assigned advisor is also available for ad-hoc board briefings.

Our portfolios exclude companies with significant revenue from tobacco, weapons manufacturing, gambling, adult entertainment, and private prison. We also apply positive screens for companies demonstrating strong environmental stewardship, labor practices, and community impact. Specific screening criteria are detailed in each portfolio's Investment Policy Statement.

Contact us to discuss minimum investment requirements for each portfolio strategy. For organizations with smaller operating reserves, we recommend our Stable Value Portfolio, which is designed for short-term liquidity needs.

No. Although Faith Foundation Northwest has deep roots in the United Methodist tradition, congregations do not have to be United Methodist to qualify for a loan. We serve churches and faith-based organizations across Alaska, Idaho, Oregon, and Washington.

We disburse funds by direct deposit. Payments begin the first day of the second month following distribution of funds, and are made via ACH through our secure portal.

After we receive a complete application, our loan committee is usually able to make a decision within several weeks. After that, we order a title report and originate the legal documents. If the loan is small and the title report is clear, things progress quickly. Once all parties are comfortable with the documents, the church trustees work with the title company to sign, notarize, and record them. As soon as they're recorded, you can request your first draw.

As of late 2023, the Foundation is able to independently make loans up to $800,000. If you need a bigger loan, we have several other lenders ready to participate and help us make your loan happen — so don't be shy about asking! The actual amount depends on your project and your church's repayment ability.

Term loan rates are set below the Wall Street Journal Prime Rate. Bridge loan rates are set a little above WSJ Prime. Rates are fixed for four years and then reviewed each following fourth year. Adjustments, both up and down, can be made upon each four-year anniversary.

We don't charge any fees unless our underwriting requires site visits. The cost of title insurance is added to the loan principal. In the case of a large and/or complex loan, the cost of legal counsel is also added to the loan principal. There are never penalties for early repayment.

For term loans, we use the 30/30 rule to determine eligibility and loan amount. This is a guideline our loan committee uses to assess your church's ability to service the debt. For bridge loans, we focus more on the loan-to-value ratio rather than the 30/30 rule.

A Deed of Trust recorded in first position is required for all loans.

We offer two loan types. Term loans (available since 1992) finance new construction, retrofitting worship space for outreach, and capital improvements like paving parking lots, repairing roofs, and replacing HVAC systems. Bridge loans (available since 2019) support special projects like solar panels and pre-development for affordable housing.

Yes. Refrigerants have to comply with Washington Department of Ecology and EPA global warming potential rules. Low-GWP refrigerants listed by CARB or the EPA SNAP program should be used where that's technically and economically feasible.

Generally, your installer will ensure such compliance. As needed, our Technical Advisor can confirm during bid review.

While State HEAR allows administrators to rebate such items, our program funds space conditioning only.

Yes, as long as all rebates together do not exceed 100% of your project cost. One restriction: you can not receive rebates from two different State HEAR–funded programs for the same project, unless the Washington State Department of Commerce has authorized the two programs to collaborate. If you are not sure whether another rebate you are pursuing is State HEAR–funded, ask us.

Yes. Technical support is available throughout the application window. Email rebates@faith.foundation with any questions. We will reply, usually within two business days. If a question needs a conversation, we can set up a call.

No. Weatherization and building envelope work is not eligible.

One narrow exception: limited insulation, drywall, or duct work is covered when genuinely necessary to install and operate the equipment. E.g., sealing a section of duct your contractor opens up to install the heat pump is eligible. Adding wall insulation the contractor happens to notice is missing is not.

Yes. We can also suggest qualified installers, on request. Our Technical Advisor will review all bids before installation begins to confirm equipment qualification; you never buy a system that turns out to be ineligible.

Yes! Please do.

No. This program is open to any 501(c)(3) nonprofit in Washington that meets the eligibility criteria.

Faith Foundation is an independent foundation. We do not ask about denominational affiliation, nor consider it in scoring.

No. While census tract designation is a priority in scoring, it is not an eligibility requirement. At least 40% of our rebates will go to applicants in an OFM-designated Overburdened Community or a census tract ranked 8, 9, or 10 on the Department of Health's Environmental Health Disparities map. Applications from outside those tracts are fully eligible and fully scored.

No match is required.

Yes. Any HVAC and electrical work requires some permits.

Permit fees are an eligible expense, including permits for decommissioning the old fossil fuel equipment.

The rebate is paid to your organization. That means you hold the installation contract directly; we do not subcontract the work. Prevailing wage is not a concern of this rebate. You may wish to contact Department of Labor & Industries for your specific arrangement.

You do not need to work through the standards yourself: send us the bid and we can tell you. If you or your contractor want to check in advance, equipment has to be certified by the below standards at the time we approve it. Equipment without these certifications can be used only if it can be shown to meet equivalent technical criteria.

If your contractor is proposing something outside the list, feel free to send us the specifications, along with the bid. We will review it.

The specific term of the period will be included in Memoranda of Agreement. Retained project documentation includes bids, invoices, permits, utility bills, and the signed agreements.

Up to $75,000, covering 100% of eligible purchase and installation costs.

The full checklist is on the Program Details.

The answer can depend on your organization’s circumstances. We advise you to ask your own tax advisor to confirm.

Only if it comes as part of the heat pump equipment package. A thermostat purchased separately is not eligible.

Not through this program. Our rebates fund conversions away from fossil fuels. So, only spaces currently using a fossil fuel system for heating or cooling qualify.

Note: State HEAR rules do allow replacing heat pumps that are at least ten years old. We may be able to refer you to another administrator who may help for those purposes.

Yes, and early. As good stewards of funding, we want to ensure that each selected project is successful.

Possibly. Retroactive payments are an option, but depend on specifics and on the Washington State Department of Commerce's requirements for the contract period. If you are interested, contact us with dates and details of what was installed.

Yes. Your lease has to allow improvements to the structure, and both the rebate and the resulting utility savings have to benefit your organization. Your landlord may be asked to sign an agreement confirming they will not evict you or raise your rent because of anticipated energy improvements, and that such conditions would pass to a buyer, if the building sells.

Your landlord may apply directly, as long as they meet the eligibility criteria themselves. If your landlord does not qualify but you do, the application should be yours.

A group ruling suffices. A group ruling letter is accepted in place of an individual determination letter.

Faith Foundation will not contract for installation. Before work begins, we will review your bid to confirm the equipment meets the program's certification standards. Send it through your customer. Specific standards are listed above.

An itemized bid. The invoice should include: equipment type, brand, model number, certification numbers, and efficiency ratings; itemized costs; and permit numbers once pulled. Commerce requires all of it in quarterly reporting, and a complete invoice moves payment faster.

If you propose equipment outside the certification list, include the specifications so our Technical Advisor can assess equivalence.

No documents are required to be submitted as part of the application process. If your organization is selected:

• Your IRS 501(c)(3) determination or group ruling letter
• A payroll readout showing staff size and hours with salaries redacted
• Contractor bids for Technical Advisor review
• If your project exceeds $75,000, documentation of secured funding required in excess of the award.
• After installation: utility bills from the month after installation and the same month a year prior.

Electric heat pumps for space conditioning: generally, air-source (ducted, ductless, or package terminal), plus any electrical service, panel upgrade, or wiring needed to support them.

If you have any questions about particular systems, ask us.

In sum, work necessary to install and run the heat pump is covered. Work the project merely reveals is not.

An incomplete list includes:

• Weatherization and building envelope work — windows, doors, insulation, air sealing
• Cooling-only air conditioning
• Electric resistance heating
• Any fossil fuel equipment, including fossil fuel heat pumps
• Thermostats purchased separately from the heat pump
• Portable or window air conditioners, heaters, or heat pumps
• Solar, batteries, or other energy-generating or energy-storing equipment
• EV charging equipment
• Repair or maintenance of existing equipment
• Utility connection or service fees
• Remediation uncovered during removal — asbestos, rodent damage, rot
• Extended warranties, unless bundled into your installer’s price
• Upgrades to utility transmission or distribution systems outside your building

Your organization will be responsible for any difference. We will require that you demonstrate secured funding for that remainder as a stipulation of a Memorandum of Agreement.

While removal of the old equipment is covered, remediation is not. Any such costs have to come from another source. In an older building, we recommend budgeting a contingency before you start.

We will conduct a video site visit to confirm standards are met, including display of a sticker on the equipment noting equipment as funded by Climate Commitment Act funding. You will send us your first utility bill after installation along with the same month's bill from the year before. Finally, you may sign a Closeout Memorandum.

Generally, applications will be accepted from September 1 through September 30, 2026.

October 2026. When you hear from us, we will tell you whether you are selected, placed in reserve, or not funded this cycle.

Selected applicants install between October 1, 2026 and January 31, 2027. Reserve applicants install between February 1 and April 30, 2027, if funding remains.

Washington's Climate Commitment Act, administered through the Washington State Department of Commerce's State Home Electrification and Appliance Rebates Program. This is state funding.

You do. The rebate is paid to your organization. You choose your installer, hold the contract, and pay them directly. Faith Foundation will not be a party to that agreement. You submit the invoice to us (generally, post-installation) and we pay on it as soon as practicable. We hope to limit any carry of a $75,000 project on your own balance sheet.

A primary goal of this program is to reduce fossil fuel emissions. We would like to measure that impact.

We verify installation by video site visit. Separately, the Washington State Department of Commerce may conduct monitoring that can include desk reviews, document requests, virtual visits, and on-site visits. These may occur during the award period and/or the records retention period afterward.

The application's scoring system created an advantage for applicants who were located in communities that are overburdened and highly impacted (as identified by the Justice40 Initiative's Climate and Economic Justice Screening Tool); were located in counties where no award had been made yet; were powered by fossil fuels (with the biggest advantage for households whose appliances create the worst indoor air quality); had income at or below 115% of Area Median Income, with the biggest advantage for income under 80% AMI (households above 150% AMI were not eligible); or had one or more members who belong to a vulnerable population.

Awards were made on a rolling basis from the fall of 2024 through the spring of 2025. We disbursed the final funds in June 2025.

This grant was primarily for heat pumps, but it also paid for smaller Energy Star rated electric appliances as needed, including clothes dryers, water heaters, and induction stovetops. When needed, the grant also paid for electrical panel and wiring updates to parsonages so the electric appliances could be safely installed.

People who live in church-owned residences in the state of Washington were eligible to apply. About 50% of Washington parsonages house pastors, and the other 50% are rented out to community members. Pastors and renters were all eligible. Church trustees were not eligible to fill out the application; only parsonage residents could apply.

Washington applied for and won Home Electrification and Appliance Rebates funding from the US Department of Energy. Oregon won the funding too, but distributes it through qualified contractors rather than sub-grantees. Alaska and Idaho have not applied for this federal funding yet.

Yes, but probably not through the Foundation. This was a unique opportunity because the Washington State Department of Commerce was piloting the program and figuring out what worked, so they were willing to select and work with multiple small administrators. For future rounds, state entities will likely contract with fewer (larger) administrators because it is more efficient. If you search for "Home Electrification and Appliance Rebate" plus the name of your state, you can learn who is administering these awards in your area.

Start by adopting a gift acceptance policy that outlines the types of gifts your organization will accept (bequests, beneficiary designations, real property, etc.) and the procedures for receiving them. Then communicate the opportunity to your congregation — many donors are willing to include their church in their estate plan but simply haven't been asked. We provide a turnkey planned giving starter kit that includes policy templates, donor communication materials, and staff training.

Planned giving refers to charitable gifts that are arranged in the present but typically fulfilled in the future — often through a will, trust, or beneficiary designation. Unlike regular tithes and offerings, planned gifts draw from accumulated assets (real estate, retirement accounts, investments) rather than current income, and they often provide significant tax advantages to the donor.

Common planned gift assets include cash bequests through a will, retirement account beneficiary designations (IRAs, 401k plans), life insurance policies, appreciated securities, real estate, and charitable remainder or lead trusts. Each asset type has different tax implications. We work with donors and their advisors to identify the most tax-efficient giving strategy for their situation.

Yes. Many organizations allocate funds across two or more portfolios to match different objectives — for example, keeping operating reserves in Stable Value while investing endowment funds in the Moderate portfolio. Your advisor will help you design the right split based on your liquidity needs and investment horizon.

Operating reserves that you may need access to within 1–2 years are best suited for the Stable Value or Conservative portfolio. Long-term endowment capital with a 10+ year horizon can typically tolerate the Moderate or Aggressive portfolio's higher equity exposure in exchange for greater growth potential.

Yes. When you submit the stock gift form, you specify which ministry or organization should receive the proceeds. We liquidate the shares upon receipt and distribute the funds to your designated recipient, minus a small brokerage commission (typically under $5).

Once shares are transferred to your designated account, proceeds from the sale are typically available within 3–5 business days. We coordinate the entire transfer process and provide donor acknowledgment letters compliant with IRS requirements.

There is no minimum dollar amount for a stock gift. However, because brokerage fees apply to each transaction (typically under $5), very small transfers may not be cost-effective. Most donors find that gifts of $1,000 or more maximize the benefit.

You will receive a donor acknowledgment letter confirming the date of transfer, the number of shares, and the ticker symbol. The letter is compliant with IRS requirements for charitable contribution substantiation. You are responsible for determining the fair market value on the date of transfer for your tax return.

We accept publicly traded stocks, mutual funds, and ETFs. If you hold restricted stock, privately held shares, or other non-standard securities, please contact us to discuss options. The securities must have been held for more than one year to qualify for the full fair-market-value deduction.

When a donor gives appreciated stock directly to a ministry, they avoid paying capital gains tax on the appreciation and receive a charitable deduction for the full fair-market value of the shares. This means more of the gift goes to ministry, and the donor keeps more of their wealth. It's one of the most tax-efficient forms of charitable giving available.