YOUR GIFTS ARE CHANGING THE WORLD

There are three gift options Lutheran Foundation of the Southwest has created that let you choose the charitable option that is right for you.

1.

GIFTS THAT
Pay You Income

2.

GIFTS THAT
Make An Impact After Your Lifetime

3.

GIFTS THAT
Make An Impact After and During Your Lifetime

GIFTS THAT PAY YOU INCOME

CHARITABLE GIFT ANNUITIES

If you’d like to support the mission of one or more of our sponsoring agencies and receive steady payments during your retirement years, a charitable gift annuity may be right for you.

How It Works

Through a simple contract, you agree to make a donation of cash, stocks or other assets to The Foundation. In return, you receive (and someone else, if you choose) a fixed amount each year for the rest of your life.

In addition to providing a gift to The Foundation and receiving fixed payments for life, you also receive these benefits:

  • Your initial gift is partially income tax–deductible.

  • Your charitable gift annuity payments are partially income tax–free throughout your estimated life expectancy.

  • Your payments are not affected by ups and downs in the economy.

  • The gift annuity can be for one or two people, so your spouse or another loved one can also receive payments for life.

  • If you use appreciated stock to make a gift, you can usually eliminate capital gains tax on a portion of the gift and spread the rest of the gain over your life expectancy.

CHARITABLE REMAINDER TRUSTS

With a charitable remainder trust, you can receive income each year for the rest of your life from assets you give to the trust you create. Your income can be either variable or a fixed amount. After your lifetime, the balance in the trust goes to the charities of your choice.

Your Possible Benefits

A partial charitable income tax deduction

  • Potential for increased income
  • Up-front capital gains tax avoidance
  • Professional management of trust assets available

There are two types of charitable remainder trusts:

  • The Annuity Trust

    pays you, each year, the same dollar amount you choose at the start. Your payments stay the same, regardless of fluctuations in trust investments.

  • The Unitrust

    pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. The amount of your payments is redetermined annually. If the value of the trust increases, so do your payments. If the value decreases, however, so will your payments.

GIFTS THAT MAKE AN IMPACT AFTER YOUR LIFETIME

BEQUESTS

We hope you’ll consider including an endowed gift to one or more sponsoring agencies through Lutheran Foundation of the Southwest in your will or living trust. Called a charitable bequest, this type of gift offers these main benefits:

Simplicity.

Just a few sentences in your will or trust are all that is needed. The official legal bequest language for The Foundation is: “I, (donor name), of (city, state, zip), devise and bequeath to Lutheran Foundation of the Southwest (written amount or percentage of the estate or description of the property) per our distribution agreement with The Foundation.”

Flexibility.

Because you are not actually making a gift until after your lifetime, you can change your mind at any time.

Versatility.

You can structure the bequest to leave a specific item or amount of money, make the gift contingent on certain events, or leave a percentage of your estate to us.

Tax Relief.

If your estate is subject to estate tax, your gift is entitled to an estate tax charitable deduction for the gift’s full value.

How It Works

To make a charitable bequest, you need a current will or revocable living trust.

Your gift can be made as a percentage of your estate. Or you can make a specific bequest by giving a certain amount of cash, securities or property. After your lifetime, The Foundation receives your gift.

Putting Your Family First

When planning a future gift, it’s sometimes difficult to determine what size donation will make sense. Emergencies happen, and you need to make sure your family is financially taken care of first. Including a bequest of a percentage of your estate ensures that your gift will remain proportionate no matter how your estate’s value fluctuates over the years.

BENEFICIARY DESIGNATIONS

Naming the individuals and charities that will receive your assets once you are gone can be a simple process. Most assets can pass to your intended beneficiaries by the terms of your will. Other assets, such as retirement plans, life insurance and insurance annuities, however, are not controlled by the terms of your will. These assets instead require separate beneficiary forms.

The beneficiaries of these assets can be easily modified at any time to meet your changing needs:

  • IRAs and retirement plans
  • Life insurance policies
  • Insurance annuities

GIFTS THAT MAKE AN IMPACT AFTER AND DURING YOUR LIFETIME

DONOR ADVISED FUNDS

A donor-advised fund, or DAF, is a philanthropic vehicle established at a public charity. It allows donors to make a charitable contribution, receive an immediate tax benefit and then recommend grants from the fund over time. An easy way to think about a donor-advised fund is like a charitable savings account: a donor contributes to the fund as frequently as they like and then recommends grants to their favorite charity when they are ready.

  • You make an irrevocable contribution of personal assets.

  • You immediately receive the maximum tax deduction that the IRS allows.

  • You name your donor-advised fund account, advisors and any successors or charitable beneficiaries.

  • Your contribution is placed into a donor-advised fund account where it can be invested and grow tax free.

  • At any time afterward, you can recommend grants from your account to charities of your choice.

How It Works

 

 

LIVING TRUST

Living trust, sometimes called “management trusts,” protect your assets in your lifetime, and allow The Foundation to assist with your financial care at the end of your life. When you die, assets are passed to your heirs over a set period of time without probate. During distribution the interest earned creates a permanent endowment for the charity of your choice.

FOR CONGREGATIONS

We offer low-cost, professionally managed investment options for church endowments. We can also help you to establish and/or build your endowment funds through legacy gifts.