When WELS members Willi and Pam Schultz were ready to sell a vacation rental condominium, they wanted to find a tax-wise way to do so that would not only benefit them financially but also allow them to support the ministries they care about.

When considering their options, a charitable remainder trust came to mind. “I had read about the charitable remainder trust strategy several times in WELS Foundation mailings over the years, and I had filed the idea away,” recalls Willi.

A charitable remainder trust turned out to be ideal for Willi and Pam’s situation. By donating their property into a charitable remainder trust instead of selling it, the Schultzes enjoyed a charitable income tax deduction and capital gains tax benefits. In addition, the retirement income they will receive from the charitable remainder trust will help offset the income they had been realizing from renting the condominium. And, once the trust ends, the ministries that Willi and Pam have chosen will benefit from their gift.

“It was a win-win-win,” Willi says. “The charitable remainder trust is a fantastic tax-saving and income planning tool!”

Pam liked how the charitable remainder trust fit perfectly into helping them support gospel ministry, like WELS Home Missions and training future pastors at Wisconsin Lutheran Seminary.

“We have been so blessed that we decided to give back to the Lord since everything we have has come from him,” Pam says gratefully. “We know that our blessings will continue to support the work of WELS here on earth even after we have gone to heaven. Nothing is more important than sharing Jesus with others!”

The Schultzes appreciated the partnership with their WELS Christian giving counselors and WELS Foundation staff, who walked them through setting up their charitable remainder trust. “They did an excellent job of helping guide the process,” says Willi. “The greatest benefit was working with people who have a heart for the Lord.”

Learn more about charitable remainder trusts or contact your local WELS Christian giving counselor at 800-827-5482 or [email protected] for assistance.

Are you looking to donate property to support a ministry you love?

One beneficial tool for supporting WELS ministry while enjoying tax benefits is the donor-advised fund (DAF). A DAF involves making an irrevocable contribution to WELS Foundation, then at any time thereafter recommending distributions to various WELS ministries.

When you donate property to a DAF, you can claim a charitable deduction based on the fair market value of the asset and avoid capital gains taxes that would otherwise apply to the sale of the property. One of the unique advantages of a DAF is the flexibility it offers to recommend distributions to different WELS ministries over time. Contribute to your donor-advised fund this year and decide later which WELS ministries you want to support. Your donations can be anonymous if you prefer privacy in your charitable giving.

One WELS couple recently donated a condominium to WELS Foundation to fund a DAF. They shared: “We have decided as a family not to wait until we die and then have our large gifts given to charity; we’d prefer to give it now so we can see, revel, and have joy in doing God’s work. The best thing about giving appreciated assets is it allows us to increase our offerings. With real estate there’s a little bit of work involved and there are always little obstacles that come up, but [the Christian giving counselor and WELS Foundation staff] were really quick to respond and help resolve issues.”

Another option for donating property is to simply give it (without establishing a donor-advised fund). You will receive the charitable deduction and avoid capital gains taxes all while supporting the gospel ministry of Christ’s Church.

Learn more about donor-advised funds or contact your local WELS Christian giving counselor at 800-827-5482 or [email protected] for assistance.

Pictured above: Members of St. Peter participate in an Everyone Outreach evangelism workshop

More than 20 years ago, the members of St. Peter, Schofield, Wis., realized their congrega­tion would benefit from forming a planned giving committee. One of the goals of the com­mittee was to actively promote to members what a blessing planned giving could be in supporting the gospel work of the congregation.

Member Bob Stasney has been part of the con­gregation’s planned giving committee since its inception. He recalls that the new committee ben­efited from the support of a WELS Christian giving counselor, who supplied startup resources and advice. “[The resources] were key in guiding us to establish policies that are very important to refer to over the years,” remembers Stasney.

Since that time, St. Peter’s planned giving commit­tee has been encouraging members in their giving by providing regular communication in the bulletin or newsletter about gifting tools. The committee also assists members who have questions about making planned gifts, directing them to their local WELS Christian giving counselor as needed.

Through God’s blessing, this targeted, support­ive approach has resulted in members setting up gifts to benefit the church through a variety of methods, like gifts of appreciated stock or gifts through a will or estate plan. Last year the con­gregation received several large gifts, including $220,000 to create an endowment and another $400,000 to further God’s ministry in multiple areas. Another $20,000 gift went to tuition assistance (the church’s scholarship program has distributed over $130,000 to families since its inception). St. Peter’s planned giving committee also oversees the congregation’s endowment funds and invests with WELS Investment Funds.

Stasney encourages other congregations to consider setting up a planned giving commit­tee, utilizing the resources and planned giving program manual available through WELS: “The current manual seems quite comprehensive and is a must-go-to for anyone starting from scratch.”

Stasney gives all credit to God for his blessings on St. Peter. “The Holy Spirit has worked miracles at St. Peter over and over again, and our members have historically been cheerful givers,” he says. “To God be all the glory.”

Learn more about starting a congregational planned giving program at wels.net/plannedgivingprogram or contact your local WELS Christian giving counselor at 800-827-5482 or [email protected] for assistance.

Congregations receiving larger gifts from members have long-term and short-term investment options through WELS. For long-term investing, WELS Investment Funds provides cost-effective, professionally managed investment portfolios exclusively for WELS and affiliated organizations. These funds are designed especially for endowment and scholarship funds.

Currently 255 WELS organizations have entrusted more than $300 million to WELS Investment Funds. Investors benefit from lower investment costs, oversight by a national board of directors made up of WELS members with relevant experience, the expertise of professional institutional investment consultants, and ease of use as investors work directly with professional WELS staff to set up and manage accounts. Explore your options at wels.net/welsfunds or by contacting [email protected] or 877-888-8953.

WELS Church Extension Fund (WELS CEF) provides short-term investing to congregations through one-year savings certificates and 6- to 60-month investment certificates. In addition to receiving competitive investment rates, congregations can appreciate that WELS CEF uses the investments to provide financing to mission congregations and mission-minded self-supporting WELS congregations and schools for land and facility projects. For more information visit wels.net/cef or contact [email protected] or 866-511-7793.

The maximum amount of qualified charitable distribu­tions (QCDs) you can direct to ministry from your IRA has increased in 2024 to $105,000 (previously $100,000), and the maximum you can distribute to WELS Foundation to set up a charitable gift annuity is now $53,000 (previously $50,000). This is because under SECURE Act 2.0 there is a yearly increase, indexed for inflation, in the annual limit of QCDs starting in 2024.

Learn more about qualified charitable distributions at wels.net/qcd.

 

For Don and Joyce Frisque, supporting Christ’s gospel ministry is close to their hearts. Joyce served as a WELS teacher for over 35 years, and Don served as a WELS teacher for 6 years and as a school social worker for 31 years. Their two children, Deb and Paul, have also devoted their lives to ministry.

When the Frisques retired, they planned to thank the Lord for his goodness to them. “God has blessed us, and we want to pass those bless­ings on,” Joyce says. “We don’t need anything more for ourselves, so we are going to give it back where we can to the church.” They also wanted to share their blessings with their children and grandchildren.

The Frisques knew that funding a legacy gift from their individual retirement accounts (IRAs) could help them fulfill their giving goals, but they were searching for the right type of planned gift. When they met with WELS Christian Giving Counselor Rev. Tom Mielke, he explained the benefits of a legacy charitable remainder trust.

Don and Joyce were intrigued. A legacy charitable remainder trust (often called a “give it twice” trust) would allow them to support both the people and the ministries they love, in addi­tion to providing tax benefits.

After consideration, Don and Joyce set up a legacy charitable remainder trust, with WELS Foundation serving as trustee. When they are in heaven, their children will receive quarterly income payments from the trust for 15 years. After that, the remain­der will support the multiple WELS ministries that the Frisques have chosen.

Don and Joyce appreciated Rev. Mielke’s assis­tance and the ease of filling out a single form, the Letter of Instruction, to select the ministries that will benefit from their trust. Joyce also loves the fact that after Jesus calls them home the trust will support their family members and the Lord’s work.

“Everything we have been given has been entrusted to us, and we are responsible for managing it in a God-pleas­ing way,” says Don. “In this way we believe we are doing that.”

Learn more about legacy charitable remainder trusts by contacting your local WELS Christian giving counselor at 800-827-5482 or [email protected].

. . . appreciated assets (stocks, bonds, mutual funds, real estate)?

Receive a double tax benefit when you give appreciated assets held longer than one year. First, you can deduct the full fair market value of the investment. Second, save by avoiding all tax on the capital gain.

. . . from your IRA?

Direct transfers from an IRA to charity (up to $105,000 per year) are free from federal and potentially state income tax for anyone 70.5 or older.

Want to learn more? A WELS Christian giving counselor can help you get started. If you are interested, call 800-827-5482 or e-mail [email protected].

If you desire to use appreciated property that may produce little to no income to support you or your family—and the Lord’s ministry—while avoiding taxes, the charitable remainder trust (CRT) might be right for you. Some who fit this category include farmers, investors, business owners, and landlords.

Here’s how it works:
A WELS Christian giving counselor (CGC) can provide you with gen­eral information and work with your advisors and WELS Foundation to establish the charitable remainder trust. Once established, you transfer cash, securities (stocks, bonds, mutual funds), or real estate to the trust with WELS Foundation serving as trustee. Charitable remainder trusts can provide income to you for life and/or to your children for up to 20 years. When it ends, the remaining property in the trust passes to your designated charitable beneficiaries such as your church and/or synod.

Here are the steps:

1. Meet with a Christian giving counselor and advisors; complete paperwork.
2. Transfer assets to the trust.
3. The trust makes payments.
4. The trust ends; the property passes to the charitable beneficiaries.

The benefits include:

• You will receive an income tax charitable deduction and you don’t have to pay capital gains tax on the gift.
• You and/or your children receive an income stream (quarterly payments).
• You can continue supporting the Lord’s work after you go to heaven.

The minimum gift size is $200,000. WELS Foundation’s recommended payout rate is five percent. Payments can be a fixed or variable amount. You can choose several income beneficiaries and the length of the trust term. WELS Foundation as trustee manages the assets for the benefit of the income beneficiaries and charitable beneficiaries.

 

Learn more about charitable remainder trusts by contacting your local WELS Christian giving counselor at 800-827-5482 or [email protected].

Watch a video about how WELS members Jerry and Lynn Zimpelmann support WELS mission work through their charitable remainder trust.

After 35 years of teaching, Arnie Nommensen began serving in a different way: as a WELS Christian giving counselor. In his role, Arnie met a WELS member who made quite an impression on him. This member had seen firsthand the blessings of charitable gift annuities (CGAs), so Arnie helped him set up multiple CGAs to leave a legacy of faith.

Motivated by this example and out of thankfulness for God’s blessings, Arnie knew that setting up CGAs to support the Lord’s work was also right for him and his wife, Carol. They knew that even after God calls them home, their CGAs will continue to support the ministries they love, like providing physical and spiritual support in Africa through WELS Christian Aid and Relief.

“You hear about things that WELS Christian Aid and Relief is doing in Africa for communities that really have a need, and that community then is also hearing the gospel from the people who are there to help them,” says Arnie. “The support that we can give through a charitable gift annuity will help provide that, and that’s something that can be carried on after we’re in heaven.”

CGAs are very popular since they provide quarterly income payments to the donor for life, in addition to significant tax benefits. When the Lord calls the donor home, the remainder will be distributed to the ministry or ministries of the donor’s choosing.

Carol appreciates how CGAs allow them to share their blessings with others: “They’ve given us the ability to use our financial gifts from the Lord to help or give back to him in a small way, because he gives us so much,” she says. “And it really gives us joy to do that.”

Run a personalized gift annuity illustration based on your age

Learn more about charitable gift annuities by contacting your local WELS Christian giving counselor at 800-827-5482 or [email protected].

Watch Arnie and Carol’s full charitable gift annuity story 

For those looking for new ways to support WELS’ mission to spread the gospel of Jesus Christ while still providing for their retirement needs, they may be surprised to learn about a way they can do both: the flexible deferred charitable gift annuity.

1. With this creative plan (which is a variation of the simple charitable gift annuity), you can meet current and future income needs. While IRS regulations limit contributions to IRAs, 401(k)s, 403(b)s, and other retirement plans, there are no such limitations with this plan.
2. You can create a plan that maximizes your current income tax deduction while retaining the flexibility of receiving payments at the time you choose.
3. Lastly, a flexible deferred annuity provides protection should an income need arise due to an uncertain future event (such as placing a relative in an assisted living facility or helping someone with in-home care). Payments can begin if or when the need arises.

A good example

As Bill and Jane prepared for retirement, they wanted to set aside resources to supplement their retirement income, while eventually benefiting a number of WELS ministries, including their home church. With the flexible deferred charitable gift annuity, they fulfilled these objectives.

Over a period of years, Bill and Jane created several flexible deferred charitable gift annuities and can begin receiving the payments in the future.

• They met part of their Christian giving goals, named their favorite ministries to receive the remainder of the annuities, and had large deductions to use against their current income.
• Annually they have the choice to begin receiving the payments.
• When the payments begin, they may decide to use their payments to support the Lord’s work and would receive additional income tax deductions for those gifts.

Charitable gift annuity illustration

 

 

 

 

 

 

For more information about this creative plan or charitable gift annuities, contact a WELS Christian giving counselor at 800-827-5482 or [email protected].

From time to time, a WELS member may be faced with a larger than expected financial blessing that opens the door for giving to the Lord’s work without enough time to distribute the extra blessing nor the desire to engage in multiple transactions to help several charities. Enter the donor advised fund (DAF), which permits you to make charitable gifts to those organizations you care about most, at the time you choose, often with expert advice and assistance.

The ABCs of a DAF
A DAF is like a charitable investment account for the purpose of supporting the WELS ministries you care about. When you contribute cash, securities, or other assets to a DAF, you are generally able to take an immediate income tax deduction as well as avoid capital gain taxes from the gift of appreciated property. Those funds may then be invested for tax-free growth, and you have the flexibility to recommend distributions from time to time to qualified WELS ministries. (Requesting distributions from your WELS Foundation donor advised fund is easy. Simply fill out WELS Foundation’s online request form.)

If you have a DAF, consider what will happen to the funds in the future when you are no longer there to make decisions about the disposition of funds. Either you can entrust the decision-making to your heirs on how the funds are to be distributed, or you can designate the remainder from a terminating DAF to create an endowment or fund a special project.

Using a DAF to itemize
With recent tax and economic changes, many people no longer itemize their deductions. With a DAF, an individual can bunch several years of charitable gifts into a single year, allowing them to itemize in that year.

More information
Over the past several years, there has been a substantial increase in the popularity of DAFs, and more people are giving to WELS in that way, which means a blessing for those who receive the Word of God through us. If we can provide more information about supporting your congregation, WELS, and WELS-affiliated ministries through a WELS Foundation DAF, please contact us at 800-827-5482 or [email protected].

Making Distributions from a Non-WELS Foundation DAF

To make a gift to support the gospel of Jesus Christ through WELS from your non-WELS Foundation DAF, contact your sponsoring organization to recommend a grant and give them the following:
• Our legal name: WELS Foundation, Inc.
• Our federal tax ID #: 39-6084446
• Our mailing address:
WELS Foundation
N16W23377 Stone Ridge Drive
Waukesha, WI 53188-1108