Are you considering funding a charitable remainder trust with real estate to support a ministry close to your heart?

A charitable remainder trust funded with real estate might be ideal for you if you:

• have appreciated real estate you’re considering selling
• wish to avoid paying tax on the capital gains
• would like to receive supplemental retirement income
• want to financially support a ministry you love

How a charitable remainder trust works:

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

Making a year-end donation to WELS using appreciated assets such as stocks, bonds, mutual funds, and real estate provides you with several advantages.

The timing allows you to maximize tax benefits before the close of the year. You receive a charitable deduction and avoid capital gains taxes, which means more support for the ministry to which you are donating.

Find procedures for giving securities on the Helpful Giving Tools page of the WELS Foundation website or download the gifts of securities procedures document.

Please note: Stocks/mutual funds must be received by WELS by Dec. 31. The date of transfer is the date of the gift. This may take a few days, so the earlier the better. Please inform WELS of what you are donating by contacting WELS Foundation at [email protected] or 414-256-3213.

Need assistance? Contact your local WELS Christian giving counselor at 800-827-5482 or [email protected].

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.

Joyce and Don Frisque

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].

Eddie and Robert Verhelst, brothers from South Dakota, are third-generation farmers, working the land passed down through their parents and grandparents. Out of gratitude for the Lord’s blessings, they wished to set up planned gifts to support Christ’s gospel work. “We wanted to do something to share back our wealth,” says Eddie. “God has been so good to us.”

In the early 2000s, Eddie and Robert met with WELS Christian giving counselor Ken Dierks, who introduced them to charitable remainder trusts. After Ken retired, Christian giving coun­selor (CGC) Scott Wagner nurtured the relation­ship with the brothers, providing them with gift illustrations from WELS Foundation showing how they could fund charitable remainder trusts using stock that they held.

In late 2022, the brothers worked with their legal and tax advisors and WELS Foundation to establish charitable remainder trusts. Once established, they transferred their stock to the trusts, with WELS Foundation serving as trustee.

The brothers are grateful for the guidance from CGC Scott Wagner and the services provided by WELS Foundation. They also appreciate the income tax deduction they received and the fact that they didn’t have to pay capital gains tax on their gift. In addition, Eddie and Robert will receive income payments from the trusts for their lives, which they plan to use as additional gifts to support the charities they love. When the Lord calls them home, the remainder in the trusts will support WELS ministries.

“If you have stock to donate, this is a wonderful way to do it,” Eddie says. “It’s a win for every­body and a win for God’s kingdom.”

This is one way to use a charitable remainder trust. Learn more about charitable remainder trusts by contacting your local WELS Christian giving counselor at 800-827-5482 or [email protected].

Donors 70.5 and older have enjoyed making tax-free qualified charitable distributions (QCDs) from their IRA that also count toward their yearly required minimum distribution (RMD). Legislation passed at the end of last year, known as SECURE Act 2.0, allows donors to fund a charitable gift annuity (CGA) through a QCD.

An individual can now make a QCD of up to $50,000 (out of the $100,000 overall annual limit on IRA qualified charitable distributions) into a CGA in one calendar year. A husband and wife can each distribute up to $50,000 from their IRAs in one year for a CGA (maximum $100,000). A CGA provides the donor and/or his/her spouse with fixed quarterly payments for life. Then, after the donor goes to heaven, the remainder of the gift goes to ministries chosen by the donor.

The QCD into a CGA counts toward the RMD for those required to take it (as of 2023 the age at which RMDs must begin has been raised to 73). Since it can only be done in one tax year, it may make sense to consider distributing the maximum $50,000 amount when you decide to do it. The distribution can be split between multiple CGAs in one year as long as the total doesn’t exceed the $50,000 limit. Because the QCD is a tax-free distribution from your IRA, there is no tax deduction for the gift and the CGA payments are fully taxable.

You might want to consider this new giving opportunity if:

• you do not itemize on your taxes.
• you want to provide an income stream to you and/or your spouse.

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 are age 70.5 or older, you can support WELS ministries and churches through a gift directly from an individual retirement account (IRA) called a qualified charitable distribution (QCD).

Why is a QCD such a good giving option?

• Giving directly from your IRA—rather than withdrawing these funds—won’t increase your adjusted gross income or subject your Social Security income to more taxes.
• Such gifts can count toward all or part of your annual required minimum distribution (RMD). While IRA owners age 70.5 or older can make gifts directly to charities from their IRAs, the minimum age for taking RMDs has increased to 72.
• QCD gifts can be especially advantageous for those who do not expect to itemize their deductions and for those whose deductions are limited.
• You may make QCD gifts in any amount up to $100,000 per person per year or $200,000 for a couple with separate IRAs. Because of recent tax law changes, you may be able to continue to add to an IRA after age 70.5. If this is your situation, the amount of QCD gifts you can make will be reduced.*

Learn more about making QCDs from your IRA at wels.net/helpful-giving-tools or by contacting your local WELS Christian giving counselor at 800-827-5482 or [email protected].

*As a result of the SECURE Act, if an individual with earned income continues to make deductible contributions to an IRA beyond age 70.5, the individual’s maximum QCD amount will be reduced by the amount of deduction claimed for an IRA contribution.

Helpful Giving Tools

WELS Foundation provides resources to support you in your giving, such as:

• Fillable Letter of Instruction form
• Gifts of Securities Procedures document
• Qualified Charitable Distribution procedures
• Online Gift Options tool
• Estate Planning Guide
• Different Ways to Make Planned Gifts booklet

WELS member and attorney David Nommensen and his wife, Bonnie, knew that setting up a donor advised fund was an ideal and tax-wise way to support ministry at their home congregation, First Lutheran in Elkhorn, Wis.

David likes the fact that their donor advised fund provides predictable, ongoing support to ministry at First, helping fund programs that spread the gospel both inside and outside the church and school. He also likes the tax benefits of the donor advised fund. “It was just part of good stewardship,” says David. “Bonnie and I could look at the taxes that we had saved and do a little soul-searching and perhaps give a little more.”

Donor advised funds are very popular since a donor can give a gift now and recommend the ministries that benefit later. The gift can be divided among the ministries the donor cares about, and a single receipt will be provided for income tax purposes.

In addition to ongoing support for their church and school, the Nommensens know that their family donor advised fund is a wonderful way to involve their kids and grandkids in the joy of giving since they can be included in the decision-making process for the grant recommendations. It’s another way to pass along Christian values to the next generation of believers.

“Our prayer is that the donor advised fund is around a lot longer than Bonnie and I are,” says David. “And it’s a nice opportunity for us to have these conversations with our children about the needs of our favorite church organization. I’m really hoping that someday my grandchildren and great-grandchildren will be donating to this fund and having those same conversations.”

How does a donor advised fund work?

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

See David’s full donor advised fund story 

There are many ways you can support WELS and its mission to spread the gospel of Jesus Christ. One wise tool for personal financial planning may be a charitable remainder trust (CRT). These trusts are used to convert appreciated property into a gift to advance the gospel while providing an income for the donor(s) for life or for a term of years.

For example, a WELS member purchased an asset (stock, real estate, rental property, etc.) that has grown in value so much that rebalancing the portfolio or reducing the holdings has become financially prudent. By giving the appreciated asset to WELS Foundation to be put into a CRT, the Foundation can sell the asset within the CRT and create a balanced portfolio that pays an income to the beneficiaries for life or a term of years. The member receives an income tax deduction and spreads out the capital gains over the term of the trust. Furthermore, these deductions can eliminate tax on a significant portion of income for up to six years. They may also make it possible for you to itemize where it would otherwise not be feasible.

One additional benefit that may apply is that the trust remainder that distributes to ministry is excluded from any potential estate taxes. But most importantly, the gospel is advanced because of the gift. WELS Foundation has established a minimum gift for such an arrangement at $200,000 in fair market value.

Find out more about the CRT by consulting with a WELS Christian giving counselor at 800-827-5482 or [email protected].

Helpful Giving Tools

WELS Foundation has made it easier to access resources to support you in your giving, such as:
• Letter of Instruction form
• Gifts of Securities Procedures document
• Qualified Charitable Distribution (QCD) Procedures document
• Link to the online Gift Options Tool

To access these resources, visit wels.net/helpful-giving-tools.