Tag Archive for: Grace of Giving 042022

The Donor Advised Fund: One-Stop Giving

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 mcg@wels.net.

See David’s full donor advised fund story 

Why a Donor Advised Fund?

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 mcg@wels.net.

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

Charitable Remainder Trusts: A Gift with Multiple Benefits

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 mcg@wels.net.

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.