Managing God’s Creation Through Your Gifts An Educational Presentation By The Immanuel Lutheran Church Foundation Immanuel Lutheran Church Foundation • Purpose – God is the Owner of all creation, but He entrusted us to manage this creation wisely for His purposes. Deep down inside, each of us wants to leave something behind. We want to leave a legacy. We want to be significant. We want an epitaph with substance. God put this desire in us because it is one of our purposes in life. – The Immanuel Lutheran Church Foundation was established to help us, as donors, with the opportunity to support the mission and ministry of Christ in our lifetime, and beyond, by receiving, managing and distributing funds according to our wishes. Immanuel Lutheran Church Foundation –By donating to the Foundation, we can take one step in helping to wisely manage God’s creation for His purposes. –The Foundation helps you in managing God’s creation by furthering the programs of Immanuel Lutheran Church by receiving charitable donations to be used for the future growth and expansion of the Church, the Immanuel Lutheran School and for other specific religious and charitable projects of the Church and the Christian Community. –The Foundation will not accept donations nor make any investment or expenditure that is contrary to the moral and spiritual standards of Immanuel Lutheran Church or the Lutheran Church Missouri Synod. Immanuel Lutheran Church Foundation •History –The Immanuel Lutheran Church Foundation was established by Immanuel Lutheran Church of Seymour and incorporated as a not-for-profit corporation in the State of Indiana in 1975. All members of Immanuel Lutheran Church are automatically members of the Foundation. –As a Foundation, it provides its members and other donors with significant tax advantages available for charitable contributions and estate gifts. It also empowers donors to choose the purposes for which the gift is to be used and whether or not the principle is to be spent or preserved. Immanuel Lutheran Church Foundation –The Foundation provides an outstanding investment value for the donor, since expenses are .0025 for every dollar received (one quarter of one percent). This means that earnings on funds invested go to the ministry designated, not for overhead costs. –In addition, using the expertise of professional counsel, the Foundation also manages a balanced portfolio that is designed to preserve and grow principle while also earning substantial returns to support the ministries that are the beneficiaries of the funds. Foundation funds are not used to support the general operations of Immanuel Lutheran Church unless so designated by the donor. Donors may wish to contribute to the Immanuel Lutheran Church Endowment Fund, proceeds of which may be used for the general purposes of Immanuel congregation. Immanuel Lutheran Church Foundation • Foundation Receipts and Disbursements – Over the past 33 years, since its inception in 1975, the Foundation has grown to over $1,700,000 in assets that are being used to carry on the programs of the Foundation, as specified by the donors. – The Foundation’s assets have grown to this level from its inception on June 6, 1975 to September 30, 2008, as follows: Immanuel Lutheran Church Foundation Immanuel Lutheran Church Foundation • How are Contributions Received? – Gifts of any amount may be made to the Foundation. Cash, stocks, IRA direct transfers, mutual funds, property, life insurance policies, or other assets may be gifted directly to avoid unnecessary tax burdens. – Such gifts may be added to an existing fund; to the undesignated fund managed by the Board, or may be used to establish a named fund. – Donors may wish, over time or through a one-time gift, to establish a fund in their name of $10,000 or more. This minimum amount is established so that the earnings generated by the fund are sufficient to provide meaningful support for the programs being named. Immanuel Lutheran Church Foundation –Some of the existing funds managed by the Foundation are: Immanuel Lutheran Church Endowment Fund Capital Improvement Fund Mission and Outreach Fund Special Ministry Projects Fund Music/Organ Fund Christian Education Fund Student Aid for Teachers Fund Student Aid for Pastors Fund Immanuel Lutheran School Fund Human Care and Relief Fund Cemetery Endowment Fund Media (Television, Radio, etc.) –For the creation of new funds, a Pastor or Foundation Board Member may be consulted to clarify needs and to prepare a letter of instruction for the Foundation’s Board Immanuel Lutheran Church Foundation • What is the Need? – Until Christ returns, we are to be about “making disciples of all nations, baptizing and teaching” and also to “Love one another as I have loved you.” Training pastors and teachers Helping those in need Reaching out to the community Doing mission work Providing for the beautification and expansion of the Church and School These are important needs we seek to fulfill until Christ returns. Immanuel Lutheran Church Foundation –The Foundation provides a real and lasting way to work toward accomplishing these objectives beyond what is done in the regular church budget. –The Foundation also provides a way to perpetuate the memory and the work of a Christian. The name of the giver, or of a loved one, can be linked for generations with the ongoing work of Christ. Immanuel Lutheran Church Foundation • How Can You Preserve Your Assets and Help Manage God’s Creation? – There are many ways you can make a gift to the Foundation. We cannot provide any legal or tax advice relating to any of these gift options; therefore, we request that you contact your legal representative or tax advisor with any specific questions that you may have. – The following gifting options are only a partial list of the many ways for you to make charitable gifts. Immanuel Lutheran Church Foundation • Outright Gifts: – Write a check or give cash to the Foundation and take an itemized tax deduction. You will need a receipt from the Foundation for gifts made by check of $250 or more. For cash donations, a receipt is required no matter what the amount. • Will or Trust Bequests: – Create a bequest to the Foundation by including a charitable gift provision in your will or trust document. Your estate could receive a charitable deduction for the value of the bequest. Immanuel Lutheran Church Foundation •Beneficiary Designation Gifts: –Name the Foundation as the beneficiary of your life insurance, annuity, trust or IRA. Your estate could receive a charitable deduction for the value of your assets transferred to the Foundation. •Life Insurance Gifts: –Purchase and gift a new contract to the Foundation, or gift an existing contract. The contract’s value and premiums might qualify you for an income tax deduction. Upon your death, the insurance proceeds go to the Foundation. Immanuel Lutheran Church Foundation •Investment Gifts: –Transfer your ownership of an investment (for example, land, a mutual fund, or stock) to the Foundation. If you itemize tax deductions, you could receive a deduction for the gift you’ve made. You may be able to reduce or eliminate capital gains and estate taxation through this type of gift as well. •Gift Annuity: –Transfer money or property to the Foundation in exchange for a fixed income for you and/or a survivor’s lifetime. Generally, you can receive an income tax deduction for the difference between the market value of the gift and the value of the retained annuity. Immanuel Lutheran Church Foundation •Traditional IRA Gifts: –Funds in a traditional IRA can be given to the Foundation through your IRA beneficiary designation. The IRA funds pass to the Foundation after death, escaping the income taxes due on the remaining funds. Your estate may receive an estate tax deduction as well. •Direct Transfers from an IRA: –In 2008 and 2009, individuals that are the age of 70 ½ and older may distribute up to $100,000 tax free annually from their IRA to a qualified charity (the Foundation qualifies) without including the distribution in gross income or taking an itemized deduction. To qualify, the distribution must be made directly from the IRA trustee to the Foundation. Immanuel Lutheran Church Foundation •Zero Estate Tax Gifts: –Your will or trust can be designed to pass along the maximum amount of estate assets to your children after death, estate tax free, through a family testamentary bequest. The remaining assets then are transferred to the Foundation through a bequest, also estate tax free. This plan may result in a zero estate tax due on your estate. Immanuel Lutheran Church Foundation •Charitable Remainder Trusts: –Give money or property to an irrevocable charitable remainder trust in exchange for an income during your life and/or the life of your survivor. After death, any remainder value in the trust passes to the Foundation. –You could defer, reduce or eliminate capital gains tax otherwise due on sale of the assets. You also may receive an immediate charitable income tax deduction on the remainder interest of the property that passes to the Foundation. Finally, the assets in the charitable remainder trust may escape some estate tax after your death as well. Immanuel Lutheran Church Foundation •Wealth Replacement: –Life insurance can be used to replace the value of the gift to the Foundation. You purchase life insurance on your life equal to the value of property you plan to gift. At death, the insurance proceeds pass to your heirs income tax free. If a family member or an irrevocable life insurance trust purchases the insurance, then the proceeds may be estate tax free as well. Immanuel Lutheran Church Foundation •Wealth Replacement Trust: •Also called an irrevocable life insurance trust (ILIT). This living trust is created outside the donor’s estate and is set up to own life insurance on the donor. The amount of life insurance the trust owns usually is less than or equal to the amount of property you plan to give to the Foundation. Upon your death, your heirs, who usually are the trust beneficiaries, can receive the insurance proceeds from the trust both income and estate tax free. Immanuel Lutheran Church Foundation • Ways to Designate How Your Gift is Used – You can instruct the Foundation on how the Gift you make is to be used. Your Gift can be set up using one of the following means: Unrestricted Bequest – The Foundation Board reviews requests and approves expenditures. Since we may not now know the most pressing needs in the next 15- 20 years, this provides flexibility. Restricted Bequest – Used for Foundation’s programs as you specify Endowed Bequest – Principle is not used, but income earned is used as you, or the Foundation, determine Memorials – Gifts in Memory of someone you designate (to be used as you specify or as determined by the Foundation) Immanuel Lutheran Church Foundation •Whom May I Contact If I Have Questions? –The Immanuel Lutheran Church Foundation of Seymour Indiana, Inc. is ready to serve you. If you have questions or would like additional information, please contact: Reverend Ralph Blomenberg or Beckie Anderson (812) 522-3118 The Immanuel Lutheran Church Foundation 605 S. Walnut Street Seymour, Indiana 47274 Visit our website: www.immanuelseymour.com Letters of instruction are available for your use to designate a gift to the Foundation fund of your choice.
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