St. Paul's Lutheran Church Endowment Fund:
The Endowment Fund of St. Paul's Evangelical Lutheran Church was created so that members could donate or will their estates, life insurance, stocks, bonds, certificates of deposits or other assets to a fund with an endowment philosophy. The Endowment Fund Committee at St. Paul's follows that philosophy, one in which the principal of all assets donated will not be spent and only the interest that is earned on these assets can be spent. As a result, the Endowment Fund is a permanent fund that can provide supplemental income and will continue indefinitely.
Have you listed St. Paul's Evangelical Lutheran Church in your will? This is an example of a way to donate to the Endowment Fund at St. Paul's that does not effect your immediate income. Also, by donating stock dividends or interest income by listing St. Paul's Endowment Fund as a recipient of an IRA, an individual or family can use this to help reduce their tax liability. Here is a video to help the members get a better understanding.
If you would like more information or help in developing a plan, please contact one of the following committee members or click here for the WELS Endowment Fund information.
*Lowell Hoffman, Chairman
*Ron Goss, Treasurer
*Allen Erickson, Secretary
*Paul Andre
*Dan Hennen
Endowment Fund - the definition:
Trust fund whose income, but not the principal sum, can be expended.
A financial endowment is a transfer of money or property donated to an institution, usually with the stipulation that it be invested, and the principal remain intact in perpetuity. This allows for the donation to have a much greater impact over a longer period of time than if it were spent all at once.
The total value of an institution's investments is referred to as the institution's endowment.
Some things to keep in mind for your
Federal Tax Return:
Most charitable gifts are made by cash or check. For those who
itemized, gifts of cash may be deducted for income tax purposes up to
50% of the donor's adjusted gross income.
If in any year cash gifts exceed the level of 50%, the balance may be carried forward on federal tax returns for the next five years.
Because of the charitable deduction, a cash gift does not really "cost" a donor the full amount given.
Federal tax laws allow donors to reduce their income taxes through gifts of appreciated property such as securities and real estate.
You can choose the deduction option that is best for you.
You may list your gift at full value, then deduct under an annual deduction ceiling of 30% of adjusted gross income. Or you may list your gift at cost basis, then deduct under a 50% of adjusted gross annual ceiling.
Carryover deduction privileges are allowed under either option chosen.
Deducting full market value lets you deduct your cost basis plus all your capital gain in the asset. If appreciation is minimal or you expect your future income to drop, the deduction at cost basis but under the 50% annual ceiling can be preferable.
Your WELS gift planning counselor can offer guidance with your plans for giving. He's there for you as your Christian friend -- helping you with confidence and confidentiality.
Our church contacts are:
Current–South - 612-599-9316Rev Steve Staude, Current–North - 612-616-0586
Mr Carl Leibner, Deferred - 352-638-7221
, Deferred - 612-280-4491WELS does not offer legal, tax or investment advice. Everyone should consult with his or her professional advisor whenever considering a gift.
Example of a charitable gift...
Mr. Green hold shares in XYZ stock currently valued at $50,000 which he purchased for $20,000 ten years ago. If he sells the stock, he must report the $30,000 capital gain as taxable income.
Instead, he gives the stock to St. Paul's Lutheran Church with instructions to sell it and divide the proceeds between the Building Fund and the Current Fund. He may now deduct the entire present value of $50,000 as a charitable gift on his federal tax return, even though he actually paid only $20,000 for the stock. Furthermore, he pays no capital gains tax.
Example of giving to the endowment fund...
Mr. Brown wills $100,000 to St. Paul's Lutheran Church with instructions to place it in the Endowment Fund. The entire $100,000 will be deposited into the account and the entire principle ($100,000) can never be touched. If the interest rate is 4%, each year the account will earn $4,000 annually. At the end of each year the interest earned will be given back to the Church Council with a recommendation by the Endowment Fund Committee on where it should be used in the following calendar year.
Each year this interest amount will be an extra windfall for the church council that it hadn't budgeted for. If this principal amount grows to $1,000,000 the interest each year would be substantial ($40,000). The best part of the Endowment Fund is there is no "end date" or "expiration date"...it continues on forever as a gift that keeps on giving.