What is a donor advised fund?

A donor advised fund is a charitable giving vehicle wherein an individual, family, or corporation makes an irrevocable, tax-deductible contribution of cash, securities, or other property to the WELS Foundation and at any time thereafter can recommend grant distributions to qualified WELS ministries (such as GPLHS and your local congregation). The fund can be established with current gifts, deferred gifts (such as charitable gift annuities and charitable remainder trusts), and testamentary gifts (such as wills, revocable trusts, or beneficiary designations for life insurance policies or retirement accounts).

 

The donor advised fund program through WELS provides an alternative to the private family foundation. You can accomplish many of the same goals, but with far less administrative work and expense.

 

What are the features?

• Gift size. The minimum initial gift is $10,000. Donors can add funds in $100 increments at any time.

• Individual. You may name your donor advised fund. You, or the persons you designate, may recommend distributions to qualified WELS ministries from your fund – anonymously if you so choose.

• Grant recommendations. The minimum amount that may be recommended is $250. Each fund must distribute at least five percent of its asset value annually.

• Lasting legacy. You may designate others to continue recommending distributions after your lifetime (usually for a period of 20 years) to support GPLHS, your local congregation or other favorite WELS ministries.

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What are the benefits?

• Joy. Arrange to benefit the areas of the Lord’s work that are closest to your heart.

• Tax savings. You receive an income tax charitable deduction in the year of your gift to your donor advised fund, regardless of when grants are made. As with all gifts of long-term appreciated securities, none of the appreciation is subject to capital gains tax.

• Recommend gifts when ready. Contribute to your donor advised fund this year, and decide later which WELS ministries you want to support.

• Encourage family stewardship. Help your children and other loved ones experience the joy of giving by involving them in the decision making process for the grant recommendations.