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Your mission gifts help us translate and publish Lutheran books and materials for Christians worldwide.
Donate Now | Thrivent GivingPlus® form
Your mission gifts help us translate and publish Lutheran books and materials for Christians worldwide.
Donate Now | Thrivent GivingPlus® form
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 Over the past few years, financial planning has been a challenge, to say the least. But in this rocky economy, there still are ways to provide economic stability for yourself and benefits for mission organizations like the Lutheran Heritage Foundation.
One excellent option is setting up a gift annuity.
A gift annuity is an irrevocable agreement that provides regular payments for the remainder of your life. The annuity can also be set up so that a second person, such as a spouse, receives these payments.
Then, at your death (or the death of the second recipient), the Lutheran Heritage Foundation receives the remaining assets of the annuity.
A gift annuity may be established with LHF for as little as $5,000.
Let’s say* that Fred, age 80, and his wife, Sue, 75, want a gift annuity to provide them with regular payments and a way to support the LHF mission after the Lord calls them home. They establish a gift annuity by sending a check for $5,000 to the LCMS Foundation, which administers annuities on behalf of LHF.
Based on their ages, Fred and Sue know they will receive a gift annuity rate of 5.9 percent (calculated using July 2010 rates). That means they will receive annual annuity payments of $295 for their lifetimes. Since a portion of the gift annuity is a charitable contribution, the couple also gets an additional $1984 income tax deduction for the year they established the gift. Plus, by current rates, $204 of their $295 annual payment is tax-free.
After Fred’s death, Sue will continue to receive her regular payments. After her death, the remaining balance on the couple’s gift annuity will go to the Lutheran Heritage Foundation.
In general, annuity payments and the amount that eventually goes to the designated ministry are based on life expectancy. If the Lord calls Fred and Sue home at the age of their life expectancies, about half of the couple’s original $5,000 goes to LHF. If they die before their life expectancy age, LHF receives a larger amount. If they live beyond their life expectancy, the mission receives less.
For more information about annuities, call the LCMS Foundation office at (800)325-7912 and indicate that you want to establish an annuity to benefit the Lutheran Heritage Foundation.
* For illustration purposes only. For more information about annuities, please contact the LCMS Foundation office. To see July 2010 rates for single person annuities, click here. To see July 2010 rates for two-person gift annuities, click here.
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