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Give the Fruit and Keep the Tree

Make a gift that uses the income from your asset to help a ministry of your choice, while you remain owner of the asset itself. Please contact us if you desire further assistance or explanation of these options by filling out our contact us form or calling 1-800-843-5233 any time between 7:45 a.m. - 4:15 p.m., CT, Monday through Friday.

Four Options For Giving the Fruit and Keeping the Tree

  1. Non-Grantor Charitable Lead Trust (NGCLT)

    • This type of gift is suitable for individuals who have significant wealth and wish to leverage their charitable intent against estate/gift tax liability. Ministry would be funded first before loved ones would receive their inheritance.
    • A donor may wish to create a Non-Grantor Charitable Lead Trust (NGCLT) during his/her life that is funded with cash or securities.
    • The income from the NGCLT will be distributed to the ministry of the donor’s choice.
    • The trust term may be for life or a period of up to 20 years.
    • After the term of the trust concludes, the principal is then distributed to family.
    • An estate/gift tax deduction is immediately realized for the present value of the income stream to ministry.

  2. Testamentary Lead Trust

    • This type of gift is suitable for a person of significant wealth who wishes to leverage his/her charitable intent against estate/gift taxes by funding ministry before giving to his/her loved ones.
    • Similar to the Charitable Lead Trust (CLT), a Testamentary Lead Trust can be set up to receive a designated portion of one’s estate at death.
    • The Testamentary Lead Trust would provide for a stream of income to a ministry for a term of up to 20 years.
    • After the designated term concludes, the principal is distributed to family.
    • An estate tax deduction is immediately received for the value of the income stream to ministry.

  1. Grantor Charitable Lead Trust (GCLT)

    • This type of gift is suitable for those who wish a ministry to have use of the income-producing capability of their asset with the guarantee that the asset returns back to the donor.
    • A donor may wish to create a Grantor Charitable Lead Trust (GCLT) during his/her life that is usually funded with cash. Securities may be used also.
    • The income from the GCLT will be distributed to the ministry of the donor’s choice.
    • The trust term is usually for a period of 3-10 years.
    • After the trust term concludes, the principal is then returned back to the donor.
    • An immediate income tax deduction is received for the stream of income to ministry.
    • Should the donor pass away before the trust term concludes, there may be recapture of the income tax deduction.
    • Income from the trust is included in the donor’s annual income. Thus, it would be prudent to have the trust principal placed in tax-free investments such as municipal bonds or funds.

  2. Interest Off LCEF Investment

    • This type of gift is suitable for those investors who do not need the income off of their investments but would rather have that income support ministry.
    • LCEF investors may designate a portion, or all, of their investment income to be distributed to ministry. (There is a “wash-out” of the tax liability on the investment income as the charitable deduction brings this situation to “zero.”)
Gift Planning Services Forms
Gift Planning Services Brochures

Gift Annuity Agreement Application

Additional Forms

Gift Annuity Brochure

Additional Brochures
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Have a question?
Fill out our Contact Us Form, or call the Lutheran Church Extension Fund at 1-800-843-5233, 7:45 a.m. - 4:15 p.m., CT, Monday through Friday.
Page last updated May 17, 2008