Using a Blended Gift to Reach Your Charitable Giving Goals

• Jay: "We wanted to make a big commitment to help fund a special project with Luther College, but we weren't able to make the full gift this year."

Jay and Amy contacted our organization to discuss their desire to help but also to explain their funding limitation. We explained that by using a combination of their available resources and planned gifts, they could still achieve their objectives. We suggested the following options for Jay and Amy to consider.

• A $25,000 cash gift today combined with a separate $37,500 bequest in both Jay and Amy's wills (no cash out-of-pocket).
• A $25,000 gift of appreciated stock (no cash out-of-pocket and significant tax savings) and a $75,000 bequest in the will of either Jay or Amy, depending on which spouse outlives the other.
• A $25,000 gift of appreciated stock, a $50,000 charitable gift annuity funded with stock (numerous tax advantages and fixed payments for life) and a $25,000 bequest.

After careful consideration, Jay and Amy decided to make a gift of cash and to include a bequest in each of their wills.

• Amy: "We decided to make a gift of cash and to each make a bequest. By making a $25,000 cash gift and satisfying the remaining balance with a bequest in each of our wills, we are able to achieve all of our goals."

Using a combined giving strategy, Jay and Amy will be able to make a $100,000 gift to Luther College. They loved the fact that they could make a gift during life that provided a tax deduction, and that they had the ability to see their gift at work today while also committing to support our mission in the future.

What is a Blended Gift?

A blended gift is a combination current and future gift made to support the work of Luther College.

Blended Gifts video

Popular Blended Gifts

1. Gift and Bequest

A "Gift and Bequest" is a combination of a current gift and a charitable gift made in your will or trust. It is an easy way to support our cause today and make a lasting future impact on Luther College.

Benefits:

• Receive a charitable income tax deduction for your gift made to us this year
• Continue to use and control your assets during your lifetime
• Leave a lasting legacy through a bequest to support our mission after you are gone

How it works:

• You can make a gift to support Luther's mission this year by contacting us or visiting our website. A charitable bequest is a way to make your giving go further. With the help of an attorney, you can include language in your will or trust specifying a gift to be made to Luther College as part of your estate plan, or you can make a bequest by designating the college as a beneficiary of your retirement account or life insurance policy.

2. Endowment Gift and Bequest

Endowment giving is vital to continuing the important work of Luther College. An "Endowment Gift and Bequest" is a combination of a current gift made to support our endowment and a charitable gift made in your will or trust. It is an easy way to support our work today and continue your commitment to Luther College through a legacy gift.

Benefits:

• Receive a charitable income tax deduction for your endowment gift this year
• See firsthand how your gift makes a difference
• Continue your commitment to Luther's mission by leaving a bequest to endow your giving

How it works:

• You can make a gift to support our endowment this year by contacting us or visiting our website. A charitable bequest is an easy way to continue your commitment to us after you are gone. With the help of an attorney, you can include language in your will or trust specifying a gift to be made to Luther College as part of your estate plan, or you can make a bequest by designating us as a beneficiary of your retirement account or life insurance policy.

3. IRA Rollover Gift and Bequest

A powerful way you can support Luther College is to make a series of IRA rollover gifts today and leave a future bequest. Your bequest will extend the impact of your lifetime gifts far into the future. An "IRA Rollover and Bequest" enables you to achieve your philanthropic goals. You can start your annual giving plan today and your bequest fulfills your legacy for tomorrow.

Benefits:

• If over age 70½, you can roll over up to $111,000 from your IRA to charity
• You are not taxed on the IRA charitable rollover
• If over age 73, IRA rollover may fulfill your required minimum distribution

How it works:

• You may start the IRA rollover gifts plan during your lifetime with gifts each year. You may continue with similar IRA rollover gifts in future years. Finally, make your giving go further and create a lasting legacy by adding a charitable bequest to your IRA rollover gifts. A bequest is an easy way to leave a gift to us as part of your estate plan.

4. Gift and gift annuity

An attractive way you can support Luther and receive lifetime payments is to make a gift today and fund a gift annuity. A "Gift and Gift Annuity" enables you to achieve your goals. You can continue generous support for the college and receive fixed payments for your future lifestyle needs. You may begin a giving plan today, receive generous fixed payments and create a lasting legacy for tomorrow.

Benefits:

• A helpful benefit of this gift is that you receive an income tax deduction
• A gift annuity provides fixed payouts for one or two lives
• With a gift annuity funded with cash, a substantial amount of each payout is tax free

How it works:

• You can make your giving go further and create a lasting legacy by adding a charitable gift annuity to your current gift. A gift annuity provides fixed payments for life and may offer valuable tax benefits. After all payments have been made, the remaining value of your gift will help advance the mission of Luther College.

Is a blended gift right for you?

If you have ever thought, "I would like to make a gift to Luther College but am apprehensive about my future," a blended gift might be right for you. There are many different ways to structure blended gifts. Contact us to see how you might be able to use a blended gift strategy to achieve your goals while supporting Luther's mission.

Please note: The information above is representative of a typical donor and may or may not be an actual donor to Luther College. Since your benefits may be different, you may want to create a printable illustration of your income and tax benefits with our calculators.