In addition to direct gifts, you can support our mission with gifts returning a steady income stream to you or others. You can incorporate these gifts into your estate plan to provide blessings to your heirs. These gifts both help you and your family and help us sustain our Christian ministry for future generations.

Because you will be receiving income benefits in return for your gifts, your charitable deduction for gifts of cash or capital gain property will be limited to a portion of the value of the gift. The sooner the charities can make use of your donation, the larger the deduction.

TLHA offers a variety of gifts that give back to you. Each offers its own advantages.

Charitable Gift Annuity (CGA)

The advantage of a CGA is its simplicity. It is easy to understand and a snap to set up. It is an irrevocable contract between you and TLHA in which you give cash or securities to TLHA in exchange for fixed payments (an annuity) for the lives of the annuitants you chose, up to two people.

  • The annuity amount is a percentage of the value of your gift and is fixed on the date you make your donation. The older the beneficiaries on that date, the larger the fixed payments.
  • You can defer the start of your payments. The reward for your patience is a larger annuity payment when the distributions begin.
  • When the Lord calls the last of the annuitants home to him, the remaining value benefits the TLHA ministries you name in the agreement.
  • TLHA requires a minimum gift of $10,000 to fund a CGA.

Contact us to learn how a CGA can work for you!


Charitable Remainder Unitrust (CRUT)

Of the gifts that give back to you, a Charitable Remainder Unitrust provides amazing flexibility, allowing you to use a wide variety of asset types to maximize tax benefits. A CRUT can also be structured to reduce your distributions in the near term to create increased distributions for the future.

A CRUT is an irrevocable trust which you establish to benefit charities with a future gift. While the CRUT is active it provides a variable stream of income for you, the donors, and/or other beneficiaries.

Here is how a CRUT works:

  • Each year’s distributions are calculated using the distribution percentage you select when the trust is established and the trust value at the end of the previous year.
  • You determine if the trust is to provide lifetime benefits, benefits for a term of up to 20 years, or both. You can name any number of beneficiaries.
  • CRUTs allow you to add assets to the trust at any time.
  • You can fund a CRUT using a wide variety of asset types: cash, securities, farmland, investment property, a home, grain or livestock, depreciated equipment and is some instances, closely held shares. When highly taxed assets are transferred to the trust, they are sold without tax consequences. A lot more value remains to produce growth and income for the benefit of all beneficiaries.
  • Cash and capital gain assets create a prorated charitable deduction which is calculated on the full value of the gift. This can be used in the year the gift is given and in future years as allowed by IRS rules to reduce your taxable income.
  • When the trust ends, the remainder will richly bless your chosen charities.
  • Our Office of Mission Advancement will work with you and an attorney who has a specialty in CRUTs to custom design a document meeting all IRS and state requirements. As you direct us, we will work with your own legal and financial professionals to help you select the assets which provide you with the best tax benefits.
  • The Lutheran Home Association Foundation provides trustee services including tax document preparation and investment services. When we are named as the trustee of your CRUT, the TLHA Foundation allows donors to name both TLHA and non-TLHA ministries, subject to policy.
  • The minimum funding for a CRUT is typically $200,000.

Contact us to learn how a CRUT can provide for you and your family!


Charitable Remainder Annuity Trust (CRAT)

Of the gifts which give back to you, a Charitable Remainder Annuity Trust fills a niche for donors who want the fixed income of a CGA, but who need the flexibility to name more than two beneficiaries, want to more control of the term of the trust or wish to choose a higher rate of distribution.

A CRAT is an irrevocable trust which you establish to benefit charities with a future gift. For the duration of the trust, you or other beneficiaries receive a fixed dollar amount (an annuity) based on a percentage of the value of the one-time gift. The fixed distribution is what makes it an annuity trust (CRAT), not a unitrust (CRUT).

Here is how a CRAT works:

  • The annuity distribution is calculated when the CRAT is established, using the distribution rate you select and the value of the one-time gift you use to fund the CRAT. The distribution stays the same over the life of the trust. You cannot make additional gifts to a CRAT.
  • As with a CRUT, you determine if the trust is to provide lifetime benefits, benefits for a term of up to 20 years, or both. You can name any number of beneficiaries.
  • CRATs are typically funded with cash, securities or other assets which are easy to sell.
  • In all other respects, a CRAT works like a CRUT as described above.

Contact us to see if a CRAT works for you.


Charitable Retained Life Estate Agreement (RLE)

The “gift” provided by a Charitable Retained Life Estate (RLE) is the use of your property while you enjoy a tax deduction. An RLE allows donors who wish to give property when the Lord calls them home, the opportunity to receive a capital gains charitable deduction during their lifetime.

Here is how an RLE works:

  • You enter into an agreement to irrevocably transfer title of a personal residence, vacation home or cropland to The Lutheran Home Association. This agreement specifies you retain the right to use the property for a term of years or for your lifetime, or for the life of other beneficiaries. The term of use becomes the “measuring term” of the agreement.
  • As a donor, you receive the right to a partial capital gain charitable contribution deduction. You can use this over a period of years, subject to IRS limits. The shorter the “measuring term” the higher the deduction.
  • At the conclusion of the measuring term, all rights to the property are transferred to the TLHA and other non-TLHA charities the donor has chosen.

Learn more how a RLE could work for you.


The contents of this page should not be considered legal or financial advice. It is intended as a general discussion of concepts for possible plans and actions. The material presented does not address all issues, exceptions, or exclusions. Please consult with your own legal and financial professionals for advice.