Frequently Asked Questions

Lutheran Legacy Foundation (LLF) is a community foundation dedicated to serving the Lutheran community by helping individuals, churches, schools, and organizations establish and grow endowment funds. Our mission is to nurture Christian faith and values for future generations by partnering finance with purpose. We make it easier for Lutherans nationwide to create lasting financial support for the ministries they love, ensuring these organizations can thrive for decades to come.

LLF specializes exclusively in permanent endowment funds for the Lutheran community. Unlike general foundations, we focus on creating lasting legacies where the principal remains permanently invested while earnings provide ongoing support. We also offer unique matching grant programs to incentivize and accelerate endowment growth, helping ministries get started with immediate financial momentum. As a community foundation, we provide professional investment management, simplified administration, and personalized service—all without the complexity and costs of establishing a private foundation.

No, Lutheran Legacy Foundation is an independent community foundation that serves the entire Lutheran community. We welcome partnerships with Lutheran churches, schools, organizations, and individuals across all synods and affiliations. Our commitment is to the broader mission of nurturing the Lutheran faith for future generations, regardless of synodical boundaries.

Lutheran Legacy Foundation has deep roots in Lutheran stewardship. Our parent organization, The Clara and Spencer Werner Foundation, was founded in 1953 by Clara and Spencer Werner, faithful Lutherans and founders of Grace Lutheran Church in Paris, Illinois. In 2005, recognizing the need for greater flexibility and expanded services, the Werner Foundation established Lutheran Legacy Foundation as a community foundation. Since 1953, our combined efforts have awarded more than $45 million for Lutheran causes, and today we manage over $80 million in assets across more than 250 active funds.

Establishing an endowment with LLF is remarkably simple. Start by completing our easy application form, which takes just a few minutes. You’ll provide information about your goals and the fund purpose, beneficiary organizations, and initial investment. Our team will then connect with you personally to discuss the details and answer questions. Once your fund is established, LLF handles all investment management, compliance, and distributions. We offer several endowment types to match your goals: Designated Funds (supporting specific organizations), Field-of-Interest Funds (supporting broad causes like Lutheran education or missions), and Donor Advised Funds (allowing you ongoing grant recommendations).

Lutheran Legacy Foundation is headquartered in Paris, Illinois, the hometown of our founders Clara and Spencer Werner. However, we serve Lutheran ministries and donors throughout the United States. Our streamlined processes and digital capabilities make it easy to work with us regardless of your location.

A Donor Advised Fund is a charitable giving vehicle that allows you to make contributions, receive an immediate tax deduction, and then recommend grants to qualified charities over time. Think of it as your own charitable savings account. You contribute assets to the fund, LLF manages and invests them, and you maintain the privilege of recommending which Lutheran and other IRS-qualified charitable organizations receive grants from your fund. It’s a flexible, efficient way to organize your charitable giving while building a lasting legacy.

When you establish a DAF with LLF, you make an initial contribution and name the fund (often after your family). Your contribution is immediately tax-deductible. LLF invests your fund alongside other endowments for professional growth, and you can make additional contributions at any time. Whenever you wish to support a Lutheran church, school, mission, or other qualified charity, you simply recommend a grant to LLF, and we handle all the administrative details. Your fund continues to grow over time, allowing you to make an even greater impact in the years ahead.

The minimum initial investment to establish a Donor Advised Fund with LLF is $5,000. There are no complex legal requirements—LLF handles all IRS compliance and reporting. You’ll simply complete a straightforward application, and we’ll guide you through the process.

One of the wonderful features of a DAF is the ability to involve your family in charitable giving. You can name children, grandchildren, or other family members as successor advisors who will have the privilege of recommending grants after your lifetime. This creates a powerful legacy of generosity across generations. You can also structure your fund to permanently support a specific church, school, or ministry, ensuring your charitable priorities continue long into the future.

LLF accepts a wide variety of assets for your Donor Advised Fund, including:

• Cash and checks
• Publicly traded stocks and securities
• Mutual funds
• Bonds
• Real estate (subject to the approval of the gift acceptance committee of Lutheran Legacy Foundation)
• Closely held business interests (subject to the approval of the gift acceptance committee of Lutheran Legacy Foundation)
• Other appreciated assets

Contributing appreciated assets like stocks can be especially tax-efficient, as you avoid capital gains taxes while receiving a charitable deduction for the full fair market value. Contact us to discuss the best way to contribute your specific assets.

Recommending grants from your DAF is simple and straightforward. You can contact LLF by phone or email with your grant recommendations. You’ll provide the name of the charitable organization, the grant amount, and any special instructions (such as designating the gift for a specific purpose). LLF reviews all recommendations to ensure they comply with IRS regulations for charitable giving, processes the grant, and provides both you and the recipient organization with appropriate documentation. We handle all the paperwork so you can focus on the joy of giving.

Yes! Contributions to your Donor Advised Fund are fully tax-deductible in the year you make them, subject to IRS limits. Generally, you can deduct cash contributions up to 60% of your adjusted gross income and appreciated securities up to 30% of AGI. Because LLF is a public charity, you receive the maximum charitable deduction available. Even though you maintain advisory privileges over how grants are distributed, the contribution is considered a completed charitable gift, making it immediately deductible. We recommend consulting with your tax advisor to understand how a DAF fits into your specific tax planning strategy.

An endowment fund is a permanent fund where the principal remains invested indefinitely while the investment earnings provide ongoing financial support. Think of it as a perpetual well of support—you build it once, and it keeps giving year after year. With LLF, your endowment is professionally invested for growth, and you can choose to receive annual distributions of up to 5% to support your ministry or charitable interests. The remaining earnings are reinvested to help the endowment grow over time, ensuring support for future generations.

Absolutely! In fact, this is one of our core services. Many Lutheran churches and schools partner with LLF to establish and manage their endowments. We handle all the complex investment management, regulatory compliance, and administrative work, freeing your organization to focus on ministry. Based on the purpose of the fund, your congregation or school maintains control over how distributions are used, and we provide regular financial reporting so you can track your endowment’s growth. Plus, with our Matching Grant Programs, we can help jumpstart your endowment with substantial bonus funds to maximize your initial investment.

LLF can facilitate many types of planned gifts to support your charitable legacy:

• Bequests: Include LLF or a specific ministry fund in your will or trust
• Beneficiary designations: Name LLF or a specific fund, as a beneficiary of retirement accounts, life insurance, or other assets
• Charitable Remainder Trusts: Beneficiaries receive income during a defined period, with the remainder supporting your chosen ministries
• Gifts of appreciated assets: Donate stocks, real estate, or business interests
• Life insurance gifts: Transfer ownership of a policy or name LLF as beneficiary

Each option offers unique tax benefits and opportunities to create lasting impact. We’re happy to discuss which approach aligns best with your financial situation and charitable goals.

Yes, and we encourage it! Including LLF in your will or estate plan is one of the most meaningful ways to create a lasting legacy for Lutheran ministries. You can structure your bequest in several ways:

• Leave a specific dollar amount or percentage of your estate
• Designate specific assets or property
• Make LLF a contingent beneficiary if other provisions aren’t needed
• Create a new endowment fund through your estate
• Add to an existing fund you’ve already established

The language is simple, and we provide sample bequest language for your attorney. Because circumstances change, estate gifts offer flexibility—you can modify your plans at any time, and you retain full use of your assets during your lifetime.

While both are endowment funds managed by LLF, they serve different purposes. A Designated Endowment Fund supports specific organizations you name at the time of establishment—for example, your church, a Lutheran school, or a mission organization. Distributions go automatically to these beneficiaries according to your instructions.

A Donor Advised Fund gives you ongoing flexibility. You can recommend different grant recipients each year, support multiple organizations, and adjust your charitable priorities over time. You or your designated successors maintain advisory privileges for as long as the fund exists.

Many donors appreciate having both: a designated fund that automatically supports their core charitable commitments, and a donor advised fund that allows them to respond to new needs and opportunities as they arise.

Partnering with LLF is straightforward and rewarding. Begin by completing our organization application, sharing information about your ministry, your endowment goals, and your initial fundraising plans. Our team will schedule a conversation to understand your unique needs and explain how LLF can support your vision. We’ll walk you through our Matching Grant Programs, which can provide substantial bonus funds to accelerate your endowment’s growth. Once established, we become your trusted partner in managing investments, handling compliance, and ensuring your endowment serves your ministry faithfully for generations.

LLF brings professional expertise and proven systems to endowment management, offering benefits that most individual ministries cannot achieve on their own:

• Professional investment management: Your funds are managed by experienced professionals using diversified, institutional-quality investment strategies.
• Generous matching grants: Startup grants, accelerator grants, and milestone matches multiply your fundraising impact.
• Simplified administration: We handle all IRS compliance, financial reporting, and regulatory requirements.
• Cost efficiency: Our annual management fee is lower than many alternatives. It is all-inclusive and does not have hidden fees such as for check-writing or compliance, and there are no setup costs.
• Stability and permanence: As an established foundation, we provide long-term security for your endowment.
• Quarterly reporting: Regular financial statements keep you informed of your fund’s performance.
• Personalized service: You’ll work with a team that understands Lutheran ministry and values.

You can choose to receive up to 5% of your fund’s value each year, calculated to balance current support with long-term growth. Some organizations prefer quarterly distributions to match their budgeting cycles, while others opt for a single annual distribution. The distribution percentage is optional—you might choose to take less during strong fundraising years, allowing your endowment to grow faster, or skip distributions entirely in the early years to build a stronger foundation.

Yes! Many ministries transfer existing endowments to LLF to benefit from professional management, reduced administrative burden, and potential matching grants. If your organization currently manages its own endowment—or has funds held at a bank or with another institution—we can work with you to transition those assets to LLF. The process is typically smooth and straightforward. We’ll assist to coordinate all the details, ensure proper documentation, and maintain any existing donor restrictions or designations. Transferring to LLF often results in access to professional fund management, lower costs, and more time for your staff and volunteers to focus on ministry rather than financial management.

Transparency and clear communication are priorities at LLF. Your organization will have access to monthly fund statements as well as receive quarterly financial reports showing your endowment’s balance, investment performance, contributions received, and any distributions made. These reports are easy to understand and provide everything you need for your own financial reporting and board meetings. Additionally, we send periodic updates about LLF activities, investment market conditions, and strategies for growing your endowment. You’ll also have direct access to our team whenever you have questions or need additional information.

LLF charges an annual management fee of 1.25% (1% if the fund is over $1MM) of your fund’s balance, assessed monthly (1/12th). This fee covers all investment management, administrative services, compliance, reporting, and ongoing support. There are no setup fees, no transaction fees for contributions or distributions, and no hidden costs. Compared to the costs of establishing and maintaining a private foundation or managing investments independently, LLF’s fee structure is remarkably efficient. Moreover, our Matching Grant Programs often provide many times more value than the management fee, especially in your endowment’s early years.

LLF invests endowment funds using a professionally managed, diversified portfolio strategy designed to balance growth with stability. We work with Alpha Investment Consulting Group, LLC, experienced investment advisors who research and screen thousands of investment options. The portfolio uses a strategic mix of index funds (passive investments) and actively managed mutual funds, diversified across multiple asset classes including domestic and international equities, fixed income securities, and alternative investments. This diversification helps manage risk while pursuing long-term growth.

Fifth Third Bank custodians all LLF funds through their Institutional Trust and Custody Services.

Yes. As a foundation dedicated to serving the Lutheran community, LLF takes seriously its responsibility to invest in ways that honor Christian values. Our Investment Committee works with our professional advisors to ensure investments align with the mission of supporting Lutheran ministries and nurturing faith for future generations. The Committee recognizes that there are tangible benefits to environmental stewardship, positive corporate action, and Lutheran Christian values. The Committee further recognizes that it is difficult to dictate specific instruction to a mutual fund and our guide to align with these values is just that a guide. Our goal is responsible stewardship that both grows your endowment and reflects the principles of faith that guide our community.

LLF’s investments are overseen by our Board of Directors and Investment Committee, composed of experienced professionals with expertise in finance, investment management, and Lutheran ministry. The committee works closely with Alpha Investment Consulting Group, LLC, our professional investment advisors, to set strategy, monitor performance, and make adjustments as needed. The Board encourages a well-rounded approach to investments, considering short-term stability, long-term growth, and appropriate diversification. This multi-layered oversight ensures your endowment receives expert attention and prudent management.

Responsible stewardship is at the heart of everything we do. LLF follows rigorous practices to protect and grow donor assets:

• Professional investment management: We partner with qualified investment advisors who use proven, institutional-quality strategies
• Regular monitoring: Investment performance is reviewed regularly, and we take action when adjustments are needed
• Diversification: Assets are spread across multiple investment types to manage risk
• Transparent reporting: Monthly and Quarterly statements keep donors and ministries fully informed
• Strong governance: Our Board of Directors includes experienced leaders committed to faithful stewardship
• Compliance and accountability: We maintain all necessary regulatory compliance and undergo annual independent audits

We treat every dollar entrusted to us as a sacred responsibility, managing funds with the care and integrity donors deserve.

Investment returns vary based on market conditions, but LLF’s diversified portfolio strategy is designed to achieve competitive long-term growth while managing risk. Historically, balanced endowment portfolios have averaged annual returns in the range of 6-8% over extended periods, though any single year may be higher or lower depending on market performance. Our goal is to generate returns that allow for annual distributions (typically up to 5%) while preserving and growing the endowment’s principal over time. We provide transparent performance reporting so you can track your fund’s progress. For the most current performance information, please contact us directly or review the quarterly reports sent to all fund holders.

The LLF Matching Grant Program is our way of partnering with Lutheran ministries to jumpstart and accelerate endowment growth. When you establish a new endowment with LLF and raise funds from your community, we match a portion of your gifts with bonus grants. This means your fundraising efforts are immediately multiplied, giving your endowment a significant boost right from the start. These matching grants are designed to incentivize endowment building and help ministries achieve financial stability faster than they could on their own.

Clara and Spencer Werner established their foundation with the focus on supporting Lutheran churches, schools, and organizations. Today, the Clara & Spencer Werner Fund (now under the direction of the Lutheran Legacy Foundation) provides the funding to award matching grants to create and grow endowments.

Matching grants are available to both Lutheran organizations and individuals establishing new endowment funds with LLF:

For Organizations (churches, schools, ministries):

• Lutheran churches, schools, and nonprofit organizations
• Those establishing a new endowment fund with LLF
• Ministries willing to conduct fundraising within their community
• Organizations committed to using matching funds to build permanent endowments

For Individuals:

• Anyone establishing a new Designated Fund with LLF
• Individuals making initial investments of $5,000 or more
• Those committed to building permanent endowments for Lutheran causes

If you’re unsure whether your organization or situation qualifies, we encourage you to contact us. We’re happy to discuss your goals and explore whether matching grants can help you achieve them.

For Organizations:

1. Startup Grant: When you raise at least $10,000 from your community, LLF provides a 50% match on the first $10,000 (up to $5,000 matching grant)
2. Accelerator Grant: In addition to the Startup Grant, LLF provides a 20% match up to $500,000 in contributions, or 10 years, whichever comes first.
3. Milestone Match: For organizations establishing endowments of $1 million or more, LLF provides a special $175,000 match paid over three years

For Individuals:

1. Startup Grant: Make an initial gift of $20,000 or more and receive a $5,000 bonus match, OR
2. Accelerator Grant: For each additional $5,000 gift (up to five times), receive a $1,000 bonus—up to $5,000 in total accelerator matches

All matching funds are added to your endowment principal and are subject to the same withdrawal policies as your contributions—they’re meant to build lasting support, not immediate spending.

The specific timeframes for matching grants can vary depending on the program and your fund type. Generally, Startup Grants are processed when you establish your endowment and complete your initial fundraising. Accelerator Grants are matched as you raise additional funds according to program guidelines. Milestone Matches for large endowments are paid out over a three-year schedule to support sustained growth.

We recommend discussing specific timelines with our team when you apply. We work closely with each ministry and donor to ensure you have adequate time to conduct fundraising and maximize your matching grant opportunities.

The matching grant structure is designed to support your endowment through multiple growth phases.

• For organizations, you begin with a Startup Grant, then qualify for Accelerator Grants as you raise additional funds (up to $500,000 in contributions or 10 years). An organization can have one fund designated for the Accelerator match.
• Individuals are allowed a match on one designated fund.

Each grant type supports different stages of endowment development, encouraging long-term, sustained growth rather than just a single initial push. This tiered approach helps ministries build momentum and achieve increasingly ambitious fundraising goals.

To qualify for matching, gifts must be contributed to your endowment fund at LLF and intended for permanent investment. Qualifying gifts include:

• Cash donations from individuals, families, or businesses
• Appreciated securities and stocks
• Memorial and honorary gifts
• Planned gifts that are realized (such as bequests that have been received)
• Transfers from existing funds or savings external to Lutheran Legacy Foundation

Gifts must come from you, your donors, or the community. The goal is to engage your congregation, alumni, or supporters in building a lasting endowment. In-kind donations and pledges typically do not qualify until they are converted to cash or securities and contributed to your fund.

Applying for a matching grant begins with completing our organization or individual endowment application. The application is simple and takes just a few minutes. You’ll share basic information about your ministry or giving goals, your initial investment amount, and your fundraising plans. Once submitted, our team will contact you to discuss matching grant opportunities, confirm your eligibility, and walk you through next steps. We make the process as straightforward as possible so you can focus on engaging your community and building support for your endowment.

Yes! Lutheran churches, schools, and organizations across the country have successfully created funds and leveraged LLF’s Matching Grant Program to establish thriving endowments. Grace Lutheran Church in Paris, Illinois—the church founded by Clara and Spencer Werner—has multiple endowment funds that support everything from landscaping maintenance to general ministry needs. Lutheran schools have used matching grants to secure their educational futures, ensuring they can continue providing Christ-centered education for generations. Mission organizations have built endowments that provide reliable annual funding for their work. While each ministry’s story is unique, they all share a common thread: they engaged their communities, took advantage of matching grants, and built lasting financial foundations that will serve their missions long into the future. Contact us to learn more about specific success stories and how your ministry can achieve similar results.

Starting your charitable legacy with LLF is easier than you might think. The process takes just three simple steps:

1. Complete an Easy Application: Visit our website or contact us directly to access our straightforward application form. It takes just a few minutes to provide basic information about your goals, initial investment, and how you’d like your fund structured.
2. Connect with Our Team: Once we receive your application, we’ll reach out personally to discuss your vision, answer questions, and ensure we understand your charitable priorities. This conversation helps us tailor your fund to meet your specific needs.
3. Fund and Launch: You’ll make your initial contribution, and we’ll formally establish your endowment or donor-advised fund. From there, we handle all the investment management, compliance, and administration while you enjoy the privilege of supporting causes you care about.

You can begin the process today by visiting our Getting Started page at luthernlegacyfoundation.org/getting-started or calling our office directly.

The information requirements are minimal, designed to make the process simple:

For Individual Funds:

• Your name and contact information
• Type of fund you’d like (Donor Advised, Designated, Field-of-Interest)
• Initial contribution amount
• If Donor Advised: Your charitable interests and any successor advisors
• If Designated: The specific ministries you wish to support
• If Field-of-Interest: The broad area of ministry you want to support (e.g., Lutheran education, missions, social services)

For Organization Funds:

• Organization name and contact information
• Tax ID number (EIN)
• Information about your ministry’s mission and programs
• Initial fundraising plans
• How you’d like endowment distributions to be used

You don’t need complex legal documents or extensive financial records. We keep the process straightforward so you can focus on your charitable vision rather than paperwork.

Absolutely! We welcome the opportunity to meet with you—whether in person, by phone, or via video call. Personal conversations help us understand your unique situation, charitable passions, and financial goals so we can recommend the best approach for your circumstances. These consultations are complimentary and come with no obligation. We’ll discuss different fund types, tax benefits, matching grant opportunities, and how to structure your giving for maximum impact. Many donors find these conversations invaluable for clarifying their philanthropic vision and discovering possibilities they hadn’t previously considered. To schedule a meeting, simply contact us through our website or call our office directly.

Once your fund is established, you’ll experience the ease and joy of organized, impactful giving:

Immediate Steps:

• You’ll receive confirmation documentation for your records
• Your initial contribution will be invested according to LLF’s professional investment strategy
• If you qualify for matching grants, we’ll process those bonus funds
• You’ll receive a tax receipt for your charitable contribution

Ongoing:

• Your fund will be professionally invested and managed for growth
• You’ll receive quarterly financial statements tracking your fund’s performance
• For Donor Advised Funds: You can recommend grants anytime to support Lutheran and other qualified charities
• For Organization Endowments: Distributions will be made according to your chosen schedule
• You can make additional contributions at any time to further grow your endowment
• Our team remains available to answer questions, discuss strategies, and support your charitable journey

Think of LLF as your partner in generosity—we handle the details so you can focus on the joy of making a difference.

We’re here to help and would love to hear from you! You can reach Lutheran Legacy Foundation in several ways:

Email Us: Info@LutheranLegacyFoundation.org

Call Our Office: 217-463-8202

Mail: 513 South Main Street
P.O. Box 31
Paris, IL 61944

Whether you’re an individual exploring ways to leave a charitable legacy, a congregation considering an endowment, a school seeking financial stability, or a professional advisor helping clients with planned giving, we welcome your questions. No question is too small, and no charitable vision is too ambitious. Contact us today to discover how Lutheran Legacy Foundation can help you nurture faith and support ministries for generations to come.