Imagine telling your congregation that for every $2 they give toward a new endowment fund, Lutheran Legacy Foundation will add $1 more. Suddenly, a $20,000 $10,000 campaign becomes $30,000 $15,000. That’s not fundraising magic—it’s the transformative power of matching grants.
A $20,000 campaign would result in $27,000 based on our matching grants.
What Are Matching Grants?
At Lutheran Legacy Foundation, we’ve seen firsthand how matching grants not only help ministries start stronger but also inspire greater generosity from donors who want to maximize their impact. This is why we offer the following matching grants for qualifying churches and ministries at different stages of endowment development.
Startup Grants:
Help new endowment funds launch with momentum by matching 50% of the first $10,000 raised.
Accelerator Grants:
Reward growing endowments by matching 20% of additional fundraising efforts up to $500,000 in contributions, helping established funds reach new milestones faster.
Milestone Gift Match:
For transformational contributions of $1 million or more, LLF provides a special match totaling $175,000, paid out over three years.
These grants aren’t loans—they’re genuine investments in your ministry’s future that never need to be repaid.
Why Matching Grants Work
The psychology of matching grants is powerful. When donors know their gift will be boosted, three things happen:
- Urgency increases. Matching grants create deadlines and goals, which motivates donors to act rather than postpone their giving.
- Impact feels magnified. A $1,000 gift that becomes $1,500 through the startup match feels more significant. Donors see their generosity multiplied in real time.
- Confidence builds. When donors see that Lutheran Legacy Foundation is investing in your ministry, it validates your endowment campaign and demonstrates that credible stewardship organizations believe in your mission.
A Real-World Example
A Lutheran Church in a small Midwest town had talked about starting an endowment fund for years, but the idea always felt too distant, too complicated, too big for their congregation of 150 members.
Then they learned about Lutheran Legacy Foundation’s matching grant program. The church council set a modest goal: to raise $10,000 in the first year.
With LLF’s startup grant matching 50% of that first $10,000, they would receive an additional $5,000, meaning their $10,000 would become $15,000. Enough to create a meaningful endowment that could begin generating annual distributions. The campaign transformed from theoretical to tangible.
The results surprised everyone. When members understood their gifts would be matched, donations came from expected sources and unexpected ones:
- One retired couple gave $5,000 from their IRA distribution
- A farmer donated $3,000 after a good harvest
- Multiple families gave $500-1,000 memorial gifts
- Even younger members contributed $50-100, excited to be part of building the church’s future
Within nine months, the church had raised $12,000. With the startup grant providing $5,000 (50% of the first $10,000), and another 20% match on the additional $2,000, their brand-new endowment fund launched with $17,400-significantly more than their original goal.
But here’s where it gets even better. Encouraged by this success, the congregation continued giving. Over the next two years, they raised an additional $25,000 through estate gifts and continued donations.
Thanks to LLF’s accelerator grant (20% match on all new gifts), that $25,000 became $30,000 added to the endowment. The fund that started at $17,000 now stands at $51,340 and it’s only been three years.
The Multiplier Effect Over Time
But here’s where matching grants become truly powerful: the impact doesn’t stop at launch.
That endowment, growing at an average of 9.3% annually1 and providing 5% distributions, will:
- Generate on average $3,173 per year in annual ministry funding
- Grow to approximately $63,300 in ten years
- Provide over $60,000 in cumulative distributions over two decades
- Continue growing and giving indefinitely
1Returns are based on actual returns (Growth Fund) LLF experienced since inception (12-31-2014). The results achieved in our examples do not guarantee future investment results.
Without the matching grants, they would have started with $12,000 and added $25,000-only $37,000 total. The matched dollars (startup and accelerator combined) added $10,400 to the fund, literally multiplying the long-term ministry impact by more than 25%.
Practical Tips to Maximize Your Matching Grant
If your ministry is eligible for a Lutheran Legacy Foundation matching grant, here are strategies to make the most of the opportunity:
Start with anchor gifts.
Before announcing publicly, secure 2-3 significant commitments from leadership or established donors. This creates momentum and confidence.
Focus on that first $10,000.
The startup grant provides the highest match rate (50%), so concentrate initial efforts on reaching this threshold. Every dollar up to $10,000 works harder than dollars raised later.
Create urgency through milestones.
Break your campaign into smaller goals: “We’re halfway to our startup match!” is more compelling than simply asking for donations.
Tell stories, not just numbers.
Help donors visualize what the endowment will fund. “This endowment will ensure youth ministry continues strong for your grandchildren” is more powerful than “$10,000 target.”
Make it easy to give.
Offer multiple ways to contribute: cash, appreciated stock, IRA distributions, memorials, and planned gifts.
Celebrate progress publicly.
Update your congregation regularly. Consider a visual thermometer or chart showing how close you are to maximizing the match.
Think beyond startup.
Remember that the accelerator grant continues after launch—every additional dollar raised (up to $500,000) receives a 20% boost. This isn’t just a one-time campaign; it’s the beginning of a culture of endowment giving.
Accelerator Grants: The Second Wind
After establishing an endowment fund, many churches and ministries experience a burst of initial enthusiasm followed by a plateau. That’s natural—but it’s also where accelerator grants prove valuable.
An accelerator grant rewards continued fundraising, adding 20% to every gift your endowment receives. A $25,000 estate gift becomes $30,000. A $100,000 major donation becomes $120,000. This helps your endowment reach critical mass faster.
A fund that grows from $50,000 to $100,000 generates twice the annual distributions and carries twice the psychological weight with potential major donors. The accelerator grant helps you reach these milestones years sooner than you would through investment growth alone.
Lutheran Legacy Foundation works with partner organizations to help them understand how accelerator grants can amplify their continued fundraising efforts for years to come.
Beyond the Money
While the financial benefit of matching grants is clear, there’s a less tangible but equally important advantage: partnership.
When Lutheran Legacy Foundation offers a matching grant, we’re saying, “We believe in your ministry. We’re investing alongside you.” That vote of confidence:
- Energizes leadership teams
- Validates the endowment vision to skeptical members
- Attracts additional donors who want to be part of something credible
- Demonstrates professional stewardship standards
Ready to Multiply Your Impact?
If your Lutheran church or ministry has been considering an endowment fund, matching grants can transform that consideration into reality. The question isn’t whether your ministry deserves an endowment—it’s whether you’re ready to accept the boosted resources that matching grants provide.
The startup grant gets you started strong. The accelerator grant keeps you growing. And for ministries blessed with truly transformational gifts, the milestone match celebrates major legacy commitments.
Take the next step.
Contact Lutheran Legacy Foundation today to learn about available matching grants and how we can help your ministry establish or grow an endowment fund. Your donors want to leave a legacy. Let’s help them maximize their impact.
With over 250 active organization funds and $80 million under management, Lutheran Legacy Foundation has helped countless Lutheran ministries start strong and grow steadily through strategic matching grants.
