If you would raise this question about the motivation for people’s giving, I think you’d hear a variety of answers. If you asked many tax experts, you might hear an answer like this: "Your taxes will be significantly reduced. Give it away or pay it in taxes - you decide."

If you asked someone who isn’t a church member, you might hear an answer like this: "If you’re good to God, he’ll be good to you."

If you would ask some church members, they might respond by saying, "It makes me feel good."

If you asked your pastor, his answer would sound something like this: "We give to the Lord’s work out of love and thanks for all his blessings." He might even go on to say, "It’s an opportunity the Lord gives us to share our blessings and our values so they can benefit a wider circle of people."

Depending on a person’s perspective, supporting the Lord’s work might seem like a good financial move, it may erroneously appear as a way to gain favor with God, or it might be a faithful follower’s humble way of simply saying thanks. What’s your motivation for supporting the Lord’s work?

Members of the Federation congregations that support Shoreland Lutheran High School have the opportunity to support the Lord’s work in their local congregation, but they also have a special opportunity and privilege to support the ministry that takes place each day at their Lutheran high school.

When Shoreland was established, people gave of themselves to make a dream become a reality. They worked tirelessly so that the teenagers of the 1970’s would have a place where they could grow in their faith through a daily exposure to God’s Word.

From that day until now, many things have changed. The need to stay close to God and his Word has not. The teen years have never been easy. There have always been temptations and challenges, but today’s teens are faced with an even wider variety of choices than those of the last generation.

The Lord continues to amaze us by giving us more and more students. The higher projected enrollment figures will be a true test of our commitment to Christian education. We have no doubt that the Lord will give us the facilities we need and the expanded teaching staff to serve the next generation of young people who come through the doors of Shoreland.

As we look ahead to the challenges before us, it is - and will always be - the goal of the students, parents, faculty, administration, and Federation congregations to support the work of the Lord that takes place at Shoreland. Why? Financial support is given for many reasons, but the underlying cause of the support people give to Shoreland is the recognition of God’s undeserved love. It comes from a desire to use in God’s service what he has given to us. Support comes from people who want to make a difference in the lives of the next generation of the Lord’s followers.

But what about you? How can your support be a blessing to others? Do you share the vision of maintaining and extending the ministry of Shoreland? If so, you have many opportunities to support and further God’s work here. Listed below are four areas where your support can truly make a difference.

Tuition Assistance Fund This fund provides direct financial assistance to families of students who want to attend Shoreland Lutheran High School but have great difficulty meeting their financial responsibilities to the school.

Special Gifts Fund This fund receives donations designated for specific equipment or projects which are outside the scope of the regular operating budget.

Capital Expansion Fund This fund receives donations to expand the facilities of Shoreland Lutheran High School. This fund is an important part of our planning process as we look to the future.

The Shoreland Foundation This fund receives donations to increase the endowment that has been set up to give Shoreland an ongoing stream of income. These funds are invested by the Foundation in order to receive the greatest return possible. The principal amount of this fund remains intact; only the income is used for school expenses.  See the article below for more information.

Shoreland Lutheran High School Foundation

Did you know that Shoreland Lutheran High School has a Foundation? The SLHS Foundation, Inc. was incorporated in 1987 as a separate corporation with a separate board of directors responsible directly to the SLHS Federation General Board.

The purpose of the Foundation is to provide, direct, and manage funds given to support the ongoing ministry of Shoreland Lutheran High School. The Foundation Board consists of dedicated individuals from Federation member congregations.

Did you know that your contribution to the SLHS Foundation becomes a perpetual source of support for SLHS? All funds received are invested by the Foundation Board with earned income distributed as needed. No principal may be distributed at any time. The Foundation is an endowment. In 1999, the assets of the Shoreland Foundation totaled $322,082. Because of wise investment, 91 students received financial assistance as a result of the Foundation.

How can I contribute to the SLHS Foundation? There are many different ways for a donor to contribute to our school Foundation. Each type of charitable gift is unique in what it does, the tax advantages it offers, and the most appropriate time to use it.

Listed below are the most popular ways to contribute to our Foundation and some of the advantages of each.

Direct Gifts

A direct gift is when a donor gives an asset, such as cash or stock, directly to the endowment fund. All potential donors can use this method, regardless of age, the size of their estate, or the amount of their gift. A donor who makes a cash contribution is eligible for an income tax deduction, while a donor who makes a gift of a capital asset, such as stock, is eligible for an income tax deduction and can avoid paying capital gains taxes on the asset’s earnings.

Bequest

A bequest is made when someone gives assets, such as stocks, bonds, and personal property, through their will. Any potential donor, regardless of age, the size of their estate, or the amount of their gift, who has a will can make a charitable bequest. The value of the gift is removed from a person’s estate, which reduces the amount owed in estate taxes.

Qualified Asset Beneficiary Designation

When a potential donor names another person as the beneficiary of a qualified retirement investment (401k), TSA, IRA, etc.), the asset will be exposed to income taxes, and depending upon their net worth, estate taxes. These taxes can greatly reduce the amount the beneficiaries actually receive. Instead of naming another person as the beneficiary, a donor can name the endowment fund, which is not required to pay taxes. By doing so, the donor’s estate receives a tax deduction at the donor’s death. This giving option is most appropriate for donors 40 and older.

Net Income with Make-Up Provision Charitable Remainder Unitrust (NIMCRUT)

Donors give through a NIMCRUT by transferring cash or a capital asset, including real estate, to a trust. The trust is required to pay the donor an income for specific term. The income options under a NIMCRUT are flexible and can be based on a donor’s financial needs during the trust term. A NIMCRUT is most appropriate for donors between the ages of 45 and 65 who can contribute $100,000 over the life of the trust. The tax benefits include income tax deductions, capital gains tax avoidance, gift tax deductions, and estate tax deductions.

Charitable Life Insurance

Donors can use life insurance to make a donation in a number of ways:

• they can transfer ownership of a life policy they already have to the endowment fund,
• they can cash out a current policy and give the proceeds to the school,
• they can purchase a new life insurance policy and name the endowment fund as the owner and beneficiary, or
• they can designate the school as the beneficiary of a life insurance policy they continue to own.

Charitable life insurance is an appropriate giving vehicle for most donors, and it offers tax benefits, which may include income tax deductions, gift tax deductions, and estate tax deductions. All potential donors can use this method, regardless of age or the size of their estate.

Charitable Gift Annuity

To make a gift through a charitable gift annuity, a donor gives an asset, such as cash or stock, to the church and the church signs a contract agreeing to pay the donor a fixed income throughout their lifetime. This option is most appropriate for donors 65 and older, who can contribute at least $15,000. The tax benefits include income tax deduction, capital gains deferral, gift tax deductions, and estate tax deductions.

Charitable Remainder Annuity Trust (CRAT)

Donors give through a CRAT by transferring a one-time contribution of cash or a capital asset to a trust. The trust pays the donor or someone the donor designates a fixed income for a specified term. At the end of the term, the principal remaining in the trust is passed on to the Foundation. A CRAT is most appropriate for donors 65 and older whose gift is worth at least $50,000. The tax benefits include income tax deductions, capital gains tax avoidance, gift tax deductions, and estate tax deductions.

Charitable Remainder Unitrust (CRUT)

Donors give through a CRUT by transferring cash or a capital asset, including real estate, to a trust. The trust then pays the donor or someone the donor designates a fluctuating income, based on a percentage of the trust’s value, for a specified term. Unlike a CRAT, donors can make additional contributions to a CRUT. At the end of the term, the principal remaining in the trust is passed on to the endowment fund. A CRUT is most appropriate for donors 50 and older who can contribute $100,000 over the life of the trust in cash or capital assets. The tax benefits include income tax deductions, capital gains tax avoidance, gift tax deductions, and estate tax deductions.

Testamentary Charitable Remainder Trust

In this arrangement, a donor names a charitable remainder trust as the beneficiary of cash or capital assets. After the donor dies, their estate gets a tax deduction and the trust pays the surviving spouse or someone else the donor designates an income for their lifetime. After the death of the survivor, the remainder of the trust is passed on to the Foundation. A testamentary charitable remainder trust is most appropriate for donors age 40 and older, who can contribute at least $50,000 for a CRAT, and $100,000 for a CRUT.

Charitable Stock Redemption

Donors who have stock in a closely held corporation can donate that stock to a Charitable Remainder Trust, which means they get an income from the trust for a specified term. The closely-held corporation would then offer the endowment its outstanding shares of stock, which provides the corporation certain tax benefits and increases the ownership interest of the other shareholders. After the trust term, the remaining assets are passed on to the endowment. Charitable stock redemption is most appropriate for donors age 50 and older who can contribute at least $200,000 in closely held stock. Tax benefits include income tax deductions, capital gains to avoidance, and gift tax deductions.

Grantor Charitable Lead Trust

In this arrangement, a donor transfers cash or capital assets to a trust, at which time the donor is entitled to a charitable income tax deduction. The Federation would then receive an annual income from the trust for a specified period. At the end of the trust term, the remainder of the trust is returned to the donor. A grantor charitable lead trust is most appropriate for donors age 50 and older who have at least $250,000 to contribute, and whose estate is worth at least $1,500,000.

Family Charitable Lead Trust

In this arrangement, a donor transfers cash or capital assets to a trust, which pays the Foundation an annual income from the trust for a specified period. At the end of the trust term, the remainder of the trust is passed on to the donor’s family or other non-charitable beneficiary. A family charitable lead trust is most appropriate for donors age 50 and older who can contribute at least $250,000, and whose estate is worth at least $1,500,000. Tax benefits include gift tax deductions and estate tax deductions.

Charitable Life Estates

In this arrangement, donors deed their primary residence, vacation home or farm to the endowment, but still maintain ownership of the property and continue to live there. After the donor dies, the property is passed on to the Federation. Charitable life estate is most appropriate for donors age 50 and older, whose property is worth at least $100,000. Tax benefits include income tax deductions, gift tax deductions, and estate tax deductions.

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