Lutheran Legacy Foundation is an Illinois not-for-profit organization, exempt from federal and state income tax under Section 501(c)(3) of the Internal Revenue Code, a public charity, not a private foundation. A copy of the foundation’s Internal Revenue Service determination letter is available on request. Lutheran Legacy Foundation is also registered as a charitable organization with the Illinois Attorney General.
Lutheran Legacy Foundation’s annual reports, on file with the Internal Revenue Service and Illinois Attorney General, are available on request or may be viewed online with the Illinois Attorney General and GuideStar.
As a public charity, contributors to the foundation may take full advantage of income, gift and estate tax deductions. A wide range of charitable vehicles may be utilized, including gifts of cash, appreciated assets, land, charitable remainder trusts, charitable lead trusts, bequests, beneficiary designations and more. All gifts are subject to policies for acceptance of gifts, execution of fund agreements and approval by Lutheran Legacy Foundation’s Board of Directors.
Contributions to the foundation may qualify for income tax deductions of up to 50 percent of adjusted gross income for cash and 30 percent for appreciated assets. Other percentage limitations may apply to different types of assets, but are generally higher than those allowed to private foundations.
Lutheran Legacy Foundation’s public charity status also provides relief from a number of private foundation restrictions, which may make the foundation a viable alternative to the formation or continuation of a private foundation. In addition, a private foundation may wish to make grants to Lutheran Legacy Foundation to relieve the burden of continued supervision and investment management. Lutheran Legacy Foundation is not subject to excise taxes on net investment income or minimum distribution requirements.
Contributions to the foundation are irrevocable and subject to variance power vested in the board of directors. Funds established in the foundation may, however, be directed to some extent by the donor. Information on the types of funds and donor involvement are available elsewhere in this website.
Lutheran Legacy Foundation, its attorneys and its accountants do not provide legal or estate planning advice. While the discussion in these materials presumes that gifts to Lutheran Legacy Foundation will provide tax benefits, donors should consult with their tax advisors regarding contributions and their tax effects.