Types of gifts
Gifts come in many forms. When making outright or pledge gifts, your gift is made available to the Foundation during your lifetime, while most planned or deferred gift options will benefit the Foundation through your estate. There are two types of gifts: restricted and unrestricted. Each benefits the Foundation.
When a donor makes an unrestricted gift, they do not specify an area that will benefit from the gift. Instead, the gift is directed to the Foundation, which receives input from the school about their greatest needs.
Making a restricted gift allows you to designate a specific use for the funds, such as support for students, faculty, facilities or various programs. For example, you may prefer to fund scholarships, a new library addition or a program.
In addition, gifts can be designated as either expendable or endowed.
A gift to an expendable fund can be used immediately by the Foundation for the purposes you designate. The principal of an expendable gift of $5,000, for example, would be available in its entirety to the program or project you designate. The advantage of expendable funds is that they provide immediate support for the ministry of our schools.
When you establish an endowed fund to support a specific area in education, your gift is invested and only the annual investment income will be available for use by the Foundation. The net income earned annually from the investment is used for the purpose of the fund. The advantage of endowed funds is that they grow over time, providing increasing support for Lutheran Education.