7 Tax-Savvy Ways to Support Your Family and Ministry in 2026 

Explore practical ways to support LCMS ministries while making wise use of current tax rules. 

Starting 2026 with a clear giving plan can bring peace of mind, support the LCMS ministries you love and make wise use of current tax rules. This guide introduces several charitable tools that many LCMS members use as they practice faithful, thoughtful stewardship.  

Gifts of cash
Direct gifts of cash are often the simplest way to support ministry and may reduce your taxable income if you itemize deductions. In 2026, certain above-the-line deduction opportunities are expected to allow many non-itemizers to claim a limited charitable deduction, subject to current IRS rules and thresholds. 

A cash gift to ministry can be made outright or in response to a specific appeal, and it can be an easy first step toward more intentional planned giving over time. As always, donors should consult their own tax or legal advisor for guidance on how current law applies to their situation. 

Donor-advised funds
A donor-advised fund (DAF) allows you to make a charitable contribution to a sponsoring organization, receive a deduction in the year of the gift (subject to IRS limits) and then recommend grants to ministries over time. Some donors “bunch” several years of charitable giving into one year to surpass the adjusted gross income (AGI) thresholds needed to itemize. 

This approach can create a pool of charitable resources that continues to support LCMS congregations, schools and other ministries in future years. For some, a DAF becomes a practical way to involve children and grandchildren in deciding which ministries to support. 

Gifts of appreciated stock
Transferring appreciated stock instead of cash can be a tax efficient way to support the ministries you love. When appreciated stock is donated directly to a qualifying charity, donors may be able to deduct the fair market value and avoid paying capital gains tax on the increase. 

This strategy can be especially helpful for donors who have held securities for more than one year and are interested in rebalancing their portfolios. It also allows more of the asset’s value to go directly to ministry rather than to taxes. 

Qualified Charitable Distributions from IRAs
Beginning at age 70½, many donors can make Qualified Charitable Distributions (QCDs) by directing funds from a traditional IRA straight to a qualified public charity (ie. 501(c)(3) charity). These distributions, within IRS limits for 2026, may be excluded from taxable income and can count toward all or part of the donor’s Required Minimum Distribution (RMD). 

Because a QCD does not show up as taxable income, it can benefit donors who do not itemize deductions as well as those who do. For LCMS members already taking RMDs, QCDs can be a meaningful way to support ministry while potentially reducing income tax. 

Charitable gift annuities
A charitable gift annuity (CGA) is an agreement in which you transfer assets to a ministry such as LCEF and receive fixed payments for life. The payment rate is typically based on your age at the time of the gift, and donors may receive an immediate charitable income tax deduction, subject to IRS rules. 

Many LCMS members appreciate the combination of predictable income and long-term support for ministry that a CGA provides. For some, it becomes part of a broader plan to care for a spouse or loved one while also blessing future generations through ministry. 

Charitable remainder unitrusts
A charitable remainder unitrust (CRUT) allows you to transfer appreciated assets—often stock or real estate—into a trust without immediately recognizing capital gains. The trust then makes income payments to you or other beneficiaries for life or for a term of years. 

At the end of the trust term, the remaining assets go to the ministries you have named, such as your church, LCEF or another LCMS ministry. For donors with larger, highly appreciated assets, a CRUT can be a flexible tool that combines income, diversification and charitable impact. 

Life estate reserved
With a life estate arrangement, a property owner deeds a residence or farm to a charity but retains the right to live there for life. The donor may receive an income tax deduction in the year the life estate is created, while continuing to use and care for the property. At the end of the life estate, the property passes to the designated ministry without going through probate. For some donors, this can be a way to affirm their desire to support LCMS ministries in the future while remaining in the home they love.  

Taking the next step
If you are wondering which of these options might fit your situation, consider your goals: Do you hope to simplify your giving, create a new income stream or make a larger legacy gift to LCMS ministries? Reflecting on these questions can help you speak more clearly with your own tax or legal advisors. 

LCEF can assist donors with each of the gifts described above. To learn more about these tools and how they can support the ministries you love, contact the LCEF Gift Development Team or call 314-885-6595. Our team can walk alongside you and your advisors as you explore faithful, tax-savvy ways to support ministry in 2026 and beyond. 

Gifts to LCEF may be tax deductible as permitted by law. Consult your tax or financial advisor for applicability to your own situation. Neither LCEF nor its representatives give legal, accounting or tax advice. Gift results may vary. Consult your tax advisor as to the applicability of this information to your own situation. This information is not intended as tax, legal or financial advice.