Follow these steps to create a charitable fund using Thrivent Life Insurance. For help choosing a product, see Charitable Life Insurance Options from Thrivent Financial.

Creating the charitable fund

  • The donor completes and submits the Fund Workbook/How to Establish Your Charitable Fund. The Fund Workbook is the donor’s opportunity to tell the LCF what charities are to benefit from the proceeds of the life insurance gift. Please include a copy of the in-force illustration, if possible. Donors can change their charitable recommendations throughout their lifetimes. See Ways to Give: Assets, Tools and Charitable Funds for the types of charitable funds available.
  • Based on information provided in the Fund Workbook, the LCF drafts a Fund Agreement and sends it to the donor. The Financial Representative receives a copy of the Fund Agreement.
  • The donor signs the Fund Agreement and returns it to the LCF.

The application process

  • Complete the application with the insured as the owner and the Lutheran Community Foundation as beneficiary. The LCF will own the policy through absolute assignment.
  • Submit the first premium with the application to Thrivent.

Absolute assignment

  • Complete the absolute assignment form (10A on your laptop), changing ownership from the insured to the Lutheran Community Foundation. This completed, signed form can be sent to Thrivent along with the first premium and application.
  • The tax ID number for the LCF is 41-1802412; date of incorporation is Dec. 22, 1994.
  • The contract owner should sign the absolute assignment form in the presence of an impartial witness or Notary Public.

Mailing procedures

  • The life insurance application, initial premium and absolute assignment form should be sent directly to Thrivent Financial for Lutherans.
  • Mail the Fund Workbook directly to the Lutheran Community Foundation, 625 4th Ave. South, Suite 1500, Minneapolis, MN 55415.
  • Deliver the insurance contract to the insured.


Can the LCF pay out the entire death benefit to my recommended charities?

While the LCF offers options that allow for immediate payouts to charities, most of its charitable funds are designed to provide ongoing support to recommended charities on a permanent basis. The LCF begins distributing annual grants of 5.5% to the donor’s recommended charities following the year the gift was made. If the donor would like charities to receive a larger percentage of the fund for fewer years, there is an option that allows a maximum of 10% of the fund to be distributed for a maximum of 20 years. At the end of the stated time period, the remainder of the fund goes to the LCF Community Fund.

Donors can also request that the LCF distribute a portion of the death benefit to the charities at the death of the insured. The greater of $50,000 or 20% of the death benefit must remain in the donor’s perpetual charitable fund at the LCF for the benefit of the donor’s charities. More information about how charities can benefit is described on page 8 of the Fund Workbook.

Where should my client send the premium payments?

Thrivent will send premium notices directly to your client. Your client should make premium payments directly to Thrivent, unless you expect the amount of the premium to exceed 30% of your client’s adjusted gross income in that calendar year. If so, it may provide a greater tax benefit to make the payment directly to the LCF, because charitable deductions for premium payments paid directly to the insurance company may be limited to 30% of the donor's adjusted gross income, excess deductions may not be carried over to future tax years. Payments made directly to LCF are limited to 50% of donor's adjusted gross income and can be carried over for up to 5 additional tax years. Please call LCF staff to discuss this situation.

What will my client get from the LCF to use for tax purposes?

Premium payments made on charitable life insurance contracts (those owned by the Foundation) qualify as charitable contributions. Although the IRS requires that donors be sent written receipts for gifts of $250 or more, the LCF provides a written receipt to the donor for all gifts, regardless of size. If premium payments are made directly to the LCF, gift receipts are sent to the donor immediately. If premium payments are made to Thrivent, the gift is receipted quarterly after the LCF receives the information from Thrivent. At the end of the year, the donor will receive a cumulative gift receipt for the year.

Who keeps the insurance contract?

Although the LCF owns the life insurance, the donor/insured will be sent the contract to keep with his/her personal records. Then, the family will know to notify the Foundation and Thrivent of the death.

Can other types of gifts be made to the donor’s charitable fund?

Many LCF donors have made multiple gifts to their charitable funds – some have designated beneficiary proceeds to their charitable funds and some have created charitable gift annuities. The many giving options available to donors are described on pages 4 and 5 of Ways to Give: Assets, Tools and Charitable Funds.

The staff at the Lutheran Community Foundation is available to assist you and your clients with your charitable giving questions. Just call us at 1-800-365-4172 or contact us through e-mail.