How their gift of land is educating children in Jamaica

Lutheran Pastor Gene Handwerk and his wife, Lenore, feel very blessed in their retirement. They had spent their lives serving God and now they felt they wanted to spend their retirement years helping children and perhaps travel a bit more. They are especially passionate about educating children and saw the chance to make a difference. The Handwerks own several tracks of farmland in the Lehigh Valley of Pennsylvania. The land has been in Gene’s family for many generations.

Objectives

  • Fund their ministry of passion to educate children.
  • Provide purposeful work for this phase of their lives together.
  • Optimize the impact of gift as well as the financial benefit to them personally.

Solution

  • The Handwerks donate one track of farmland.
  • The Handwerk’s 62-acre gift sold within a week, providing $465K to fund their Donor Advised Fund (DAF) through the Moravian Ministries Foundation in America (MMFA).
  • The Handwerks can claim an income tax charitable deduction (up to 30% of adjusted gross income) in the tax year of the gift – unused deductions can be carried forward for five additional years.
  • The Handwerks make grant recommendations during their lives and make provisions for the work to continue after they enter the Lord’s presence.

How it Works

  • The Handwerks donate 62 acres of land to fund their DAF through MMFA.  
  • MMFA sells the property.
  • The Handwerk’s DAF receives the proceeds and they will use their charitable income tax deduction to lower their tax burdenover the next few years.
  • The Handwerks now have a charitable account where they have retained the privilege to recommend grants over time to the charities of their choosing.
  • The Handwerks make grants to support a variety of good causes (half of the money must go to support Moravian ministries). Their grants to Central Moravian Church are used to educate English-speaking children in Jamaica.

Results

Most importantly, the Handwerks can rest easy knowing their assets have been used wisely in service to God. They can also broaden their philanthropic reach by funding new charities and they will get to see the impact of their philanthropy as they travel. Does a donor advised fund make sense for you? Please contact Chris Spaugh at 888- 722-7923 or email us at daf@mmfa.info to learn more.