How to Give

The Foundation encourages and supports community service and charity. We seek to help individual donors and our affiliated agencies meet their charitable goals by providing them with flexibility in planning and implementing charitable gifts. The Foundation seeks, accepts, manages and distributes charitable legacies, bequests, trusts, endowments and other philanthropic funds for the benefit of our community. The Foundation is committed to the highest ethical and professional standards of fundraising, grantmaking and nonprofit management. The Foundation's programs and activities are inspired by the values of our Jewish heritage to provide for the welfare of future generations through: Tzedakah (practicing charity and justice); Tikun Olam (repairing the world); and Gemilut Chasadim (performing acts of kindness and compassion).

The Foundation actively solicits and receives gifts from individuals, corporations, public and private foundations on behalf of the Foundation and our affiliated agencies, organizations, schools and synagogues. We accept gifts in a variety of forms and administer multiple types of funds and gift vehicles for charitable purposes. We are proud of our ability to accommodate our donors' philanthropic objectives with a variety of flexible, tax-advantaged tools and options. Donors can provide ongoing support to their favorite organizations, through a variety of planned giving vehicles.

Philanthropic gifts are income tax deductible, are excluded from a donor’s estate for probate and estate tax purposes, and can consist of a variety of assets including cash, securities, real property, Israel Bonds, etc. Appreciated securities and other appreciated property held by a donor for at least one year may be donated without payment of income tax on unrealized capital gains. A donor is entitled to an income tax deduction in the year of his/her gift for the portion of the gift deemed charitable. If a donor cannot use all of the deduction in the year of his/her gift, then he/she may carry the deduction forward.

For descriptions of the types of philanthropic funds, trusts and
foundations offered at the Foundation, please click a link below:

Unrestricted Funds		Charitable Gift Annuities
Donor-Advised Funds		Charitable Remainder Trusts
Donor-Restricted Funds		Charitable Lead Trusts
Field-of-Interest Funds		Supporting Foundations
Endowment Funds		Private Foundation Transfers
Pooled Income Funds		Custodial Funds

Unrestricted gifts provide the community with the means to respond to emergencies and provide for its future by promoting necessary, creative and innovative solutions to present and future needs.

A donor may make an unrestricted gift in any amount to the Foundation’s Community Endowment Fund. A donor may create an unrestricted endowment fund with an initial gift of $1000 or more.

A donor-advised or philanthropic fund affords a donor maximum flexibility in charitable gift planning. With an initial gift of $1000 or more, a donor may create this fund in his/her own name or in any name he/she selects.

A donor or donor-designated fund advisor may recommend that grants of $100 or more be made from his/her donor-advised fund to charities of his/her choice which are permitted by law. Grants may be recommended for annual gifts, capital campaign gifts, endowments or other special interests (i.e., scholarship programs, medical research, education, services to children or the elderly). Grants may not be made to political campaigns, lobbying organizations, private foundations or to or on behalf of the donor, the advisor, the donor's or advisor's family or any person or entity related to the donor or advisor. A grant may not directly or indirectly provide an economic benefit, excluding any income tax saving that may result, to the donor or advisor.

The Foundation processes all gifts and grants in the strictest confidence and provides all donors with quarterly financial statements and annual summary reports detailing all fund activity. In order to cover its administrative expenses, the Foundation may request that a donor designate the Foundation as beneficiary of all or part of the fund’s annual earned income. The fund will be subject to a minimum annual fee in the amount of $100 or 1% of the total fund assets, whichever is greater.

A donor-restricted endowment fund can be created to support one or more specific programs, services or agencies benefiting: education or cultural arts; services to children or the elderly; academic scholarships; missions to Israel, etc. With an initial gift of $1000 or more, a donor may create this fund in his/her own name or in any name that he/she selects. The Foundation will be obligated to apply fund assets to the specific program, service or agency designated by the donor.

A field-of-interest endowment fund can be created to support a field or class of charitable beneficiaries or institutions. A donor may direct his/her gift to a particular field or class benefiting: education or cultural arts; services to children or the elderly; academic scholarships; missions to Israel, etc. In addition, a donor may direct his/her gift to a specific neighborhood, city or other locale. With an initial gift of $1000 or more, a donor may create this fund in his/her own name or in any name that he/she selects. The Foundation will have the discretion to determine the recipient organizations, agencies or programs in the field of interest and in the locale designated by the donor.

An endowment fund can serve as a perpetual legacy to honor or memorialize a loved one or an entire family. Endowment funds may be designated to support the annual United Jewish Appeal campaign or any charitable agencies, programs or purposes permitted by law.

A permanent or true endowment fund is permanently set aside to generate income. Its principal will be permanently invested, but its income may be distributed annually. The donor may define income to be distributed as dividends, interest, rents and/or realized or unrealized capital gains. If a donor limits the use of income to specific named programs, services or agencies, then the endowment is considered restricted. If a donor leaves spending discretion to the Foundation, then the endowment is considered unrestricted. Endowments are invested by the Foundation and consist of a pool of both unrestricted and restricted funds.

A term endowment is a gift in which the principal is restricted for a specific period of time. For example, a donor may create an endowment for ten years for a particular purpose. At the end of those ten years, the Foundation may use the principal or allocate it to a quasi-endowment fund.

A quasi-endowment fund is committed to long-term use by Foundation Board of Trustees resolution. Such Board-restricted funds may include unrestricted bequests or planned gifts received by the Foundation, surplus funds available at year-end (that are not needed for operating reserves), or funds resulting from asset sales. Because the donor did not restrict the funds, the Foundation may use some or all of the principal. The Foundation will establish procedures to govern distribution of income and withdrawal of principal.

A gift to the pooled income fund will allow a donor to: (1) make a gift to the Foundation and
(2) designate him/herself and a survivor to receive annual payments equivalent to the income from that gift in a fluctuating amount. Generally, a donor irrevocably transfers assets to the Foundation, the Foundation invests the assets and pays the investment income to the donor and then, when the donor dies, the Foundation uses the assets in furtherance of its mission.

The Foundation maintains one pooled income fund with an investment objective of income. An initial gift of $10,000 or more is required. Life income beneficiaries must be at least 50 years of age and payments will be made to no more than two life income beneficiaries. A pooled income fund is generally beneficial for donors aged 50 - 70 who are comfortable with a variable rate of return and donors of all ages who want to make a gift of appreciated securities (held by the donor for at least one year) in order to avoid income tax on unrealized capital gains.

A donor must execute a One or Two-Beneficiary Instrument of Transfer to the Pooled Income Fund and will receive the Pooled Income Fund Disclosure Statement. The effective date of the agreement is the date that the Foundation receives the asset(s).

Gifts will be added to the fund on the monthly valuation date. The valuation of the income payout will be determined quarterly. Payouts to donors will be made during the month following each quarterly valuation.

A pooled income fund is unique in that each beneficiary’s income is affected by the combined gifts to the fund. Therefore, gifts to the pooled income fund must be in the form of cash or publicly-traded securities that will immediately generate income. Closely-held securities are not accepted because of the difficulty in their valuation. Current law does not permit gifts of tax-exempt securities, real estate and depreciable assets.

A charitable gift annuity will allow a donor to: (1) make a gift to the Foundation and (2) designate one or two beneficiaries to receive fixed annual payments equivalent to the income from that gift for life. Generally, a donor irrevocably transfers assets to the Foundation, the Foundation invests the assets and pays the investment income to the donor and then, when the donor dies, the Foundation uses the assets in furtherance of its mission.

The Foundation offers three types of charitable gift annuities: current, deferred and flexible deferred. An initial gift of $10,000 or more is required. For a current gift annuity, the youngest annuitant must be at least 50 years of age. For a deferred gift annuity, the youngest annuitant must be at least 50 years of age when payments are to begin. A deferred gift annuity can provide an heir with income for life and is thus an attractive alternative to bequeathing a lump sum. College gift annuities are also available.

The Foundation will pay the rate established by the American Council on Gift Annuities as adjusted by the Council from time to time. The Foundation will: (1) invest all gifts received to establish such annuities as part of the Foundation’s endowment funds and (2) guarantee payments to annuitants.

A donor must execute a One or Two-Beneficiary Charitable Gift Annuity Agreement and will receive the Charitable Gift Annuity Disclosure Statement. The effective date of the agreement is the date that the Foundation receives the asset(s). If multiple securities are used to fund an annuity and they are received on separate dates, then the Foundation will establish separate gift annuities as of the date of the receipt of each security and the payment periods will begin accordingly. If cash is combined with a security to fund an annuity and the cash is received within a short period after receiving the security, then the Foundation will establish one annuity and, for payment purposes, the gift date will be the later of the receipt of the security or cash.

If the gift is funded with appreciated securities held by the donor for at least one year, then the donor avoids that portion of the capital gains tax that is attributable to the gift. However, the capital gains that are attributable to the annuity payment (and returned to the donor and/or subsequent annuitant[s]) are pro-rated over the donor’s life expectancy and taxable in each year that payments are received. Depending on the nature of the asset that funds the annuity, each payment will consist of some combination of ordinary income, capital gains income and non-taxable return of capital. When a married couple establishes a gift annuity for themselves, there will be no gift or estate tax liability.

NOTE: In order to pro-rate the taxable portion of the capital gains over the donor’s life expectancy, the annuity must be payable to the donor or instead to the donor as first annuitant and then as a survivor. If the donor establishes an annuity for one or two annuitant(s), excluding him/herself, then the donor must report the entire taxable portion of the gain in the year of the gift. Deferred and flexible deferred gift annuities may be subject to special rules concerning taxation of income.

A charitable remainder trust will allow a donor to: (1) make a gift to the Foundation and (2) designate him/herself and/or a survivor to receive annual payments equivalent to the income from that gift for up to twenty (20) years or the donor’s lifetime. Generally, a donor irrevocably transfers assets to the Foundation, the Foundation invests the assets and pays the investment income to the donor and then, when the donor dies, the Foundation uses the assets in furtherance of its mission.

1. A charitable remainder annuity trust provides the income beneficiary/ies with annual payments of a fixed amount. An annuity trust can only be funded once and does not allow for adjustments to payments as a consequence of market conditions.

2. A charitable remainder unitrust provides the income beneficiary/ies with annual payments of a fluctuating amount. This payment is a percentage of the revalued annual market value of the trust’s assets. In addition to the initial funding, a unitrust allows for additional contributions. To accommodate its ability to accept assets that are not easily converted to cash, such as real estate, a charitable remainder unitrust can take one of several forms:

(a) A net income charitable remainder unitrust provides the income beneficiary/ies with an annual payment that is the lesser of the trust’s net income or a percentage of the market value of the trust’s assets. It is appropriate for an individual using assets that are difficult to liquidate or who does not need substantial current income. Trust income is usually defined as interest, dividends and rents. However, the donor can also define capital gains as trust income for distribution purposes. A net income charitable remainder unitrust with make-up maintains a make-up account if the net income is less than the percentage of market value of trust assets in any given year. Then, in subsequent years, if trust net income is greater than the percentage of market value, income can be paid out up to the total of the current year’s percentage amount, plus any balance in the make-up account. Thus, assets may be invested for growth, deferring income payments until a later date (i.e., retirement).

(b) A flip charitable remainder unitrust is a net income trust that allows a one time “flip” from a net income payout to a percentage of the market value of the trust’s assets. The flip can occur upon the sale of any of the trust’s assets or any triggering date (i.e., a birthday) that, once established, is not within the control of the donor, beneficiary, trustee or any other person. A flip unitrust works well when a trust is funded with real estate or other non-marketable assets.

Every charitable remainder trust has a donor, trustee, income beneficiary and charitable remainderman. The donor can designate him/herself and one or more individuals to be the income beneficiary/ies for a fixed term of up to twenty (20) years or an indefinite term based on the length of the beneficiary’s/ies’ life/lives. The donor can either serve as trustee or appoint a bank or trust department to so serve. The trustee manages and invests the trust assets, makes distributions and prepares tax returns and other required filings. As remainderman, the Foundation will use the gift for charitable purposes when the trust terminates.

A donor avoids income tax on unrealized capital gains when transferring appreciated assets held for at least one (1) year to a charitable remainder trust. Payments to income beneficiaries, however, are taxable on a four-tier system (i.e., ordinary income, capital gains, tax-exempt income, return of capital).

An income beneficiary of any trust may choose to assign his/her trust income to the Foundation. If that occurs, then that income beneficiary will be considered a donor who is entitled to an income tax deduction in the amount of the present value of the future trust income payments.

Payments to income beneficiaries must be at least 5% of the initial market value of the assets (calculated differently for different types of charitable remainder trusts), must not exceed 50% of the initial market value of the assets, must come exclusively from trust assets and must not be guaranteed by the Foundation. Based on payout rates, life expectancies of income beneficiaries and the IRS discount rate that is effective at the time of the gift, at least 10% of the principal must remain for the Foundation at the end of the trust’s term. See Rev. Ruling 77-374.

Charitable remainder trusts generally provide larger deferred gifts to the Foundation and more flexibility in planning gifts of annuities or pooled income funds. However, charitable remainder trusts are more complex administratively and tax-wise.

A charitable lead trust will allow a donor to: (1) make a gift to the Foundation for a limited term of years and (2) designate him/herself and/or any non-charity beneficiary to receive the assets at the end of that term. The annual payment to the Foundation can be based on a fixed annuity amount (Charitable Lead Annuity Trust) or a percentage of the annual market value of the assets (Charitable Lead Unitrust).

A charitable lead trust can pay out less than 5% or more than 50% of the market value of the trust’s assets and can pay out for a fixed term in excess of twenty (20) years. (A charitable remainder trust is different in that, among other things, it can pay out for up to twenty [20] years or a donor's lifetime.)

There are two (2) types of charitable lead trusts: grantor and non-grantor. The income, gift and tax consequences of a non-grantor trust differ from those of a grantor trust.

Grantor trusts usually return the assets to the donor. The donor of a Grantor Charitable Lead Trust is entitled to a tax deduction in the year of the gift of the present value of the future income payments to the charity. Thereafter, the donor is taxed on the income produced by the trust even if all of that income is paid to one or more charities. Therefore, a grantor charitable lead trust is beneficial only when a donor anticipates that he/she is in a significantly higher tax bracket when establishing the trust than he/she will be in future years.

The donor of a Non-Grantor Charitable Lead Trust is using the trust to make a current gift to the Foundation and to pass assets to heirs that he/she expects will increase in value during the trust term. The grantor does not receive an income tax deduction in the year of the gift and is not taxed on the income produced by the trust thereafter. Instead, the trust itself is taxed annually and receives deductions for its payments to charities. The taxable value of the donor’s gift to the non-charity remainderman is reduced because: (1) the remainderman will receive the gift in the future, (2) the present value of the future payments to the charity are considered and (3) all capital growth in the value of the trust assets during the trust term pass tax-free to the remainderman.

Charitable lead trusts generally appeal to individuals with high net worths. Charitable lead trusts can provide significant income to the Foundation, can be structured in a variety of forms during a donor’s lifetime or in a will and can have positive income, gift and estate tax consequences.

Supporting Foundations

A donor may choose to create a supporting foundation. A supporting foundation, although affiliated with the Foundation for Jewish Philanthropies, is a separate legal entity with its own board of directors. It offers an opportunity for inter-generational participation and is ideal for donors who wish to oversee investment and grant-making decisions. A major benefit of establishing a supporting foundation, rather than a private foundation, is that a supporting foundation enjoys the status and tax benefits of a public charity because of its affiliation with the Foundation for Jewish Philanthropies. Donors may convert their private foundations to supporting foundations.

Private Foundation Transfers

There are many advantages to transferring a private foundation to the Foundation for Jewish Philanthropies as either a philanthropic fund or a supporting foundation. Donors enjoy tax and other benefits because of the Foundation’s status as a public charity. For example, there are no minimum distribution requirements, no excise taxes on earnings and substantially lower administrative costs.

The Foundation will establish and administer custodial funds for the benefit of its affiliated Jewish charities, including social service agencies, organizations, schools and synagogues. A custodial fund is created with the transfer of charitable assets from an affiliate to the Foundation which the Foundation accepts in a custodial capacity and subject to a custodial fund agreement. Legal control of the assets remains with the affiliate. The Foundation provides consulting, fund development, investment, fund management, accounting and reporting services.

To benefit one or more of the Foundation’s affiliates, a donor may make a gift in any amount to an affiliate’s custodial fund or create a custodial fund individually or with others.