Determine The Asset to be Donated

The Jewish Foundation accepts cash, appreciated stock and shares in a mutual fund, life insurance, Israel Bonds, real estate and personal property such as antiques and jewelry. The Foundation can also be named as a beneficiary of a retirement plan or insurance policy. Some of these assets are more appropriately used for one kind of gift than another.

Decide the Timing of the Gift - Today or Tomorrow

Today - Current, Outright Gifts

There are three advantages to making an outright gift.

  1. The community immediately benefits because the Foundation can use the earnings from the endowment fund as soon as the donation is made.
  2. The donor receives a federal tax deduction for the full fair market value of the gift subject to contribution limitations.
  3. The asset is removed from the donor's taxable estate.

Tomorrow - Future, Deferred Gifts

Several benefits also result from making a deferred gift.

  1. The donor may be able to retain use of the asset or income from it during his or her lifetime.
  2. The asset is also removed from the donor's taxable estate.
  3. The donor often receives a partial tax deduction.
  4. The community will benefit from a deferred gift some time in the future.

In both cases the donor leaves a lasting legacy within the Jewish community of Greater New Haven.

Discover the Reciprocal Benefits of Planned Giving with the Jewish Foundation

Charitable Gift Annuities Can Provide You With Additional Annual Income and a Tax Deduction.

A planned gift, such as a life-income plan with a charitable gift annuity, is not only smart tax planning, but can be part of your retirement plan as well. This is because a charitable gift annuity, in addition to benefiting your community and providing you with an immediate income tax deduction, will also provide payments to you, at regular intervals, throughout your lifetime. In addition, a Jewish Foundation of Greater New Haven charitable gift annuity remainder can be used to fund an endowment for your synagogue, your favorite agency, or any other charitable cause you hold dear (Jewish or non-Jewish, in Greater New Haven, Israel or beyond).

A Charitable Gift Annuity is created through an agreement between a donor and the Foundation for the benefit of both. These annuities can be used both as retirement planning vehicles for individuals younger than 65, and as current income generating vehicles for those 65 or older.

Advantages of a Charitable Gift Annuity:

  1. Guaranteed annual income;
  2. Primary or supplementary tax-advantaged retirement plan;
  3. Portion of income may be received tax-free;
  4. Current income tax charitable deduction;
  5. Reduction of estate taxes; and
  6. Opportunity to make a significant gift to the Foundation or to another charitable organization.

Retirement Assets

Did you know that if you have a taxable estate, after applicable estate and income taxes have been imposed, as little as 25% of every dollar might remain for your beneficiaries?

There is a sensible charitable alternative that makes tax sense for you and your heirs: name the Jewish Foundation as the beneficiary of your retirement plan, then use other assets not subject to income tax to make gifts to your heirs. The Jewish Foundation won't pay income tax on the retirement asset and your heirs will receive their share of your estate without the burden of extra taxes. If you are not sure what your estate's tax situation may be, consider naming your heirs as the primary beneficiary of your retirement assets and naming the Jewish Foundation as a contingent beneficiary thus allowing your heirs, should they desire, to disclaim their interest in your retirement assets in favor of the Jewish Foundation.

Charitable Remainder Trust

Charitable Remainder Trusts are often used for gifts in excess of $100,000 wherein the donor wants an income stream for life or term of years. Upon termination of the trust, the remainder (the principal remaining in the trust along with any undistributed income) is distributed to one or more nonprofit organizations designated by the donor in the trust instrument. Donors are eligible for a partial income tax deduction, which is based on the age of the beneficiary(ies) and the income stream from the trust. Donors with highly appreciated, low yielding assets who want to reduce the size of their taxable estate, increase their return, and create a fixed income stream often choose charitable remainder trusts.

Charitable Lead Trust

An interesting form of gift is a Charitable Lead Trust that is a current gift to charity and a deferred gift to one's heirs. In a Charitable Lead Trust, assets are placed in trust for a specific number of years and the Foundation and/or other charities receive income generated by the assets during the term of the trust. At the end of the trust term, the assets are then transferred to the donor's beneficiaries. This gift works well for people who do not need the current income and wish to transfer wealth to heirs at a significantly reduced gift and estate tax cost. Growth stocks, high fixed income securities and real estate are most appropriate for this type of trust since they often can produce the income needed for the payment to charity. In addition, the donor pays no taxes on the amount that is paid to the charity.

Bequests

Bequests Offer Maximum Flexibility

A bequest is a gift that becomes effective at your death. By deciding to leave a charitable bequest in your Will or other testamentary vehicle, you can create a permanent legacy. There is no limit on the amount you may set aside from your estate-it can be as large or as small as you want. You can fund a bequest with cash, securities or other property-and your estate will receive a tax deduction in the amount of the charitable bequest. Since bequests are revocable, while you are alive, your assets are entirely available for your use. In addition, you can incorporate new ideas or adjust to changes in your circumstances at any time.

Creating a Legacy

During your lifetime, you can establish a named fund at the Foundation and further fund it at your death. You can also designate the Foundation on assets such as an IRA or insurance policy. Your bequest to the Foundation can be for an unrestricted or a restricted use.

 

SAMPLE BEQUEST LANGUAGE

 

SPECIFIC BEQUEST

 

Flexible amount -- greater of fixed dollar amount or percent of total estate

 

I devise and bequeath to the Jewish Foundation of the Jewish Federation of Greater New Haven, the greater of (A) _______________ dollars ($_______) or (B) an amount equal to ___ percent (__%) of my residuary estate as valued purposes of ___________________________________. (e.g., Jewish education, the Jewish Community Center, etc.)

________________________________________________________________________

 

GENERAL BEQUEST

 

Flexible amount -- greater of fixed dollar amount or percent of total estate

 

I devise and bequeath to the Jewish Foundation of the Jewish Federation of Greater New Haven (the “Foundation”), the greater of (A) _______________ dollars ($_______) or (B) an amount equal to ___ percent (__%) of my residuary estate.  Fifty percent (50%) of this gift shall be used by the Foundation for its unrestricted funds and fifty percent (50%) shall be used to support Jewish Services in or around ______________________.  The Executor of my estate shall first use any property the receipt of which by my estate would constitute income in respect to a decedent for federal income tax purposes in satisfying this bequest.

________________________________________________________________________

 

 

PACE/LOJE BEQUEST

 

I devise and bequeath to the Jewish Foundation of the Jewish Federation of Greater New Haven (the “Foundation”), the greater of (A) _______________ dollars ($_______) or (B) an amount equal to ___ percent (__%) of my residuary estate.  This gift shall be used by the Foundation to establish a (A) Perpetual Annual Campaign Endowment fund, entitled the “___________ PACE Fund,” or  (B) Lion of Judah Endowment fund, entitled the “___________LOJE Fund,” which shall be administered according to the Foundation’s guidelines for the administration of PACE/LOJE funds, as amended from time to time. The Executor of my estate shall first use any property the receipt of which by my estate would constitute income in respect to a decedent for federal income tax purposes in satisfying this bequest.