You may consider giving a combination of an outright gift and a deferred gift. This enables you to start or fully endow a program during your lifetime, and make a provision in your will, or through another planned gift, to add to the endowment after you pass away. A planned gift will enable you to fulfill your philanthropic goals by creating a legacy, benefiting the Jewish community for generations to come and helping ensure a vibrant future.
A bequest is a legacy gift, distributed from the donor’s estate after the end of his or her life. You can create a permanent legacy by leaving a bequest in your will or trust of a specific amount of cash, a specific asset, a percentage of your estate or the remainder of your estate. You may choose to make a gift of cash, securities or other property–and your estate may receive a tax deduction in the amount of your charitable bequest. A charitable bequest allows you to retain use and control over your assets during your lifetime.
Charitable Gift Annuity
A charitable gift annuity (CGA) is a simple planned giving instrument in which a donor contributes cash or property to the charity and, in return, receives fixed, lifetime income payments for one or two designated individuals. In addition to lifetime income, a CGA will generate an income tax deduction, partly tax-free annuity payments, and avoidance of capital gains tax, if applicable.
Charitable Lead Trust
A CLT allows you to benefit from the tax savings that result from supporting your favorite Jewish organization and transfer assets to heirs. You give assets to a trust that pays your favorite charity an income for a number of years or life. The longer the length of time, the better the gift tax savings for you. When the term is up, the remaining trust assets go to your family or other beneficiaries you select. A Charitable Lead Trust is an excellent way to transfer property to family members and heirs at a minimal tax cost. You and your professional advisors would select the best payout rate and trust term for you.
Charitable Remainder Trusts
A charitable remainder trust is a way to establish a lasting legacy in your name and receive income from the trust for life or for a specified number of years. Upon expiration of that term, the remainder of the trust goes towards the charitable purpose you established at its creation. Your charitable remainder trust can be designed as either an Annuity Trust, with a fixed annual payment to you, or as a Unitrust, in which case you are paid a percentage of the value of the assets.
Gifts of Cash, Stock or Real Estate
A current gift of cash or other property can establish a permanent endowment during your lifetime that will make distributions to the Jewish community in perpetuity. Your fund may be used to pay an annual gift to the charity of your choice. If you donate appreciated securities held for more than one year, you can avoid capital gains taxes, if applicable, and receive a tax receipt for the full value of your gift in the current year. The most common forms of securities gifts are shares of stock, bonds and mutual funds. Gifts of real estate may include a house, apartment building, vacation home, commercial buildings or income-producing and non-income-producing land. You can make an outright gift of real estate property now or through your estate. Gifts of real estate typically require certain procedural steps, including a site visit to the property, a qualified appraisal, a preliminary title report and an environmental assessment. A gift of real estate could be an excellent way to unlock the full-appraised value of a property, allow for significant tax and economic advantages, and have an impact in the Jewish community.
Life Insurance Policy, IRA and Retirement Plan Beneficiary Designation
You may designate a Jewish agency, synagogue or Federation as the beneficiary of your life insurance policy, IRA or qualified retirement plan (such as a 401(k) or 403(b) plan). You may also choose to create a new insurance policy, owned by the United Jewish Endowment Fund. This can allow you to pay premiums to UJEF while receiving a charitable tax deduction. Certain programs are available for policies above a minimum threshold dollar amount in which UJEF would share the cost of a new policy with you.
This information is intended as an educational tool. The information presented is to provide general information only and should not be construed as legal or accounting advice. Because tax and financial consequences involved with any gifting program depend on personal financial circumstances, individuals should consult with their own financial, legal and accounting advisors to review any charitable estate planning options.