Remember, there is no minimum amount to contribute a legacy gift to an endowment fund. Everyone can participate and every gift is important, welcome and appreciated.

The Jewish Community Foundation holds many different endowment funds that support innovative programs, provide vital services to those in need and respond to emergency situations. Your contributions in any amount may be directed to establish an endowment fund in your name to support one or more causes important to you. Your contributions may also be directed to an existing endowment fund, or you may create a donor advised philanthropic fund.

Named Endowment Fund

There is no minimum amount required to contribute to an endowment fund; however when you contribute a minimum of $10,000, you may create a named endowment fund in your own name or the name of someone you wish to honor or remember. When you create an endowment fund, you create opportunities - opportunities for people, places and programs that are near to your heart, that are your vision for the future. We work with you to create an agreement that defines how the funds from your endowment are to be distributed and who will benefit from your gift. An endowment fund allows you to take advantage of various tax benefits, and it will perpetuate your family name and values long beyond your lifetime.

Here are some ways you can contribute, in any amount, to an endowment fund or a donor advised fund:

• Through a bequest in your will or trust
• With life insurance
• Through one of our Life Income plans - Charitable Gift Annuities or Charitable Remainder Trusts
• Through a Charitable Lead Trust
• Through a Supporting Foundation

Bequest

• Established through your will or trust
• May be made in any amount - no matter how small or large
• May provide a tax deduction for your estate
• Provides permanent resources for organizations important to you

You may leave a bequest of a specific amount of cash or a percentage of your estate. Your estate may receive a tax deduction in the amount of your charitable bequest. If you have already drafted your will, your attorney can help you arrange a charitable bequest with a simple codicil.

Life Insurance

• May be created with a new or existing policy
• Premiums are tax-deductible
• Ability to leave a major gift to support organizations important to you

You can leave a meaningful legacy to the community by making the Jewish Community Foundation the owner and beneficiary of a new or existing life insurance policy. Your tax benefits are immediate. When transferring an existing policy, you receive a tax deduction for the approximate cash value of the policy, and all premiums on a new or transferred policy that are paid from the date of the gift are tax-deductible. This is a particularly attractive option for younger donors who can purchase life insurance policies with very low premiums.

Life Income Plans
-- Charitable Gift Annuities, Charitable Remainder Annuity Trusts or Charitable Remainder Unitrusts

Life income plans pay income for life (or for a term of years) to you or a beneficiary and the remainder becomes an endowment fund with the Foundation to support causes of importance to you. Here are descriptions of these Life Income Plans.

Charitable Gift Annuity

• Provides income for life
• Provides charitable income tax deduction
• May remove asset from taxable estate

A Charitable Gift Annuity benefits you and organizations important to you. In exchange for your gift, you will receive a fixed income for life. A portion of the gift qualifies for a current income tax charitable deduction, thereby reducing your taxes now, while the full value of the gift may be removed from your estate.

Charitable Remainder Annuity Trust or Charitable Remainder Unitrust

• Provides lifetime income
• Eliminates initial tax on capital gain tax on initial sale of appreciated property
• Provides a current income tax charitable deduction
• May avoid estate taxes on contributed assets
• Enables you to make a significant contribution to organizations important to you

A Charitable Remainder Annuity Trust provides a way to avoid fluctuations in the amount of income you may receive and ensures that you or someone you designate receives a fixed income. This trust agreement locks in a long-term annuity rate and you or your beneficiaries receive regular annuity payments for life, or for a term of up to 20 years. The payout rate varies, but is generally in the 6% to 7% range.

A Charitable Remainder Unitrust provides a way to obtain an income for life which can grow as the funds invested in the trust grow. The Unitrust provides a variable payment, calculated annually. If trust assets grow, the increasing value of the trust portfolio will result in larger annual payments to you or your beneficiaries.

Ultimately, the remainder in the trust is used to support organizations important to you.

Charitable Lead Trust

• Transfers property to your children or grandchildren while making a significant contribution to organizations important to you
• May offset gift and estate taxes on inter-generational transfers of assets
• May eliminate gift or estate tax on future appreciation of the transferred assets

A Charitable Lead Trust is established for a specific term by contributing an income generating asset, often real estate. The trust pays a fixed annual amount to the organization you specify until the end of the term. At that time, the assets are transferred to the beneficiary.

Supporting Foundations

• Provides tax benefits that are more favorable than those available to private foundations
• Is not subject to excise taxes on investment income
• Is free from restrictions on investments and minimum distribution requirements which apply to private foundations
• Offers ability to make grants, investments and management

Supporting foundations are separately incorporated nonprofit entities, which qualify for public charity status because of their direct affiliation with the Jewish Community Foundation, a qualified public charity. Each supporting foundation has a separate board consisting of family members and Jewish Community Foundation appointees, whose responsibility is to guide investment policies and to select the charities to be supported. Your supporting foundation also creates a family legacy. By allowing children and grandchildren to participate, it can bring together many generations of family values and philanthropic concerns.

Transfer of a Private Foundation
If you already have a private foundation, you may wish to consider transferring it to the Jewish Community Foundation to take advantage of the tax advantages and administrative assistance linked to an association with a public charity. You may transfer the private foundation to a donor-advised philanthropic fund or supporting foundation, or to a permanent endowment fund as a legacy to the community.

If you would like to discuss these Planned Giving in more detail, please contact the Jewish Community Foundation at info@jcfphoenix.org or call (480) 699-1717.