|
JFS Endowment Funds
Donation of Appreciated Stocks
IRA or Other Qualified Plan Donations
Life Insurance Donations
Bequests
Please call Jewish Family Service at 717-233-1681 for assistance with donations.
JFS ENDOWMENT FUNDS
Endowment fund: A fund kept in perpetuity to provide income for a
charitable institution or purpose.
Jewish Family Service's Endowment Funds now approach one million dollars.
These endowments are held with the Jewish Community Fund of Central Pennsylvania and at The Foundation for Enhancing Communities (formerly The Greater Harrisburg Foundation). The income is available annually for Jewish Family Service to use toward
specific fund choices. These are permanent endowments; their principal remains untouched but their income
will always go to Jewish Family Service.
Our Endowment Funds accept gifts of money, appreciated securities, planned
gifts of insurance policies, retirement plans, and non-traditional assets, and donations in accordance with
wills and trusts.
Donors wishing to create named funds are encouraged to contact JFS. Named
funds are suitable for those who wish to:
- Honor or memorialize a loved one
- Commemorate a special occasion
- Involve family members in giving together
- Ensure the continuation of a program or service of particular importance
- Build a significant gift over time
Giving is about values. These values include teaching children to observe the
mitzvah of tzedakah and tikkun olam by helping our neighbors and elders live independently in a dignified
manner. These values lie at the heart of each relationship our donors have with our organization.
Giving to the Jewish Family Service Endowment is an excellent way for you and
your family to focus your charitable giving, and provides a way for future generations to experience the
values of Jewish giving through your thoughtfulness. The wonderful thing about your endowment gift is
that it will continue to give, benefiting far more people that you might initially imagine.
The first endowment fund at Jewish Family Service
was established in 1987 to benefit one of our oldest programs – Kosher Meals
on Wheels. The next fund was established with the aim of providing a permanent
source of capital to meet program and service needs as they arose. Since that
time, other separate endowment funds have been established that support specific
programs such as Counseling, Family Life Education, Jewish Healing Center,
Outreach Programs, and for operating resources. This collection of funds,
invested and well managed, creates future benefits by leveraging present resources.
Return to Top
Donating Appreciated Stock Makes Sense!
People often acquire stocks and mutual funds when
they are young and hold them for many years. Over time, those securities grow
in value. To avoid capital gains tax on the sale, you can donate the stock
instead to JFS and take a current income tax charitable deduction equal to
the fair marker value of the stock.
You may want to consider giving appreciated stock
for year-end giving, or any time during the year for that matter. Many people
consistently give stock rather than cash donations, avoiding paying capital
gains tax when they sell.
For example, Mr. and Mrs. Cohen have an account
with a brokerage company. They know that one of their stocks has grown from
$15.00 a share to $75.00 a share over the last few years. They have considered
selling the stock and making some gifts to family and charity. But, their
broker let them know that they would have to pay tax on the appreciation,
which is $60.00, and suggested they give shares of the stock to charity directly
to avoid the capital gains tax.
They ended up giving 100 shares of the stock to their
favorite charity. They will receive a charitable income tax deduction of $7,500
on the stock for which they paid $1,500. Since they are in a 31% tax bracket
and file an itemized tax return, they will possibly save $2,325 in taxes.
They contributed the savings to their grandchildren's college funds.
There is great value in giving appreciated stocks, instead of cash. Some
professional financial advisors would argue that it is the best way to give gifts of $1,000 or more.
Return to Top
IRA or Other Qualified Retirement Plan
Your retirement plan is designed to benefit you during your retirement. You’ve
named your spouse as your beneficiary and contingent beneficiaries for your plan in case you and your
spouse pass away with funds still in your accounts. You might be surprised to learn the ultimate fate of
a retirement savings plan that outlives its owner and his/her spouse. Most retirement plans are income
tax-deferred, meaning you do not pay income tax on the funds contributed or on the growth of the assets
within the fund. However, you are responsible for paying the tax as you take distributions. Wanting to
defer taxes as long as possible, you probably take the minimum required withdrawals for as long as possible.
The result is that you’ve accumulated substantial assets, perhaps in multiple plans, all with the same
taxable fate.
Your beneficiary(ies) are also required to pay income tax when they take
distributions from the retirement plan(s). In addition, no matter if it is an IRA, a 401(k), Keogh, SEP
or other qualified retirement plan, if it outlives you and your spouse, multiple layers of taxation are
possible because the IRS treats this as “income in respect of a decedent (IRD)”. IRD is income you were
entitled to, but didn’t receive, during your lifetime. IRD assets are subject to income and estate tax,
and sometimes generation-skipping taxes too. The most common source of IRD, one that will very likely
compromise a large part of your estate, is your IRA and/or other retirement plan. It will not be a
windfall for the family; it will be a windfall for the IRS.
Did you know that along with your family and friends, you can name a charity
as your beneficiary? With a little planning, you can help your heirs avoid taxes and make a significant
charitable gift to the long-term programs at JFS. You could then leave other non-retirement plan assets
to your family who will never have to pay income tax on the amount donated through your IRA.
It is also possible to reduce income taxes right now, during your lifetime,
by making structured withdrawals from your plan beginning at age 59 ½, or to make outright or life income
gifts at age 70 ½ to JFS. After making the withdrawal and completing the gift, you report the income from
the IRA on your tax return, but also deduct the same amount as a charitable contribution.
Through charitable giving, tzedakah, you can pass along our tradition to
future generations and define your own contribution to repairing and improving the world. Endowments
ensure the continuity of our heritage from generation to generation.
When you are thinking about your estate planning, be sure to consider using
IRA or qualified retirement plan assets for charitable giving. Changing beneficiary(ies) is easy. We ask
that you let us know your intentions to name JFS as a beneficiary of your IRA or qualified retirement
plan so that we can acknowledge your thoughtfulness.
Of course, also consult you legal or tax advisor to ensure that your gift is
part of a coordinated financial plan.
Return to Top
Life Insurance
A donor can make a larger philanthropic gift through life insurance than might
be possible with an outright gift. Affordable premiums can produce a substantial gift providing a source of
future income to JFS. If you are carrying more insurance than your family obligations now require, you
may find a hidden gift asset in a surplus, paid-up policy. Alternatively, you could create a gift for the
future by taking out a new policy on your life and naming JFS as the owner and beneficiary, thus creating
an endowment gift from income rather than capital. We ask that you let us know your intentions to name
JFS as a beneficiary so that we can acknowledge your thoughtfulness.
With this technique, you benefit because:
- A major gift can be made for a few dollars a year
- The entire gift may be tax-deductible when the JFS is the policyholder and beneficiary
- The gift is self-executing and proceeds are paid promptly
JFS benefits because:
- You have provided an assured source of future income
- The amount of the gift is certain
A gift of life insurance may be for you if…
You are maintaining insurance coverage that your family no longer needs.
You are a young donor who wants to create an endowment for JFS from income instead of capital.
You hold few appreciated securities in your portfolio, or few you wish to donate.
Return to Top
Bequests
A bequest may express your special interests, such as to endow a specific
program or service provided by Jewish Family Service. The following suggested language may help you and
your attorney when drawing up a bequest that meets your giving needs. By incorporating language such as
this into your estate plan (Will, Living Trust) or planned gift (Insurance Policy, Retirement Plan), you
ensure that a permanent endowment fund for the benefit of Jewish Family Service will provide for future
generations. We ask that you let us know your intentions to name JFS as a beneficiary so that we can
acknowledge your thoughtfulness.
Specific Bequest - If you intend to make an outright bequest for a
specific purpose, such as to support or to establish a program to meet an existing or future need:
“I give and bequeath (dollar amount or description of asset) to Jewish Family Service of Greater
Harrisburg, Inc. (JFS), a Pennsylvania nonprofit corporation, specifically for addition to or to establish
the (Name of Fund) as an endowment fund.”
Residual Bequest - If you intend to leave the residue portion
of your assets after other terms of your will have been satisfied:
“All the rest, residual and remainder of my Estate, of whatsoever nature and wheresoever situate,
including that over which I have a Power of Attorney, I give, devise, and bequeath to Jewish Family
Service of Greater Harrisburg, Inc. (JFS), a Pennsylvania nonprofit corporation, specifically for addition
to or to establish the (Name of Fund) as an endowment fund.”
Beneficiary Designation - If you intend to name JFS as your
beneficiary for insurance policies and qualified retirement funds:
“Jewish Family Service of Greater Harrisburg, Inc. (JFS), a Pennsylvania nonprofit corporation,
specifically for addition to or to establish the (Name of Fund) as an endowment fund.”
Contingency Bequest - If you wish to make a contingency gift, so
that JFS will receive a portion of your estate if your named beneficiary does not survive you:
"I devise and bequeath the residue of the property, real and personal and wherever situated, owned by me
at my death, to (name of beneficiary), if (she/he) survives me. If (name of beneficiary) does not survive
me, I devise and bequeath my residuary estate to Jewish Family Service of Greater Harrisburg, Inc., (JFS)
a Pennsylvania nonprofit corporation, for its general purposes (or specifically) for addition to or to
establish the (Name of Fund) as an endowment fund.”
Unrestricted Bequest - If you intend to make an outright
bequest of cash, securities, or other property by designating a specific dollar amount, a particular
asset, or a fixed percentage of your estate to JFS to be used for its general purposes:
“I give, devise, and bequeath to Jewish Family Service of Greater Harrisburg, Inc., (JFS), a
Pennsylvania nonprofit corporation, the sum of $_____ (or a description of the specific asset or
proportion of the estate), for the benefit of Jewish Family Service of Greater Harrisburg, Inc. to be used
for general purposes.”
Return to Top
|
