FUND A LEGACY GIFT NOW

Instead of cash, you can use appreciated stocks, bonds or mutual funds shares you have held “long-term” (more than a year) as an advantageous way to fund your legacy gift.

Because of the appreciation factor, gifts of securities cost less than equivalent gifts made in cash as no taxes are paid on the long-term gain. If you otherwise sold the stock and then donated the cash proceeds to the charity, you would be giving less in after tax dollars.

You can designate a nonprofit, program or cause to fund now and see the impact of your legacy gift during your lifetime.

What are the benefits

• You may be able to claim a federal income tax deduction for the fully appreciated value of the securities (up to 30% of your adjusted gross income – “AGI”).
• You will not pay capital gains tax on the transaction.
• The after-tax cost is less than a gift of cash and the charity will receive 100% of the value of the securities contributed.

If you are required to receive annual “minimum required distributions” from an IRA, you can direct these distributions, tax-free, to make annual gifts or to fund a legacy gift.

To make this “Qualified Charitable Distribution,” instruct your IRA administrator to make the distribution, in the amount you choose (up to $100,000 annually), directly to your organization of choice, instead of distributing that amount to you. If you would like this gift to be applied to the organization’s endowment fund, you will need to add a note or cover letter explaining your intent. Any gift placed in an organization’s endowment fund is considered a legacy gift.

What are the benefits

• Regardless of whether or not you itemize, a “Qualified Charitable Distribution” from your IRA is not considered taxable income and therefore is not included in your adjusted gross income. This can also potentially lower Medicare premiums and taxation on Social Security income.
• It enables you to fulfill your required minimum distribution and use the proceeds to make tax-free gifts to charities.
• You can designate your contribution to make a current gift or begin funding your legacy gift.

It could be that you have recently sold your business, personal or commercial real estate, come into an inheritance or simply accumulated excess cash holdings.

Making a gift in this way will support the community and could save your taxes.

What are the benefits

• With a gift of this cash, you may be able to deduct up to 60% of your adjusted gross income (AGI) from your Federal taxes due, while a gift of securities is limited to only 30% of your AGI.
• You can designate an organization or program and see the impact of your legacy gift during your lifetime.

What is a gift annuity? A charitable gift annuity is a contract between a donor and a charity (not a "trust"), under which the charity, in return for a transfer of cash, marketable securities, or other assets, agrees to pay a fixed amount of money each year to one or two individuals, for their lifetimes.

Charitable remainder trust

A charitable remainder trust allows you to create a legacy and receive income for life or for a specified number of years. Upon expiration of that term, the remainder goes to the Jewish organization you choose as a permanent endowment. 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. All trusts must be established with the help of an attorney.

Charitable lead trust

A charitable lead trust is both an income and wealth transfer vehicle, enabling you to transfer income producing assets to the next generation at a significantly lower tax cost while meeting your philanthropic objectives. All trusts must be established with the help of an attorney.