Establishing a Fund
Contributions to the Foundation of the Jewish Federation of New Hampshire can be made today or in
the future. Outright donations of cash, stock, insurance or real estate can be used to establish a
current, named endowment fund. A deferred gift, from which the donor or any other beneficiary receives
income for life, can also be made. A common way to contribute, of course, is through a bequest in a
will and we have established a PACE Program to acknowledge those people who have made such provisions
for the Foundation. The minimum gift, whether current or deferred, today or tomorrow, is $5,000 so as
to encourage every member of the New Hampshire Jewish community to participate with us.
The purpose of an endowment fund can be broad or specific. Donors can support general community
needs, a particular interest or an agency. One of our various fund types — unrestricted, restricted,
or philanthropic — should meet the charitable goals of every member of our Jewish community. All of
our funds are named by the donor and will remain in the New Hampshire Jewish community in perpetuity.
There are several steps to establishing
an Endowment Fund with the Foundation:
- Determine the asset to be donated.
- Decide the timing of the gift — today or tomorrow.
- Identify the appropriate vehicle for making the gift.
- Decide the purpose of the gift.
- Assign a name to the endowment fund.
- Consult with a professional advisor and/or the staff of the Foundation of the Jewish
Federation of New Hampshire.
Determine the asset to be donated
The 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. Some of these assets are more appropriately
used for one kind of gift than another.
Decide the timing of the gift--
Today or Tomorrow
In both cases, the donor leaves a lasting legacy within the Jewish Community of New Hampshire.
TODAY - Current, Outright Gifts
There are three advantages to making an outright gift:
- The community immediately benefits because the Foundation can use the earnings from the
endowment fund as soon as the donation is made.
- The donor receives a federal tax deduction for the full fair market value of the gift
subject to contribution limitations.
- The asset is removed from the donor's taxable estate.
TOMORROW - Future, Deferred Gifts
Several benefits also result from making a deferred gift:
- The donor does not give up use of the asset or income from it during his or
her lifetime or that of another named beneficiary.
- The asset is also removed from the donor's taxable estate.
- The donor often receives a partial tax deduction.
- The community will benefit from a deferred gift some time in the future.
Identify The Appropriate Vehicle for Making the Gift
There are many ways of making a deferred gift to the Foundation;
some assets are more appropriate than others when choosing one of these techniques.
Designating IRAs for Charitable Giving
Retirement assets have recently gained popularity as a mechanism for charitable gift giving.
After applicable estate and income taxes have been imposed, what remains for beneficiaries can
be as little as 25% of every dollar in the plan. Designating a charity as a beneficiary of a
retirement plan is an attractive option because the assets can be preserved and put to good use.
A gift of life insurance designating the Foundation as an irrevocable beneficiary or the owner
and beneficiary of a new or existing policy is an excellent method, especially for younger donors,
for providing a substantial future endowment fund. The cash surrender value of the policy and all
premiums paid from the date of the gift are tax deductible.
Gift of Residence
Current tax laws provide that an individual can donate a home or vacation property and continue
to use it. This is an excellent gift-giving vehicle for reducing the size of a taxable estate.
The donor is responsible for taxes, maintenance and other expenses and may keep any income the
property produces. The donor obtains an income tax deduction at the time that the gift of the
property is made. This deduction is calculated on the value of the appraised property taking
into account the age of the donor and his or her life expectancy. The "life estate"— the ability
to remain in the home notwithstanding the fact that it has been donated to charity — can be given
to a spouse or someone else and the tax deduction is figured accordingly.