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A contribution of $2,500
or more in cash or securities establishes a fund
held in an account you name. Any contributions
of securities you’ve held for at least one year
or cash are fully tax-deductible and afforded
the most favorable tax treatment. In addition,
all funds held in the account grow tax-free.
At any time, you may
recommend that grants of $100 or greater be made
from the fund to specific charities you wish to
support, freeing you from the pressure to make
such decisions at the end of each year. Unless
you request anonymity, grant checks are sent
with a transmittal bearing your name.
You may designate your children to make
grants on your behalf, either now or as your
successor(s)—enabling your family’s future
generations to carry on the tradition of charity
you’ve established.
A Donor Advised Fund can provide the
advantages of a private foundation, without
ongoing legal and accounting costs or excise
taxes on investment income. When large
contributions are made, the allowable tax
deductions are greater than those available when
contributions are made to a private foundation.
At-A-Glance
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less burdensome than operating a
private foundation
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may be established with cash or
securities
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can be created with a minimum gift
of $2,500
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allows you to recommend grants to
organizations
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minimum grant requirement $100
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offers considerable tax benefits
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enables continuity through
generations of your family
A bequest to the Houston Jewish
Community Foundation in your will is perhaps the
easiest way to ensure the continuity of your
charitable giving. A specific dollar gift, a
percentage of your estate, or specific asset(s)
can be designated as a general bequest to either
the Houston Jewish Community Foundation or
specifically designated to one of the Jewish
Federation of Greater Houston’s various programs
or endeavors.
Bequests are deducted from the amount of
an estate, which can reduce or eliminate estate
taxes. A charitable bequest allows you to retain
use and control of your assets during your
lifetime. A bequest may also be used to
establish an endowment fund.
A bequest can easily be made by naming
the Houston Jewish Community Foundation as
beneficiary of your will. An outright bequest
may be unrestricted, may add to an existing fund
of the Foundation, or may establish a designated
or restricted fund. If a donor already has a
will in place, a simple codicil can be written.
Examples of Bequest Wording
To the Houston Jewish Community Foundation for
its general purposes:
Will be contributed as a one-time gift to the
General Endowment Fund of the Foundation, which
funds emergencies, innovative programs and pilot
projects.
I bequeath to Houston Jewish Community
Foundation, 5603 S. Brasewood Blvd., Houston, TX
77096 the sum of ___________ dollars
($__________) for its general purposes.
To establish an endowment fund:
I bequeath to Houston Jewish
Community Foundation, 5603 S. Brasewood Blvd.,
Houston, TX 77096 the sum of ___________ dollars
($__________) as an endowment gift, and solely
the income therefrom shall be distributed on an
annual basis in equal portions to the
________________ (example: Annual Campaign of
the Jewish Federation of Greater Houston),
to the _________________ (example: Jewish
Community Center of Houston), and to _________.
A bequest to an established fund
at the Foundation:
I bequeath to Houston Jewish
Community Foundation, 5603 S. Brasewood Blvd.,
Houston, TX 77096 the sum of ___________ dollars
($__________) for the benefit of the
_______________ MEMORIAL ENDOWMENT FUND of the
Houston Jewish Community Foundation with
distributions to be made each year in accordance
with Paragraph ____ of the document establishing
that fund.
If qualified retirement plan assets, IRA
assets, or similar property will be in your
estate, it is wise to include the following
paragraph with the charitable bequest:
The Executor shall first use any
property, which if received by my estate would
constitute income in respect of a decedent for
federal income tax purposes, in satisfying this
bequest to the Houston Jewish Community
Foundation.
We are excited about the IRA Charitable Rollover….. and you should be, too!
The Houston Jewish Community Foundation can help turn your individual retirement accounts (IRAs) into gifts to your favorite charities. The IRA Charitable Rollover allows you to experience the joy of giving during your lifetime. Take advantage of this opportunity every year to bring life changing programs and services to Houston, Israel, and around the world.
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Satisfy your required minimum distribution (RMD) for the year.
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Avoid taxes on IRA transfers to the Foundation
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Join others and learn how to support your favorite charities in a unique way through a designated fund (donor advised funds prohibited per IRS guidelines).
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If you are considering an IRA Charitable Rollover gift of up to $100,000 and are 701/2 or older, we would be happy to give you additional information.
An endowed gift to the Houston Jewish
Community Foundation has the power to endure.
Your endowment fund will continue to make an
annual gift to your favorite Jewish causes,
preserving your memory and sustaining our
community for generations to come.
Your annual gift alone cannot secure the
future of the Houston Jewish Community
Foundation. Your endowment fund can.
An endowment is a permanent restricted
fund dedicated to endowing your annual gift to
your favorite organizations. An endowment fund
is not intended to substitute for any part of
your annual gift—it is, instead, a lasting
legacy for the future.
Endowments can be created through a
variety of vehicles, some of which do not
necessitate funding during your lifetime, yet
still provide your estate with considerable tax
benefits.
To calculate the amount needed to create
your endowment, simply multiply your current
annual gift by twenty. You can also endow a
portion of your gift by establishing a fund with
a lesser amount and building the fund through
subsequent contributions.
Frequently Used
Vehicles to Fund an Endowment
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less burdensome than operating a
private foundation
-
may be established with cash or
securities
-
can be created with a minimum gift
of $2,500
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allows you to recommend grants to
organizations
-
minimum grant requirement $100
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offers considerable tax benefits
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enables continuity through
generations of your family
Leverage the value of property while
securing the future of the Jewish Community.
Your charitable future may be in your possession
right now.
A donation of real estate allows you to
achieve your charitable goals and provides you
with the maximum benefits allowed by law. The
retained right of use of the property can be for
the lifetimes of the contributor and a surviving
beneficiary, and it does not need to be the
primary residence (it can be a second or
vacation home).
Gifts of real estate allow you to bypass
capital gains taxes, preserving 100% of your
real estate’s current value. In addition, you
receive a charitable income tax deduction equal
to the fair marketing value of the land to
offset other tax liabilities.
Types of real estate you can give:
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A house or condominium
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An apartment building
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Undeveloped land
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A shopping center
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A vacation home
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A commercial or industrial building
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An undivided interest in real estate
Supporting foundations, also known as
supporting organizations, are special entities
that are similar to private foundations, but
have the investment and tax advantages of public
charities.
They are separate, not-for-profit
corporations that support the mission of the
Jewish Federation of Greater Houston. The
Federation handles all bookkeeping and record
maintenance for these foundations, however, the
assets of the supporting foundation may be
manages by outside investment experts of your
choice and don’t have to be commingled with
Foundation assets, as is the case with donor
advised funds.
Unlike private foundations, which have
strict limitations on tax deductions, supporting
foundation contributions are subject to public
charity deduction limitations.
Donors may donate closely held stock and
may deduct up to 50% of adjusted gross income
for gifts of cash and up to 30% of adjusted
gross income for appreciated property. In
addition, gifts of appreciated securities are
deductible at their full fair market value.
Also, unlike private foundations, there is no
excise tax on net investment income. Supporting
foundations are also not subject to the
restrictions on investments and minimum
distribution requirements of private
foundations.
Family members can be appointed to the
Board of Trustees of the supporting foundation,
and can be involved in recommending and
approving charitable distributions. A supporting
foundation is an excellent method if involving
loved ones in a charitable endeavor.
At-A-Glance
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the supporting organization is
classified as a public charity, meaning
donors receive the most favorable tax
treatment for contributions
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a private foundation is subject to
numerous IRS code restrictions and
prohibitions which do not apply to
supporting organizations
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a private foundation pays up to 2%
income tax on its investment income; a
supporting organization pays no income tax
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a private foundation is required to
distribute at least 5% of its assets each
year, whereas no specified percentage
distributions are required of a supporting
foundation
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the donor chooses the name of the
supporting foundation, and can, if desired,
achieve the same name recognition in the
community he or she would receive with a
private foundation by including the family
name in the name of the foundation
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the donor will have the opportunity
to include younger generations in their
philanthropic traditions
The Houston Jewish Community Foundation
is here to help you accomplish the mission and
goals of your foundation. We are here to join
your team and take care of the tedious office
work for you, so you have more time to focus on
what’s most important—philanthropy.
We treat each client as an individual
and look forward to putting together a solution
that will save you time and increase your
efficiency.
Our standard services include:
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Review of grant requests and
verification of each organization’s
tax-exempt status with preparation of grant
checks and cover letters
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Management of your assets, either
with another fund advisor or in conjunction
with placing assets within the Foundation
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Quarterly reports on income, gains,
losses, and investment performance. This
report may be used by your CPA or
professional tax advisor to prepare the Form
990 PF.
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Full administrative and
record-keeping services that will distribute
your assets to you based upon your
distribution policy and record you incoming
additions and outgoing grants.
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24/7 access to your fund balances
via our “Foundation Central” website, which
has SSL encryption
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Professional and experienced
leadership team to proved excellence in
customer service and financial accounting.
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At your request, we will coordinate
Board meetings, distribute agendas, grant
summaries, and prepare meeting minutes.
Fore more information about our services
for private foundations, please contact Roberta
Herman at (346) 699-HJCF (4523) or
rherman-dietrich@hjcf.org.
Disclaimer:
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.
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