Charitable Gift Planning Options for Donors
Whatever your goals, interests and circumstances may be, there’s a planned giving option available through The Foundation of the Greater Miami Jewish Federation. We invite you to read below and find out more about them. For more information, call The Foundation office at 786.866.8623. We’re ready to assist you, always in complete confidence and without obligation.
The Greater Miami Jewish Federation is a qualified tax-exempt nonprofit corporation under Section 501(c)(3) of the Internal Revenue Code. Federation’s Tax Identification Number is 59-0624404.
What It Is: A Charitable Bequest is a gift that is contained within a will or trust. Entrusting your hopes for future generations to Federation, it is the embodiment of legacy. You may be recognized for your generosity or your gift may be anonymous. Charitable Bequests are the most traditional form of charitable gift planning.
How It Works: You can elect to provide a bequest to Federation of a specific dollar amount or a specific asset, such as securities or real estate. The charitable bequest can be in the form of a percentage of a donor’s estate or a percentage of the remainder of the estate after payment of all expenses and any other specific amounts bequeathed to other beneficiaries. Charitable Bequests to the Greater Miami Jewish Federation can be made through your will or revocable living trust. You may add a codicil to your will and/or make an amendment to an existing revocable trust. Your estate attorney can best advise you in this regard.
Please see Sample Bequest Language.
- You continue to enjoy the assets during your lifetime
- You may change your estate plan at any time
- Enjoy the satisfaction of knowing during your lifetime that your Jewish legacy will ultimately have a significant impact on the future of Jewish life in our community, in Israel and throughout the world
- You can establish the legacy in your own name or extend recognition to loved ones
- Donor recognition and memorial opportunities are available
- Charitable Bequests are an effective estate planning tool to reduce the taxable estate
- The gift will be professionally managed and securely invested to provide maximum return (Read more)
Is a charitable bequest right for you? Talk with us and consult your tax advisor.
Charitable Life Income Plans
A Charitable Life Income Plan allows you to create a lasting Jewish legacy while income is paid to you or someone you designate during your lifetime. The Foundation offers two options: a Charitable Gift Annuity or a Charitable Remainder Trust.
Charitable Gift Annuity
What It Is: A Charitable Gift Annuity is a contractual agreement between you and the Greater Miami Jewish Federation. An irrevocable gift of cash or marketable securities is made to Federation. In return, the donor receives a guaranteed fixed income for life.
How It Works: An annuity payment is calculated based on the age(s) of the annuitants on the date of the gift and other factors. This income is paid for life, and then the remaining funds become a permanent legacy in your name.
- Guaranteed income for life, for you and/or your spouse or another
- You receive a significant charitable income tax deduction in the year of the gift and favorable tax treatment for the income as it is paid
- You save capital gains taxes by funding Charitable Gift Annuities with gifts of appreciated property
Charitable Remainder Trust
What It Is: A Charitable Remainder Trust also allows you to establish your lasting Jewish legacy while providing income for yourself, your spouse or another beneficiary.
How It Works: Income is provided to you or another you specify for life or for a specified number of years. When the trust ends, the remaining assets are transferred to Federation to fund a permanent endowment in your name.
- You receive a current income tax deduction for a portion of the gift
- You and/or a loved one receive a consistent and predictable income, either for life or a specified number of years
- There are opportunities for diversification of investments and improved rates of return
- You save capital gains taxes by funding the Charitable Remainder Trust with appreciated assets
See how these charitable gift planning vehicles can work for you. Click here to use our interactive online calculator.
Which Charitable Life Income Plan is right for you? Talk with us and consult your tax advisor.
Charitable Lead Trust
What It Is: A trust that allows you to contribute significantly to Federation now, while planning for the future of your family or a loved one.
How It Works: The trust is established and a portion of the trust’s investment yield is contributed to the Greater Miami Jewish Federation. Then, after a specified time or a lifetime, the remainder of the trust is transferred to beneficiaries of the donor’s choosing.
- Reduced capital gains, income or estate tax in variable combinations
- The donor can provide current support to Federation while also making sure loved ones are provided for after his or her lifetime
- The donor can qualify for gift or estate tax savings based on the current value of the income paid to Federation during the trust term
Is a Charitable Lead Trust right for you? Talk with us and consult your tax advisor.
Designation of Qualified Retirement Plans
What It Is: You may wish to designate the Greater Miami Jewish Federation as the beneficiary of all or part of your qualified retirement plan (IRAs, 401Ks, Keogh Plans and others). When children or other heirs are designated as beneficiaries, they may receive only a small fraction of the plan’s value since inherited retirement plan assets are subject to both estate and income tax.
How It Works: You formally change the designated beneficiary for all or a portion of your qualified retirement plan to the Greater Miami Jewish Federation. Upon death, the remaining balance or designated sum transfers directly to Federation free of estate or income tax.
- You create a meaningful legacy at minimum cost
- You enjoy significant estate and income tax savings
- Allows you to transfer other assets to your heirs
- Funding Charitable Remainder Trusts is an option
Is the Designation of a Qualified Retirement Plan right for you? Talk with us and consult your tax advisor.
Gifts of Life Insurance
What It Is: Life Insurance allows you to make a present, rather than future gift that may be much larger than might otherwise be possible. Gifts of insurance are generally very affordable, especially for younger donors. The Foundation has adopted a program designed to promote the use of insurance as a charitable gift planning tool. If you are willing to contribute a policy that meets certain specified criteria, Federation will pay a significant portion of the premium.
How It Works: You name Federation as beneficiary of a new life insurance policy. If the gift is irrevocable and Federation is the owner and beneficiary of the policy, you are entitled to a charitable income tax deduction for all premiums paid. Existing policies without loans outstanding may also be contributed, and you are entitled to a charitable income tax deduction for an amount essentially equivalent to the cash value of the policy.
- Many (especially young people) find that insurance is an ideal way to create an endowment larger than they could otherwise afford
- Premiums paid are tax-deductible
- You can honor or remember a loved one, or create your Jewish legacy in your own name
Is a gift of Life Insurance right for you? Talk with us and consult your tax advisor.
Donor Advised Fund
What It Is: A Foundation Donor Advised Fund (also known as a Philanthropic Fund) is a kind of “charitable bank account” you can establish with as little as $5,000. It allows you to make charitable contributions and realize significant tax advantages, when the time is right for you.
How It Works: Once established, you, your family or anyone you designate may recommend that distributions be made from the fund to Federation and almost any other qualified charitable recipient, Jewish or non-Jewish, local or otherwise, at any time.
- You receive an income tax charitable deduction for any year in which contributions are made to the fund
- You save capital gains taxes by funding the Donor Advised Fund with appreciated assets
- The donor can recommend distributions to any qualified charity
- There is no annual qualifying distribution requirement; no meetings, corporate record-keeping, taxes or tax returns are required
- The Foundation’s charges are minimal
- There is opportunity to involve your entire family
Is a Donor Advised Fund right for you? Talk with us and consult your tax advisor.
What It Is: A Supporting Organization is a separate corporate entity with its own Board of Directors. It must acquire and maintain its own tax-exempt status. Like a Philanthropic Fund, a Supporting Organization allows you to make charitable contributions and realize significant tax advantages, both when the time is right for you. For families or individuals with significant assets, a supporting organization is often an appealing alternative to a private foundation.
How It Works: You fund the Supporting Organization, and name it as well. The organization’s board of directors, the majority of which is appointed by Federation, approves allocations and makes investment and management decisions. You can recommend allocations to specific organizations or fields of interest, both in the Jewish community and the community at large.
- Easier and less time-consuming than a private foundation
- There is an opportunity to involve children and grandchildren in philanthropy
- You receive a charitable income tax deduction for any year in which contributions are made to the organization
- You save capital gains taxes by funding the Supporting Organization with appreciated assets
- The donor can recommend distributions to any qualified charity
- There is no annual qualifying distribution requirement
- The Foundation is responsible for all administration
- The Foundation’s charges are minimal
Is a Supporting Organization right for you? Talk with us and consult your tax advisor.
Designated Endowment Funds
What It Is: A Designated Endowment Fund is established to provide an ongoing source of financial support for any charitable purpose. The purpose can be designated by the donor in consultation with The Foundation or determined by Federation. The fund can be established during the donor’s lifetime or by bequest.
How It Works: Once established, the assets of the Designated Endowment Fund are managed by The Foundation. Every year, a portion of the investment yield is allocated, either in accordance with your designation or at the direction of the Federation Board of Directors, to benefit our Jewish community in Miami, in Israel and around the world.
The Foundation offers two Designated Endowment Fund options that are particularly popular among supporters of the Annual Greater Miami Jewish Federation/UJA Campaign. For those committed to Federation’s Mission, the Permanent Annual Campaign Endowment (PACE) and the Jewish Community Trust Fund provide extraordinary opportunities to help build, shape and sustain the future for our Jewish community.
- The PACE is an opportunity to continue your support of the Annual Federation/UJA Campaign beyond your lifetime. Every year a contribution is automatically made to Federation to support our Jewish community in Miami, in Israel and around the world.
- The Jewish Community Trust Fund is the Greater Miami Jewish Federation’s unrestricted endowment. It provides both current support for Federation’s Mission and gives it the flexibility to respond to unforeseen needs and opportunities.
- You get the satisfaction of knowing that your gift will always be there to help the Jewish community take advantage of any opportunity or meet any challenge it faces in the future
- A gift during your lifetime is tax-deductible in the year it is made
- A gift made as part of your estate plan qualifies for an estate tax deduction
Is a Permanent Annual Campaign Endowment, a gift to the Jewish Community Trust Fund or a Designated Endowment Fund right for you? Talk with us and consult your tax advisor.
For more information, contact us at Foundation@JewishMiami.org or 786.866.8623.