Skip Navigation LinksHome > Jewish Community Foundation > Creating an endowment to last beyond your lifetime

Creating an endowment to last beyond your lifetime

Vehicle Description Tax Treatment Comments
Bequest A gift detailed in your will that benefits the charity of your choice after you pass away. Removes assets from your taxable estate. Does not impact donor’s current cash flow.
Insurance Policy May be taken out on the life
of the donor and/or the donor’s spouse (“second to die”).		 Premiums are tax-deductible. Charity is the owner of the policy and pays no taxes when the policy matures. An inexpensive way to make a donation, as out-of-pocket costs are the premiums only.
Designation of an IRA Donor names the charity as a beneficiary of his IRA for a specific percentage or monetary amount. Whereas a family member other than a spouse pays ordinary income tax when cashing an inherited IRA, in addition to any estate taxes due, a charity pays no tax. Probably the least expensive way to make a donation. Amount family members would have inherited may be replaced with an insurance policy.
Charitable Gift Annuity Cash or property is gifted to a charity in return for charity’s promise of fixed payments for the life of the donor or named beneficiary(ies). Immediate tax deduction based on IRS formula; a portion of income received is also tax-free. Deferral of capital gains tax. Excellent for donors who need current income from their assets. Fixed rates up to 11.3%.
Charitable Remainder Trust Cash or property is transferred to a trust. Donor(s) and/or beneficiaries receive income from the trust for life or a determined period of time. Remaining principal benefits
the charity.		 Like a Charitable Gift Annuity, deferral of capital gains tax on donated assets. Income tax deduction for gift based upon present value of the remainder interest in the trust. Amount of income can vary or be determined at inception.

Creating an endowment is easy. For a personal consultation about the method best for you, contact the Jewish Community Foundation at (973) 929-3060 or .