Frequently Asked Questions about the JCFW
What does the Jewish Community Foundation of the West do?
We create and manage permanent funds that provide recurring financial support for charitable organizations and causes, within our community and worldwide.
My family gives to many charities; however, I think I'm too young to start a donor fund at the JCWF. What value would a donor fund offer us?
You can benefit from a donor fund in two ways:
- Funding annual giving with appreciated securities or other assets through a Foundation fund not only allows you to avoid capital gains taxes, it minimizes transaction costs to the recipient charities. For example, if you donate $200 in appreciated stock to each of five different charities, each charity will incur a charge to sell its shares. Even under the best assumptions, those charges will amount to at least 5% of the $1,000 original gift, or $50, that does not get to the charity. With a donor fund through the Foundation, costs on a $1,000 transaction amount to less than 1% of the proceeds. We write a check to each charity that they can deposit directly into their account. There are no other fees or charges
- Using a donor fund allows you to budget and control your charitible giving. Budget and transfer assets into your fund once each year. Then direct the Foundation to make your gifts as necessary. You'll receive a confirmation letter for each grant you make from your fund and a quarterly statement that summarizes your fund balance.
Most donor funds are free of any charges. No fees of any kind.
I like the investments in our family stock account and don't really want to sell any of them to support our charitable giving. I'd rather just continue to write checks each year. How could the Foundation benefit me?
Transfer appreciated stocks or bonds to the Foundation, then repurchase the same securities into your account. You get a tax deduction for the market value of your gift and avoid capital gains tax on the appreciation. Since your gift to the Foundation is a transfer and not a sale, the repurchase is not covered by the 30-day wash rule. Replacing the securities in your family stock account raises the basis of your portfolio, which will further reduce your future capital gains liability.
You wind up with the same stock portfolio, the same gift value to your favorite charities, but you get a larger current tax deduction and a smaller future tax liability.
Our family would like to start a permanent fund to honor our parents; however, we don't have a lot of money. What options does the Foundation offer?
The Foundation generally requires a minimum of $10,000 deposit to create an endowment fund. Exceptions can be made for donors that commit to building the fund in future years. Starting with only $5,000 and depositing $2,000 in additional contributions each year will in ten years produce an endowment worth around $40,000.
We would like to donate to our favorite charities, but we don't really have any discretionary income. What other options do you have?
There are several ways to support your favorite charities without giving up current income or dipping into savings. Examples include:
- Donate a paid up life insurance policy directly to your favoirte charity or donate it to the Foundation on behalf of your favorite charities.
- Create a bequest by naming the Foundation as a benficiary of a percent of an existing life insurance policy or percent of your estate.
You can instruct the Foundation to distribute the proceeds or create a permanent endowment fund to benefit one of more of your favorite charities. Contact us for more ideas.
