Temple Endowment Funds
The Temple Beth Shalom community has always responded generously to both
Capital and Annual Giving Campaigns. Capital Campaigns and Annual Giving
Campaigns generate current dollars for renovations, projects and operating
expenses. We hope that many generous Temple members will also consider the
advantages – to the Temple and to themselves – of special gifts. These may
include gifts to one of the Temple Endowment Funds or other major cash gifts.
Whether given to an Endowment Fund or some other Temple fund or arm, special
gifts may also include cash gifts or non-cash gifts structured to achieve
targeted results (often referred to a “planned giving”). Such gifts may be
lifetime gifts or gifts pledged to be made by the donor upon his or her death
(by will, life insurance, retirement plan or otherwise).
Endowment Funds: Temple Beth Shalom has established two
Endowment Funds. These two funds (general and education), are intended to afford
the Temple an enhanced sense of financial freedom, providing opportunities (1)
to offer additional programming without raising annual dues, (2) to more easily
weather any economic downturns or revenue shortfalls, and (3) to take advantage
of unexpected or one-time purchase opportunities.
Giving: There are many vehicles for “planned giving.” These include:
- Bequest (via will or trust): You can name Temple Beth
Shalom in your will (or trust) as a beneficiary for a specified amount or for a
percentage of your estate. Any charitable gift should be eligible for an estate
- Life Insurance Beneficiary Designation: You can name the
Temple as a beneficiary of a specified amount or percentage of the proceeds of
any life insurance you own or control. You may even specify the Temple as a
beneficiary of your group life insurance. Any proceeds will go directly to the
Temple and should provide an estate tax deduction.
- Gift of Life Insurance Policy: You may transfer an existing
life insurance policy to the Temple while you are still alive. The current cash
value of the policy may be a tax-deductible gift based upon the IRS guidelines.
You and the Temple may arrange a program whereby you continue to make
contributions sufficient to pay the ongoing insurance premiums. Any such ongoing
contribution should qualify for an additional income tax deduction. As long as
the policy is maintained, the proceeds will ultimately go to the Temple, free of
- Retirement Plan Beneficiary Designation: As with life
insurance, you can name the Temple as a beneficiary of your retirement plan(s),
including any IRA or qualified plan (such as a pension plan or 401(k)). The
specified amount (or percentage) will be paid directly to the Temple and should
not subject to either income or estate taxes.
- Gifts of Securities: You might find it advantageous to
transfer publicly-traded securities, especially appreciated stocks, directly to
the Temple. You would get a tax deduction for the contribution for the fair
market value of the stock, based upon the IRS guidelines. You would thereby
avoid paying the capital gain tax that you would have incurred had you first
sold the appreciated stock and given the equivalent amount of cash.
- Gifts of Property: There are special rules concerning the
transfer of property (art, real estate, etc.) to a charitable institution,
including certain appraisal and reporting rules. In addition to an outright
gift, you and the Temple, in appropriate circumstances, could consider entering
into a “bargain sale” – that is, a transaction which is part-sale, part-gift.
- Charitable Remainder Trust: A charitable remainder trust
(CRT) is a separate non-taxpaying entity that will convert assets to a specified
income stream payable to you and/or your spouse (or family members) for life or
for a specified term. The income stream may be fixed at the outset or fixed as a
percentage of the annual value of the trust (thus providing you with inflation
protection). When you transfer assets to a CRT, you will also obtain an income
tax deduction. If properly structured, it may serve as a vehicle for gifting one
or more appreciated assets before a sale, permitting you to avoid paying any
direct tax on the gain from the sale. The proceeds are invested by your trustee
to provide the specified cash flow, with an accompanying goal of increasing the
proceeds that ultimately will go to the Temple.
- Charitable Lead Trust: A charitable lead trust (CLT) is
basically the flip of a charitable remainder trust. A CLT distributes a
specified stream to the designated charity (the Temple) for a specific period of
time or the life of the donor (and/or family members). The principal ultimately
reverts back to the donor or family. A gift to a CLT generally is not eligible
for any upfront income tax deduction. However, by the same token, its ongoing
income is no longer taxed to you. Alternatively, you can obtain an upfront
deduction for a gift to a CLT structured as a “grantor trust,” but then the CLT
income would be taxed back to you, without any offset for the trust’s annual
charitable distributions. By using a CLT, you may be able to pass assets to your
family members while being assessed gift or estate tax a fraction of assets’
current values. A CLT therefore may represent a powerful long-term planning
strategy for a family that is in a position to defer the return of a portion of
its wealth, while providing a substantial benefit to the Temple in the meantime.
- Donor Advised Fund: A donor advised fund is established to
collect individual contributions and invest them for the benefit of one or more
charities. Donor advised funds are sponsored both by certain large non-profit
organizations (including Combined Jewish Philanthropies) and certain mutual
funds and brokerage houses. As a donor, you get an upfront tax deduction based
upon the IRS guidelines at the time of the gift to the fund. The funds are
invested and dedicated to eventual distributions to one or charitable
organizations. You (and your family) decide how and when the funds are
distributed. Such a fund therefore bears some resemblance to a private
foundation, but avoids much of the complexity and expense that private
foundations entail. Although the Temple does not administer any donor advised
fund itself, we hope you would consider the Temple when selecting recipients
from any fund you might establish, and we would be happy to work with you in
making any such arrangements.
Legacy Circle: The Temple is creating a “Legacy Circle”
to recognize those individuals who have made a bequest in their will, or made
the Temple a beneficiary of their life insurance or retirement plan. Initially,
the minimum bequest for membership would be $1,000. Our objective is to create a
broad constituency who are committed to providing the long term financial safety
net for the Temple’s continued growth, future options and financial wellbeing.
Lasting Tribute: In any case, you may make any gift
made in memory or in honor of one or more loved ones. Your gift, in that way,
will be a lasting tribute to your loved ones, enduring, in effect, as long as
Further Information: If you would like to
learn more about any of the above planned giving options, please contact any of
the following members of the Endowments, Gifts and Memorials Committee:
Ken Brier, Chair (781-449-5065, email@example.com)
Chudnofsky (781-449-2659, firstname.lastname@example.org)
Ken Davis (781-449-9146,
Ed Ginn (508-653-5327, email@example.com)
Louis Grossman (617-527-9991, firstname.lastname@example.org)
You may also ask your legal or
tax advisor to contact one of these members. If the member you contact is not
able to address your specific issue, he or she may contact another member or put
you in touch with another member. Together, we will try to address any
reasonable question and to be as helpful as possible.
Notice: This information set forth above is provided as aid to persons
considering a possible gift to the Temple. It is intended only as a summary and
not as any definitive legal or tax advice. Though the Temple believes such
information to be accurate, the rules regarding charitable donations are complex
and changing, and special rules may apply in your particular circumstances. You
therefore should not rely on this information to make any final decisions.
Rather, it is essential that you consult with, and rely on, your own legal or
tax advisor. Insofar as any member of the Endowment Committee is acting on
behalf of the Temple with respect to any prospective gift to the Temple, such
member is not authorized to represent you or to provide any formal legal or tax
advice to you.