How to Give to the Jewish Foundation of Louisville
Unique lives create unique outlooks when it comes to financial planning for today and tomorrow. There are multiple options available to you and the Jewish Foundation of Louisville is here to help you understand them. Thoughtful planning now can help you provide for yourself, you family and future generations in the Jewish community.
You can contribute cash, stock, appreciated assets, life insurance or retirement plan assets. You can leave a bequest or a charitable trust. Explore them all online or contact the Jewish Foundation of Louisville to discuss the option right for you. Contact Kristy Benefield at kbenefield@jewishlouisville.org or 502-238-2739.
The Jewish Community of Louisville does not provide legal advice. Donors are encouraged to consult their independent tax and legal counsel.
There are many types of charitable trusts available through the Jewish Foundation of Louisville. Our estate planning professionals will work with you and your advisers to find the right solution for your individual situation.
Charitable Remainder Trust
A Charitable Remainder Trust provides a way to obtain an income for life, which can grow as the funds invested in the trust grow. Upon the expiration of the term, the remainder of the trust goes toward a philanthropic purpose established by you at its creation. Your charitable remainder trust can be designed as either an Annuity Trust, with a fixed annual payment to you, or as a Unitrust, in which case you are paid a fixed percentage of the value of the assets.
Donor Benefits
An income stream for life for you, a spouse or someone you designate
An immediate tax deduction at the time the trust is created
Removal of assets from your estate, which may reduce estate taxes
A gift that will benefit the Jewish community in the future
Charitable Lead Trusts
A Charitable Lead Trust is an excellent way to transfer property to family members with significantly reduced gift or estate taxes. A Charitable Lead Trust is established for a specific term by contributing an income generating asset, often real estate. The trust pays a fixed annual amount to a Jewish community until the end of the term. Thereafter, the trust’s principal passes to your heirs or beneficiaries.
Donor Benefits
Reduces taxes that would otherwise be due on assets left to children and grandchildren
Allows donor to make a substantial charitable gift over a period of years until major assets are passed on
No estate tax is paid on the appreciation of assets placed in the trust
By deciding to leave a bequest from your will of a specific amount of cash, a percentage of your estate or the remainder of your estate, you can create a permanent legacy that can help Jews in need forever. There’s no limit on the amount you may set aside from your estate – you make a gift as large or small as you’d like. You may choose to make a gift of cash, securities or other property – and your estate will receive a tax deduction in the amount of your charitable bequest.
Bequests are more important now than ever before
Throughout the past century, the Jewish Foundation of Louisville has worked with donors to build a strong and vibrant Jewish community. Now you can extend your philanthropy to benefit future generations by including a bequest to the Jewish Foundation of Louisville in your will or estate plan.
An unrestricted gift to the Jewish Foundation of Louisville is the best source of funds to meet future emergencies at home and abroad.
Writing a Bequest
It is easy to make a charitable bequest through a provision in one’s will or trust. There are several designations one can make to benefit the Jewish Foundation of Louisville, its affiliates, agencies or beneficiaries. You may leave a bequest of a specific cash amount, a percentage of your estate, or the remainder of your estate.
To make an unrestricted gift:
I give $___________(or specified property or ____% of the residue of my estate) to the Jewish Foundation of Louisville as an unrestricted gift.
To establish a Jewish Federation of Louisville Annual Campaign Endowment
I give $__________ (or specified property or ____% of the residue of my estate) to the Jewish Foundation of Louisville as a Campaign Continuity Fund, the income there-from to be distributed solely on an annual basis to the Federation Annual Campaign.
To establish a Lion of Judah Endowment
I give $___________(or specified property or ____% of the residue of my estate) to the Jewish Federation of Louisville as a Lion of Judah Endowment gift, the income there-from to be distributed solely on an annual basis to the Women’s Division of the Federation Annual Campaign. (Gift must be at least $100,000)
To establish an endowment to benefit a specified area of interest
I give $___________(or specified property or ____% of the residue of my estate) to the Jewish Foundation of Louisville as an Endowment Gift, to be held for the benefit of ______________ (describe a special field of interest).
Marketable Securities (Stock)
A gift of appreciated securities is a popular alternative to a cash gift because it actually saves taxes twice. You receive an income tax deduction for the full fair market value of your securities (if you’ve held them for more than one year) plus you also save the capital gain tax on the appreciation. Appreciated securities can be given as part of an Annual Campaign gift or as a contribution towards an endowment with the Jewish Foundation of Louisville.
One of the most advantageous ways to make a charitable contribution could be the donation of appreciated stock or stock subject to conversion that could avoid capital gains tax. Many of you are currently taking advantage of making your charitable contributions by transferring securities to the Jewish Foundation of Louisville to pay your Campaign pledge. If you are paying with stock, or wish to pay with stock in the future, the following information will help assure the timely execution and proper application of the proceeds.
Methods of Transfer
Journal Entry
If your security is held in a brokerage account where the Foundation has an existing account you may request your broker to make an internal journal entry from your account to the Foundation’s. This is the fastest and easiest method of transferring securities if available unless you prefer to use one of our other brokers to execute the sale. You will need to contact the accounting department at the Foundation 502-459-0660 to determine if a brokerage account exists and to obtain the account number. When instructions are issued to your broker to issue the transfer send a copy of those instructions and a copy of the attached transfer information to the Foundation’s accounting department.
DTC
If your security is held in a brokerage account it may be electronically transferred by DTC from your account to the broker of your choice where the Foundation has an account. The DTC needs to include the Foundation’s correct account name, account number, DTC and the donors name. You may obtain the necessary information from the accounting department at the Jewish Foundation of Louisville 502-459-0660. When instructions are issued to your broker to issue the transfer send a copy of those instructions and a copy of the attached transfer information to the Foundation’s accounting department.
Stock Certificate
A stock certificate in the donors name may be assigned to the Foundation without the donor having the certificate re-issued in Foundation’s name. The stock certificate will need to be signed on the back exactly as it is issued accompanied by a transfer letter requesting the shares be transferred to the Jewish Foundation of Louisville. The letter needs to include the date, number of shares to be transferred, name of the shares, certificate number, and signature. If hand delivered to the Jewish Foundation of Louisville the donor needs to obtain a signed receipt. If the certificate is mailed it should be sent to the Jewish Foundation of Louisville by registered, insured mail.
3600 Dutchmans Lane Louisville, KY 40205. Send a copy of the attached transfer information to the Foundation’s accounting department.
Transfer Agent
If securities or dividend reinvestments are transferred from a donors account to a Jewish Foundation of Louisville account held by the transfer agent it is important to advise accounting at the Jewish Foundation of Louisville in writing immediately upon transfer. It will be necessary to request the agent to issue a transaction advice and a new shareholder form with instructions to sell. When instructions are issued to the transfer agent to execute the transfer send a copy of the instructions and a copy of the attached transfer information to the Jewish Foundation of Louisville’s accounting department.
IMPORTANT: Please notify the Jewish Foundation of Louisville before making your gift of securities. Include the date, stock name, number of shares and cost basis. Without prior notification, stock gifts transferred to the Jewish Foundation of Louisville without the identity of the donor, make it difficult to credit and acknowledge the donor.
Closely Held Securities
Give stock from closely held corporations. Closely held securities can be especially attractive in funding charitable remainder trusts or charitable remainder lead trusts. Special regulations apply to gifts of this kind. Consult your tax adviser and the Jewish Foundation of Louisville when considering such a gift.
Real Estate
Give real estate that has appreciated in value. In most cases, a gift of real estate entitles you to a charitable deduction for the property’s full fair market value.
Real estate can be used to make an outright gift or to make certain types of planned gifts, resulting in a charitable deduction as well as reduced estate taxes. Real estate can be placed in a trust and the proceeds from the sale of the property can provide you with a lifetime stream of income.
Lost Value Securities
Securities that have lost value are not usually considered for gift purposes. Consider selling the security and claim the capital loss deduction while donating the cash proceeds as a gift to the Jewish Foundation of Louisville.
Life insurance can be used to make a charitable gift to the Jewish Foundation of Louisville, permitting you to make a substantial legacy gift for a relatively modest cash outlay. This gift helps take care of the needs of the future. However, your generous Federation Annual Campaign gift is still critical for today.
Life Insurance
There are two ways to use life insurance in your charitable planning.
You can purchase a new life insurance policy and name the Jewish Foundation of Louisville as the irrevocable owner and beneficiary. At the end of your life, the insurance policy benefits are paid to the Foundation to be used in a way you have previously designated as your legacy to the community. You can transfer an existing policy and name the Jewish Foundation of Louisville as the policy’s irrevocable owner and beneficiary. You receive an income tax deduction for the cash value of the policy as well as a deduction for any future premiums paid. The Jewish Foundation of Louisville is assured a guaranteed sum, in cash, at the end of your life.
Donor Benefits
The annual premium payment may be tax deductible if the gift is structured properly. The ability to make a more significant gift than might otherwise be possible. Supporting, in perpetuity, the Jewish community and other programs and institutions that are important to you.
Individual Retirement Accounts (IRAs)
When you name the Jewish Foundation of Louisville as a beneficiary of your Individual Retirement Account (“IRA”), you are leaving a legacy that will secure the future of the Jewish community and may reduce taxes paid by your heirs.
Gifting IRAs Saves Taxes
Currently, retirement plan assets are subject to two taxes payable upon death: income tax and estate tax. This means if your estate is greater than the estate tax exemption amount, currently $2 million, up to 80 percent of your IRA or other retirement plan assets may go to the IRS upon your death.
Through careful planning, there is a way to minimize estate and income taxes on IRAs and other retirement plan assets. You can take control of where your funds will go.
Planning Your IRA legacy
Contact your IRA or plan administrator for a beneficiary designation form and let them know you would like to name the Jewish Foundation of Louisville as a primary beneficiary. The suggested language is as follows:
The ______% beneficiary of my retirement account is the Jewish Foundation of Louisville.
Special note: If the plan holder has a surviving spouse, a written waiver is necessary.
For more information contact Kristy Benefield, 502-238-2739 or kbenefield@jewishlouisville.org.