I want to do something to help my favorite charity but I don’t have immediate cash to make a gift today. What can I do?

Leave Tampa Orlando Pinellas (TOP) Jewish Foundation, Inc. in your will. Bequests are the simplist form of giving that allows you to retain use and control over the asset during your lifetime. A gift of this nature also decreases estate taxes and avoids probate on the gifted asset. Leaving the Foundation in your will creates an endowment or a fund that generates annual income. The income is what will provide an annual gift to support your favorite charitable institution.

A sample codicil could include:

“I leave $-- or --% of the residue of my estate to Tampa Orlando Pinellas Jewish Foundation, Inc. to create an endowment fund to be known as (donor name) Endowment Fund benefiting (your charity name) with income from the endowment to be used for (list purpose). The principal of the endowment shall never be invaded.”

I want to support my favorite charity but also earn some income for myself. Is there something available?

Yes. You could create a charitable gift annuity through the Foundation. A charitable gift annuity provides a fixed stream of income during life that is partially tax-free for either yourself or a loved one. The remainder of the gift not used to provide life income will go to create an endowment to support your favorite charity. An endowment is a fund that generates annual income. The income is what could provide an annual gift to support your charity.

You could also create a charitable remainder trust. This too will provide a fixed income to you or your loved one. Annual payments may not be less than 5% of the initial value of the assets placed in the trust. The remaining amount in the trust will be used to create an endowment benefiting you favorite charitable institution.

Still another option is a charitable unitrust. Here the annual income you or your loved one receives is calculated annually as a percentage, not less than 5%, of the value of the trust assets. Therefore, the annual payment paid by the trust to you fluctuates from year to year. Again, the remaining amount in the trust will be used to create an endowment benefiting your charity of choice.

I knew someone who contributed every year and when he passed away his estate left several hundred thousand dollars to charity. My friend was not rich. How did he do this and how can I do the same thing to benefit my charity?

Your friend might have purchased a life insurance policy and named the Foundation the owner and beneficiary of the policy. Here’s how it works.

You purchase a life insurance policy and name the Foundation owner and beneficiary. The premium payments you pay are tax deductible. When you die the policy pays off and the dollars go to the Foundation creating an endowment in your name to benefit the charitable organization of choice. An endowment is a fund that generates annual income. The income is what will provide an annual gift to support your favorite charity.

The same thing can be accomplished through an existing life insurance policy. The policy is donated to the Foundation who is made owner and beneficiary. The cash value of the policy is tax deductible in the year you donate and all subsequent premium payments will provide an additional tax deduction.

What are the tax benefits of establishing a Philanthropic Fund?

You get a deduction at the time you contribute funds to establish or replenish a philanthropic fund. You receive a charitable deduction for the full amount of your contribution to your fund and no capital gain is paid on any increase in the appreciation the fund may receive. If you use appreciated assets to establish or replenish your fund you can avoid the capital gains involved.

May anyone else make gifts to my fund?

Yes, anyone may make a gift to your philanthropic fund. The gift should be made to the Foundation for the benefit of your philanthropic fund.

How do I contact the Foundation?