Creating an endowment fund with the Jewish Community Foundation, Inc. marks an exciting milestone in many donors' philanthropic journeys, by utilizing a time-tested investment strategy to benefit younger generations. You can endow your giving now to secure the South Jersey Jewish community's future.
Here's how an endowment fund works:
Step 1: Meet with the JCF to discuss your philanthropic interests and develop an endowment fund agreement that will provide guidance on how the fund will operate, including which charitable organization or cause you wish to benefit from the fund. Perhaps you currently support the Jewish Federation of Southern New Jersey's Annual Campaign each year; you may decide that you want your annual gift to continue for after your lifetime.
Step 2: Once the agreement is finalized, money can be donated into your personalized endowment fund account and you or anybody else who contributes to the fund will earn immediate tax benefits. The JCF can accept cash, appreciated assets such as stock, an IRA charitable rollover (or qualified charitable distribution) or other type of donation. You will also have your own online web portal to monitor your fund's balance, contributions, and grants, among other details.
Step 3: The JCF professionally invests the fund principal with our investment manager, SEI. Over time, the fund value can steadily grow from the investments, which include broad-based stocks, bonds, and other assets in the JCF's investment portfolio. (Note that due to the nature of market fluctuations, past results are not indicative of future performance.)
Step 4: Each year, the JCF pays out a percentage of the fund's value-- usually 5%-- to the charitable cause designated in your agreement, in the name of your fund. So, if you contribute $10,000 to a fund that you designated to support the Jewish Federation of Southern New Jersey, for example, the JCF would cut a check of approximately $500 to the Federation annually from your fund. The beneficiary organization can be virtually any 501(c)(3) nonprofit organization, or you can support a cause such as providing scholarship awards to local scholars. This is a great way to carry out your own personal or family legacy, while also ensuring that the charitable beneficiary can count on reliable, steady income annually for future generations.
Ready to endow your giving now?
To learn more or discuss your philanthropic interests and how an endowment fund might be right for you, please contact JCF Assistant Director Mike Staff at 856-673-2528 or mstaff@jfedsnj.org.
Please note that the JCF does not provide estate, financial, legal, or tax advice, please contact your trusted advisor as needed.
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