Planned Giving

Gift Options

News

For Advisors

Welcome! We are pleased that you have interest in learning about the many benefits of gift plans. If you have any questions about the best way for you to benefit through a planned gift, please call. A member of our Planned Giving Team will be very pleased to help you.

Planned Giving helps you meet your personal, financial and estate planning goals by making a lifetime or testamentary charitable gift. Learn about the benefits below.

Thank you for your interest in Jewish Federation of the Lehigh Valley. Our hope is to serve you and your family with helpful information.

We have complete tax update service for CPAs, attorneys, CLUs, CFPs, ChFCs, trust officers and other professional friends. The GiftLaw services are made available to all advisors as a free service. We are available to assist in helping you provide clients with clear and understandable gift illustrations.

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Donor Advised Funds

A Donor Advised Fund can simplify your charitable giving and provide you with significant tax advantages. With a gift of $10,000 or more to Federation in cash, appreciated stocks, real estate or retirement plan assets, you can create a Donor Advised Fund in a name of your choosing. As a fund holder, you can recommend charitable distributions to the qualified Jewish and secular charities of your choice throughout the year, freeing you from year-end deadlines. Until distributions are made, the assets of the Donor Advised Fund grow tax-free. Federation administers the fund, writes all checks for you and makes all distributions in the fund's name and will send you quarterly statements.

ESTABLISHING A DONOR ADVISED FUND

  • A donor advised fund ("fund") can be established with a minimum gift to Federation of $10,000.
  • A simple agreement accompanied by the gift establishes the fund.
  • The application will ask you to designate the name of the fund and the person(s) who can make recommendations for charitable distributions ("fund advisors").

Name of Fund

The donor selects a name for the fund. The fund can be in your name or your family name; it can reflect an area of interest to you, or it can be anonymous. Some examples: "The Joseph Goldman Fund," "Goldman Family Fund," "Goldman Fund for Jewish Education" or "G Tzedakah Fund."

Fund Advisors

The donor designates the individual(s) who will have the right to make recommendations for grants to qualified charities from the fund. This is typically the donor or donor and spouse. Donors may also designate a successor to succeed the initial fund advisor(s) in the event of inability to serve or death. This is typically the donor's child(ren).

A fund ends upon the deaths of all those entitled to make recommendations, or if the donor voluntarily terminates the Donor Advised Fund at an earlier time by recommending distribution of all assets to charity.

In the absence of an accepted written final recommendation from the donor, upon termination of the fund, the balance will be distributed to Federation's unrestricted endowment.

Donor Advised Funds
Stock or Cash
Donor Advised Funds
JFLV

INITIAL CONTRIBUTION

  • Your initial contribution of $10,000 or more can be made by check payable to the Jewish Federation of the Lehigh Valley, or by transfer of publicly traded securities or mutual fund shares.
  • All contributions to the fund are acknowledged with a letter to simplify your tax reporting.
  • Publicly traded securities and mutual fund shares are sold upon receipt by Federation and the net proceeds are added to the fund.
  • Generally, contributions to the fund are fully tax-deductible in the year in which they are made, subject to itemized deduction limitations. Gifts of appreciated securities are deductible at fair market value if the asset was held for more than one year. Donors are encouraged to consult with their legal or tax advisors regarding the tax advantages of charitable giving in their personal situation.

ADDITIONAL CONTRIBUTIONS

  • Additional contributions may be made to the fund at any time. Currently there is no minimum contribution amount.
  • Other individuals can also donate to the fund and obtain their own income tax deductions. For example, a fund holder might ask that no gifts be given but instead contributions be made to his or her fund in honor of a special birthday or anniversary.
  • Donor Advised Funds grow tax-free. The donor has made a completed charitable gift and is therefore not taxed on any income earned in the fund. Federation, as a public charity, does not pay tax on the growth. Thus, the tax-free earnings inure to the fund and the donor may recommend grants from these additional funds.

REMOVING ASSETS FROM A FUND

Once assets are contributed to a fund, the gift is irrevocable and the assets belong to the Jewish Federation of the Lehigh Valley.

USING YOUR DONOR ADVISED FUND

  • Fund advisors submit grant recommendations with the names and addresses of the charities, any special purpose for the grant, and the amounts recommended to be distributed to each charity.
  • Grant recommendations are submitted by e-mail, fax or regular mail at any time.
  • The minimum grant amount from a Donor Advised Fund is $250.
  • Donors will also receive quarterly reports by mail.

APPROVAL OF GRANT RECOMMENDATIONS

IRS regulations require that Donor Advised Funds support the mission of the organization administering the funds. The Federation Board approves all recommendations. There are two major criteria which must be met before a distribution will be made:

  • The distribution must be to a 501(c)(3) public charity approved by the IRS.
  • The function of the charity must be in keeping with the broad purposes of Federation.

Some examples of grant recommendations that may be approved include: recommendations to Federation (either for the annual campaign or other purposes) and to most Jewish and secular local and national charitable, cultural, educational, scientific, medical and religious institutions.

A Donor Advised Fund cannot be used to satisfy an existing obligation, commitment or pledge. Therefore, a donor should not make a pledge to a charity that it wants to support through a Donor Advised Fund. When approached for a pledge to Federation's annual campaign or other charity, make sure to indicate that you are NOT making a pledge, but intend to recommend a grant from your Donor Advised Fund.

A Donor Advised Fund at the Jewish Federation of the Lehigh Valley is a convenient, tax-efficient way to carry out all of your charitable giving. Federation provides all the services needed: investment, record-keeping, research and distributions. A single contribution can be used to recommend many grants to qualified charities throughout the years, freeing you from the pressure of making decisions by year-end deadlines. For more information, please contact Jim Mueth at 610-821-5500 or jim@jflv.org.

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