JEWISH EDUCATION TRUST INITIATIVE
Everyone knows that tuition is not tax deductible. But here’s a program that enables substantial funding of a family’s tuition costs while simultaneously providing substantial tax deductions. Read "how the program works," then ask your own CPA or attorney to verify it.
The children of today are the leaders of tomorrow. Quality Jewish Day School education, Israel experience programs, Jewish summer camping, and other Jewish educational experiences pass on our rich heritage of ethical and cultural values to future generations and ensure the continuity of the Dallas Jewish community. Every Jewish child ought to have the opportunity to participate in Jewish educational experiences.
Although Jewish education is critical to strengthening Jewish identity, for many families, the increasing costs of Jewish educational experiences can be a hardship. Scholarship assistance is widely needed.
In partnership with the Jewish Day Schools of Dallas, The Dallas Jewish Community Foundation is introducing a tax-advantaged program that helps grandparents and other family members support a child’s day school education and other substantive Jewish educational experiences. Concurrently, it also enables the family to make a significant donation to the scholarship needs of others, once their own child’s education is complete.
FINANCIAL INCENTIVES
Annual payouts can cover the majority of a child’s annual tuition payments
Income tax charitable deductions
Ability to transfer appreciated assets, such as securities or real estate,into a special trust earmarked for the child’s Jewish education
Exemption from capital gains tax when property is transferred
Avoidance of estate taxes on contributed assets
HOW THE PROGRAM WORKS
Grandparents or other family members contribute a predetermined annual amount to a charitable remainder trust at DJCF, beginning at the child’s birth (or soon afterwards) and continuing until the child enters school. There is a substantial tax deduction for these amounts when the trust is funded.
Beginning with the child’s entry into school, the child or his/her parents receives income earned by the trust. This income will be used towards the child’s tuition or other Jewish educational programs.
The trust continues to pay the student income, to be used for tuition, or for Jewish educational experiences, through high school.
When the child finishes school or reaches age eighteen, the trust terminates. The remaining principal becomes an Endowment Fund at the Dallas Jewish Community Foundation to support Jewish Day School education in Dallas. These endowment funds will thus ultimately help other students in the community with financial needs.