Incorporate Philanthropy into Major Decisions with DJCF’s Planned Giving Options
Some of the greatest opportunities to make significant charitable contributions occur while people are making other major business, personal and financial decisions. Such “planned giving” or “deferred giving” can be executed, for example, when a donor writes or revises a will, or creates a charitable trust. In each of these situations, planned giving represents an opportunity to include a philanthropic legacy in the plan for achieving business or personal goals.
DJCF has a team ready to collaborate with donors and their tax and legal advisors to create a legacy using wills and living trusts, endowments, scholarships, retirement plan gifts, charitable remainder trusts, charitable lead trusts, charitable gift annuities and more.
Creating A Legacy with DJCF
Bequests
A simple and flexible way to sustain our work from generation to generation is a gift made through your will or trust. It is one of the most popular and flexible ways that you can support charitable institutions.
A bequest is one of the easiest gifts to make. With the help of a DJCF advisor, you can include language in your will or trust specifying a gift be made to family, friends or to charity as part of your estate plan.
- Many times, bequests are the largest gift an individual has the capacity to make for benefit of the causes they care about most.
- Your estate, or your beneficiaries, may receive tax savings
- You can include language in your will or trust specifying a gift be made to family, friends or to charity as part of your estate plan. DJCF can recommend specific language for your advisors to incorporate.
- A bequest can be made in several ways:
- You can gift a specific dollar amount or asset
- You can gift a percentage of your estate
- You can gift from the balance or residue of your estate
- You can make a beneficiary designation of certain assets
Endowments
- An individual endowment at DJCF can be created with a minimum of $25,000. You can identify one or multiple nonprofit organizations to be the beneficiaries of your generosity. Beneficiary organizations will receive annual distributions based on a spending policy, and the endowment funds are managed with a perpetual time horizon for investment.
- What are the benefits of an endowment?
- Your annual contributions for benefit of a nonprofit are sustained in perpetuity, stewarded and administered by the Dallas Jewish Community Foundation
- Unlike a bequest, you do not need to update your will or estate plan when your philanthropic priorities change. An amendment to an endowment can be made at any time, at no additional cost.
- How do I create an endowment for benefit of one or multiple nonprofit agencies?
Complete An Endowment Profile Form - An endowment can be funded in legacy or during your lifetime. To learn more about the types of assets the foundation will accept, please see our gift acceptance policy
Gift Acceptance Policy
Life Insurance
Life insurance is often used to provide financial security for loved ones, but it can also support charitable causes. Donating a policy or naming a charity as a beneficiary allows individuals to leave a lasting impact while potentially gaining financial benefits.
- What are the benefits?
The tax implications of donating a life insurance policy depend on whether ownership is transferred.- If a policy is irrevocably assigned to a charity, the donor may qualify for a charitable income tax deduction based on the policy’s fair market value or the total premiums paid, whichever is lower.
- If the policy remains active and premiums are still due, additional deductions may be available for payments the donor continues to make.
- Naming charity as beneficiary while retaining ownership does not provide an immediate deduction. The tax benefit will apply to the estate, as the death benefit is excluded from the taxable estate if the charity is the sole recipient. However, exceptions may apply.
- How do I donate an insurance policy for benefit of one or multiple nonprofit agenciesOnce the policy is confirmed as eligible for contribution, the donor completes a transfer of ownership form from the insurance company. This legally assigns all rights and control of the policy to the charity, meaning the donor can no longer make changes, borrow against the policy or cancel it. The insurer may require written acknowledgement from the charity confirming acceptance.
- If premiums are still due, the donor must arrange for payment. Donor Advised Funds can be used to cover the costs of premiums. If there are not sufficient funds available, the donor can either pay the premium directly, or the charity may elect to surrender the policy for cash value.
- Ways to name a charity:1.) Instead of transferring ownership, a donor can designate an endowment at DJCF as beneficiary, allowing them to retain control while ensuring the organization receives the proceeds upon their passing.2.) Primary vs. Contingent beneficiary – a primary beneficiary means the endowment fund will receive the full death benefit. An endowment can also serve as contingent beneficiary, meaning it will receive the death benefit only if the primary beneficiary – typically a spouse or family member – predeceases the policyholder or cannot accept the funds. This allows donors to prioritize loved ones while ensuring a charitable contribution if circumstances change.
Charitable Gift Annuities
DJCF is proud to partner with the National Gift Annuity Foundation for administration of our charitable gift annuity program. Please visit their website to learn more. The remainder benefits from annuities created with the National Gift Annuity Foundation are typically directed to an endowment fund at DJCF in your memory.
- BENEFITS OF A CHARITABLE GIFT ANNUITY
- Receive fixed payments to you or another annuitant you designate for life
- Receive a charitable income tax deduction for the charitable gift portion of the annuity
- Benefit from payments that may be partially tax-free
- Further the charitable work of a nonprofit with the remainder interest.
