Planned Giving

Your legacy gift can be designed to match your personal circumstances and desires.

Your legacy provides:

• Unrestricted funds, giving JFGH the income and flexibility to address issues, unanticipated needs, and opportunities now and in the future.
• Restricted or designated funds, aligning your specific area of interest with an area of need or with a program for people with disabilities that you feel is important.
  Every option provides unique tax and estate planning advantages and is an expression of your lifelong care and involvement and your enduring commitment.

Click on an option below for more information.

Endowment Funds
Charitable Bequest
Charitable Gift Annuity
Charitable Remainder Annuity Trust
Charitable Remainder Unitrust
Charitable Lead Trust
Key Donor Life Insurance Program

For more information, contact Lew, Director of Development at 301-984-3839 or click here.

Endowment Funds
Create a permanent legacy to perpetuate your name or the name of a loved one, while strengthening the future.

At-a-Glance

• Provides annual income for the Jewish Foundation for Group Homes or for specific areas you choose
• Offers tax benefits for you or your estate
• May be created with a variety of assets

When you create an endowment fund, you are establishing a permanent fund in your name or in the name of someone you wish to honor or remember. The fund will be invested in a professionally-managed portfolio. Each year, the distributable portion of the fund will be used to fund important initiatives within the Jewish Foundation for Group Homes, or to support a specific program such as subsidies for residential living or transportation to medical appointments or religious, cultural, recreational or social functions.

An irrevocable gift of cash, securities, or other property can be used to establish a fund in your name. Other assets you may use to create your endowment fund include life insurance, charitable remainder trusts, charitable gift annuities, and retirement accounts (e.g. IRAs). You have the option of establishing an endowment fund either during your lifetime or through your estate plan.

This type of gift offers many benefits. If you give during your lifetime, you will receive a charitable income tax deduction; if you make the gift through your estate plan, your estate receives a deduction. Perhaps most important, however, is the enduring nature of an endowment fund. You may use the fund to honor or remember a loved one, and the fund will perpetuate your family name long beyond your lifetime.

The permanent legacy you create will provide a vital source of support to help meet the current critical needs of the Jewish Foundation for Group Homes. Alternatively, the endowment you establish will provide permanent resources to aid identified programs, projects, or initiatives that are of particular interest to you and your family.

Endowment gifts of $200,000 or more will be recognized in perpetuity in the Jewish Foundation for Group Homes residence or program site of your choice. Endowment gifts of $50,000 and more are recognized in all Jewish Foundation for Group Homes and Jewish Foundation for Group Homes Endowment Corporation publications and publications of Jewish Foundation for Group Homes. Gifts endowing portions of such funds are also welcomed.

Click here to learn more about the Jewish Foundation for Group Homes Endowment.

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Charitable Bequest
Have you considered making a lasting gift to JFGH but are concerned about how to do so?

Do you want to give something back but know you cannot do it now?

Then create a lasting partnership with JFGH to help ensure its future. Your “will” makes it possible.

At-a-Glance

• Provides permanent resources to the Jewish Foundation for Group Homes
• Established in your will or trust
• May be made in any amount — no matter how large or small
• Provides a tax deduction for your estate
• Your name can be permanently memorialized

By including a bequest in your will or trust, your gift will last forever. It creates a permanent legacy for the Jewish Foundation for Group Homes. And your name can be memorialized, forever.

You can specify that an amount, a percent or a specific asset be given through your will or trust. You can choose specific program of JFGH to benefit from your generosity. Or, you can allow the Jewish Foundation for Group Homes Board make decisions about the areas of greatest need.

You may choose to make a gift of cash, securities, or other property — and your estate will receive a tax deduction in the amount of your charitable bequest. If you have already drafted your will, your attorney can help you arrange a charitable bequest with a simple amendment, or codicil. There’s no limit on the amount you may set aside from your estate — you may make a gift as large or as small as you’d like.

How will JFGH handle your gift?

• A permanent fund will be established in your name (or in the name you specify).
• Your gift will be invested with all of our endowment funds, in a professionally managed, well- diversified portfolio.
• Each year, a distribution will be directed to the purpose you specify.
• The distribution is a fixed percentage, currently a rolling three year average of 6%, of the fund. If the earnings are more than 6%, the value in the fund will grow. Programs will receive support upon which they can depend.

What else do I need to know?
Your gift will provide an increasing contribution to help Jewish Foundation for Group Homes. You will have the satisfaction of knowing that you have been able to create a lasting legacy to help those in need, forever.

How Should a Bequest be Worded

“I give and bequeath $__________ (or _____% of my residuary estate) to the Jewish Foundation for Group Homes Endowment Inc. (“the Endowment Fund”), located at 1500 East Jefferson Street, Rockville, MD, (describe bequest).” The EIN is 20-3992763.

General Bequest (Unrestricted)

“This bequest shall be used to create a fund to be known as the (your name(s)) Fund (“the Fund”), from which distributions shall be made annually pursuant to the spending rate of the Endowment Fund as determined by trustees of the Endowment Fund from time to time. Such distributions shall be made at such times, in such amounts, in such ways and for such charitable, educational or religious purposes (or any combination of such purposes) as the trustees of the Endowment Fund shall determine.

Field of Interest (Restricted)

“This bequest shall be used to create a fund to be known as the (your name(s)) Fund (“the Fund”), from which distributions shall be made annually pursuant to the spending rate of the Endowment Fund as determined by trustees of the Endowment Fund from time to time. Such distributions shall be devoted to the support of [name particular Jewish Foundation for Group Homes program or service]. In the unlikely event that, in the judgment of the trustees of the Endowment Fund, such use becomes unnecessary, incapable of fulfillment or inconsistent with the charitable needs of the Jewish Foundation for Group Homes residents, the Fund shall be devoted to the general charitable purposes of the Jewish Foundation for Group Homes

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Charitable Gift Annuity
Enjoy substantial financial benefits. Make an enduring contribution to benefit the Jewish Foundation for Group Homes.

A Charitable Gift Annuity is a unique agreement between you and the Jewish Foundation for Group Homes Endowment Corporation that allows you to do both.

At-a-Glance

• Provides income today for you, you and your spouse, or for a loved one
• Guarantees a reliable, steady stream of income for your lifetime
• Provides potential estate and income tax benefits
• Enables donors younger than 55 to supplement their retirement income
• Defers capital gains tax for gifts of appreciated assets

Are you seeking a guaranteed level of permanent income, something you can rely upon forever? Have you considered making a lasting gift to benefit the Jewish Foundation for Group Homes but were concerned about how to do so? Are you concerned about paying capital gains taxes on appreciated assets if you use them to fund your retirement?

A Charitable Gift Annuity (CGA) serves as an attractive alternative to other investments that currently offer lower yields, while offering several financial and philanthropic benefits. You are guaranteed to receive a specific payment, a portion of which may be free of income tax. Additionally, you will receive a current charitable income tax deduction and a reduction in your taxable estate.

If you decide to use appreciated assets to fund a gift annuity, no capital gains taxes are due when the securities are contributed. Instead, a portion of your income from the annuity will be subject to capital gains tax, which will be paid over your life expectancy. Charitable Gift Annuities tend to pay higher yields (interest rates) than many other investment alternatives.

When the annuity ceases to be paid, the balance of your gift will create a significant benefit for the Jewish Foundation for Group Homes.

Typical Donor Profile

• Needs guaranteed income
• Wants fixed income based on the fair market value of the transferred assets
• Desires to make a “present gift” for estate planning purposes
• May not want to make additional gifts through estate
• Is between the ages of 55 and 95

How Much Would I Receive?

* These rates are for illustration purposes only and are effective as of July 1, 2005. The Jewish Foundation for Group Homes Endowment, Inc. uses the rates for Charitable Gift Annuities as set forth and approved by the American Council on Gift Annuities (ACGA). For more information on the ACGA, visit www.acga-web.org.

How Will The Jewish Foundation for Group Homes Endowment, Inc. Handle Your Gift?

• Your contribution will be invested with all of our funds through the Jewish Foundation for Group Homes Endowment, Inc. in a professionally-managed, well-diversified portfolio.
• You can receive payments monthly, quarterly, semi-annually, or annually. Payments may be made by pre-arranged electronic transfer or can be mailed to you.
• Using the charitable remainder of the Charitable Gift Annuity—the amount remaining when the annuity ceases to be paid—a permanent fund will be established in your name (or in the name you specify).
• Each year, a distribution from the permanent fund will be directed to the purpose you specify. The distribution is a fixed percentage, currently 6%, of the fund. If the earnings are more than 6%, the value in the fund will grow. Programs will receive support on which they can depend.

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Charitable Remainder Annuity Trust
Help ensure the future of the Jewish Foundation for Group Homes.
Receive income for life.

A Charitable Remainder Annuity Trust allows you to do both.

At-a-Glance

• Guarantees a reliable, steady stream of income for your lifetime
• Eliminates initial tax on capital gain for contributed appreciated property
• Provides a current income tax charitable deduction as well as potential estate tax benefits
• Enables you to make a significant contribution to the Jewish Foundation for Group Homes Endowment, Inc.

A Charitable Remainder Annuity Trust (CRAT) provides a way to avoid fluctuations in interest rates and ensures that you or someone you designate receives a fixed income payment for your life or a term of years. You may make a gift of cash, appreciated securities or property to set up the trust, either during your lifetime or through your estate plan.

A CRAT agreement locks in a long-term annuity rate, allowing you or your designated beneficiaries to receive regular annuity payments for a life or joint lives, or for a term of up to 20 years. The rate chosen depends on prevailing market conditions.

Ultimately, what remains in the trust after the annuity ceases to be paid is contributed to the Jewish Foundation for Group Homes, where it is used to meet critical needs or to support a specified program.

If you decide to use appreciated assets to fund a CRAT, no capital gains taxes are due when the securities are contributed. Instead, a portion of your income from the annuity will be subject to capital gains tax, which will be paid over your anticipated lifetime. In addition, you will be entitled to a current income tax charitable deduction based on the present value of the anticipated remainder, which will ultimately be paid to the Jewish Foundation for Group Homes Endowment, Inc.

Typical Donor Profile

• Would like to secure a guaranteed stream of income for himself or his designated beneficiaries
• Wants fixed income based on the original value of the transferred assets
• Does not want to make additional gifts to the trust
• Would like the flexibility of naming multiple beneficiaries to a trust

Other Important Facts About Charitable Remainder Annuity Trusts
In creating a Charitable Remainder Annuity Trust, you may have control over any or all of the following trust provisions:

• Choosing a trustee
• Designating the income beneficiaries (who receives the annual income payment)
• Naming the beneficiary or beneficiaries of the charitable remainder
• Deciding on a payout rate for the trust
• Determining the frequency of the trust payments
• Selecting the terms of the trust

Charitable Remainder Annuity Trusts use a four-tier system in determining the taxation of trust income to annuity beneficiaries. The income to the income beneficiary from the trust is taxed based on the historical pattern of how income in the trust was earned. Income distributions are taxed in the following order:

1. Ordinary income
2. Capital gain income
3. Tax-free income

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Charitable Remainder Unitrust

Leave a lasting gift to the Jewish Foundation for Group Homes. Receive income for life.

A Charitable Remainder Unitrust allows you to do both.

At-A-Glance

• Provides a lifetime annuity
• Eliminates initial tax on capital gain for contributed appreciated property
• Provides current income tax charitable deduction
• Enables you to avoid estate taxes on contributed assets
• Allows you to make a significant contribution to the Jewish Foundation for Group Homes

A Charitable Remainder Unitrust (CRUT) provides a way to obtain a lifetime income, which can grow as the funds invested in the trust grow. The unitrust provides a payment based upon the rate specified in the trust, multiplied by the value of the assets in the trust at the end of each year. If trust assets grow, the increasing value of the trust portfolio will result in larger annual payments.

A gift of cash or appreciated property (e.g., stocks or real estate) is typically used to fund the trust either during a donor’s lifetime or through his or her will. This trust agreement specifies the unitrust rate, the beneficiaries and the term of the trust. A CRUT is frequently funded prior to the sale of a closely-held business in order to minimize taxes.

The term of the CRUT may be defined by one person’s life, joint lives, or a period of time not to exceed 20 years. When you contribute appreciated property to fund the trust, you avoid any initial tax on the capital gain. The contributed property is received by the trust at its fair market value, and the unitrust rate is multiplied by this value to calculate the initial annual payment to the income beneficiaries.

In addition, you are entitled to a current income tax charitable deduction. The current income tax deduction is based on the expected value that the Jewish Foundation for Group Homes will receive when the trust terminates. At the end of the trust term, the Jewish Foundation for Group Homes receives the remaining assets in the trust.

Example
Stock worth $1,000,000, which cost you $200,000, is contributed to a Charitable Remainder Unitrust, which then sells the stock and invests the proceeds. The trust is credited with the full value of the stock on the date of the gift and neither you nor the trust is charged initially with income tax on the capital gain. The trust provides income for life at a unitrust rate of, for example, 7%, providing you with payments of $70,000 the first year ($1,000,000 x 7%).

Thereafter, the value of the securities is established on the last business day of each calendar year, and the unitrust rate is multiplied by this new value to establish the payment for the following year. If, for example, the trust assets had increased in value to $1,500,000, the payment for the year would be $105,000 ($1,500,000 x 7%).

When you receive the payments each year, the income taxes due will be based on the type of income generated in the trust. Income is removed from the trust and taxed in the following order: ordinary income; then capital gain; then tax exempt or other income; and finally return of principal.

It must be noted that in periods of investment loss, the value of the trust may be reduced and the payments to the beneficiary will be lower. Donors preferring a fixed payout can consider a Charitable Gift Annuity, which provides that benefit.

You may serve as your own trustee. Alternatively, the Jewish Foundation for Group Homes Endowment, Inc. can be the trustee of your trust. If the Jewish Foundation for Group Homes Endowment, Inc. is trustee, you are relieved of administrative and investment responsibilities. The Jewish Foundation for Group Homes Endowment, Inc. does not currently charge a separate asset-based fee but does pass on out-of-pocket expenses, such as tax preparation fees, to the trust.

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Charitable Lead Trust
Transfer property to your children or grandchildren while making a significant contribution to the Jewish Foundation for Group Homes.

A Charitable Lead Trust allows you to do both.

At-a-Glance

• Allows transfer of assets to family members with little or no transfer tax
• Growth in value of assets is transferred to heirs with no transfer tax
• Allows transfer of assets to heirs who are minors today

A Charitable Lead Trust (CLT) is an excellent way to transfer property to family members in today’s low interest rate environment. You will also be making valuable contributions to the Jewish Foundation for Group Homes to help with critical needs now, or to support initiatives in the future. You can even use it to make your annual gifts.

A CLT is established for a specific term and accepts an asset that can produce a high stream of income (e.g. real estate). The trust then pays a fixed annual amount to the Jewish Foundation for Group Homes until the end of the term. At the end of the trust term, the assets are transferred to the beneficiary of the trust with no income or estate tax due when the transfer occurs, even if the fair market value is far in excess of the value when originally contributed to the trust.

Any gift or estate tax that might be due as a result of the transfer of the assets to the donor’s next generation is based on the value of the property at the time of contribution to the trust. The income and estate taxes are offset or eliminated by a deduction equal to the value of the annual distribution to the charity over the term of the trust. The payment rate and term of the trust are selected to minimize or eliminate these taxes.

Typical Donor Profile

• Has a moderate to large taxable estate
• Holds assets with the potential for additional growth
• Desires to pass certain assets to heirs who do not need assets or income today
• Has income-producing assets

What Else Do I Need To Know?
Your gift will offer you the satisfaction of supporting both the Jewish Foundation for Group Homes and your loved ones.

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Key Donor Life Insurance Program

Have you considered making a lasting gift to the Jewish Foundation for Group Homes but were concerned about how to do so?

Do you want to give something back to the Jewish Foundation for Group Homes by making an investment now that will grow in the future?

Partner with the Jewish Foundation for Group Homes Endowment, Inc. to create a new life insurance policy and ensure your community’s future.

At-a-Glance

• Provides permanent resources to the Jewish Foundation for Group Homes
• Create a large endowment, even if you do not currently have the funds to do so
• Allows premiums paid to the Jewish Foundation for Group Homes Endowment, Inc. as a tax-deductible charitable donation
• Your name, or the name of a loved one, can be permanently memorialized

What else do I need to know?
The Key Donor Life Insurance Program through the Jewish Foundation for Group Homes Endowment, Inc. is a special program that shares the cost of a new life insurance policy with you. The guidelines for this program, briefly, are as follows:

• You and the Jewish Foundation for Group Homes Endowment, Inc. each pay half of the annual premium cost for four years. Thereafter, policy values pay all future premiums.
• The contract can be individual life or survivorship life
• For policies under $1 million, the proceeds may be designated either to the Jewish Foundation for Group Homes Endowment, Inc.’s general unrestricted fund or to perpetuate your annual gift to the Jewish Foundation for Group Homes.
• For policies in excess of $1 million, you may designate the proceeds to a Jewish Foundation for Group Homes program of your choosing, subject to approval by the Trustees of the Jewish Foundation for Group Homes Endowment, Inc.

If all of the above conditions are met, then the Jewish Foundation for Group Homes Endowment, Inc. will support a portion of the premium for these gifts.

Please note:
The insurance company must be rated A+ by A.M. Best and at least AA by Standard and Poor’s or Moody’s

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