Creating a deferred gift is a great way to make a difference for the future without depleting your assets during your lifetime! In many cases there is no check or credit card needed today. These are the most common ways:
- Bequest in a will
- Make JSDD a beneficiary of an IRA, 401(k), 403(b) or other retirement plan
- Gift of Life Insurance – name JSDD as a beneficiary, or turn over the policy to JSDD
- Gift of cash or appreciated securities intended for the endowment
By far the most common form of deferred giving, an outright charitable bequest is made through terms of a will. It may be either a specified amount, a percentage of a final estate, or the residual of an estate after all other specific bequests have been made.
Retirement Plan or IRA
A donor may designate a charity as a beneficiary of a retirement plan, IRA, or annuity, payable upon death. As a not-for-profit, JSDD would not be subject to income or estate taxes on retirement plan assets, which non-charity heirs (individuals like your children or grandchildren) would be subject to. If you are in the position of having to take Required Minimum Distributions (RMD) from your IRA, you can designate all or part of it as a donation to JSDD’s endowment fund. Since it is being paid to a charity it will not be taxed, making more of your dollars available to do good work.
Life Insurance Policy
A charity may be named as beneficiary on a life insurance policy, or the policy can be signed over to the charity. If not paid up, the donor can make gifts to JSDD with which JSDD will pay the policy.
It is possible to create a legacy gift during your lifetime with a donation to JSDD’s endowment fund of cash, appreciated stock or other marketable securities, or your IRA’s Required Minimum Distribution.
The following ways to give require the services of The Jewish Community Foundation of Greater MetroWest (JCF) or a similar organization.
Charitable Gift Annuity (CGA)
In exchange for a gift to a charity, the charity provides up to two individuals, which may include the donor, with an income for life or lives. The annuity amount is rated based on the age of the donor. At the death of the donor or donors, the remaining funds are available for use by the charity. The Jewish Community Foundation of GMW offers this program for the community.
Charitable Remainder Trust (CRT)
Funds are irrevocably transferred to a trust, which pays an annuity to the donor or other beneficiaries for an agreed-upon term of years or for life. At the conclusion of the term, the trust distributes the remainder to the Charity. Trusts are more commonly used for larger gifts. The Jewish Community Foundation of GMW offers this program for the community.