Life Income Plans

A life income plan is a desirable way to benefit from a charitable tax saving, increase your income, and support the Jewish community.

Choose from three types of plans:

  • Charitable Remainder Trust
  • Charitable Gift Annuity
  • Pooled Income Fund

Charitable Remainder Trust

A charitable remainder trust is an estate planning tool that gives you income for life or a term of years and creates a gift of the remainder to the Federation's Endowment upon termination of trust. Assets that have substantially appreciated in value, but are providing a low return are well suited as gifts. You may avoid capital gains taxes, lower your income taxes, and earn higher returns with a charitable remainder trust.

Advantages:

  • Annual income, often for donor and spouse.
  • Income tax deduction at the time the trust is created.
  • Estate and gift tax savings when created testamentary.
  • May establish with cash, securities, and certain real estate.
  • Favorable capital gains treatment.
  • An IRA or other retirement plan assets may be used to fund a testamentary charitable remainder trust for the benefit of family members after the donor’s lifetime.
  • Qualifies donor for membership in the Living Legacy Society and to inscribe a personal message in the Book of Life.
  • After the donor or donor designee’s lifetime, the remainder interest in the trust will be placed in our unrestricted endowment, or another restricted endowed fund chosen by the donor, and will be a legacy to ensure the continuity of generations to come.

Best assets:

  • Appreciated, low-yielding securities
  • Real estate
  • Cash
  • IRA and other retirement plan assets (to create testamentary trusts)

Charitable Gift Annuity

In exchange for your gift to the Jewish Community Federation and  Endowment Fund, we commit to pay you (and up to one additional beneficiary) fixed income for life to help support yourself, spouse, partner, parent, or other loved one during retirement.

Other benefits to you may include:

  • An income tax deduction at the time the gift is made.
  • Partially tax-free payments.
  • Favorable treatment of capital gains for gifts of appreciated assets (such as marketable securities and certain real estate).

Sample Charitable Gift Annuity Rates for a Single Life Immediate Annuity

     Age
     90+
     75
     65

Current Annuity Rates
9.0
5.8
4.7

 

Pooled Income Fund

Donor assets are pooled with other gifts, similar to the structure of a mutual fund. In exchange for a charitable gift, the donor or designee receives income payments based on the rate of return for a common fund. A pooled income fund allows you to make a gift now, gain an immediate tax deduction, and generate income for life with a simple gift of cash or securities to the Jewish Community Endowment Fund.

Advantages:

  • Established with a minimum of $5,000 in assets.
  • May make additional contributions on a regular basis and receive an income tax deduction at the time each gift is made to the fund.
  • Pays immediate income to the donor or donor’s designee for life.
  • Can avoid capital gains tax on appreciated assets.
  • Qualifies donor for membership in the Living Legacy Society and to inscribe a personal message in the Book of Life.

After the donor or donor designee’s lifetime, the remainder interest in the fund will be transferred to our unrestricted endowment and will be a legacy to ensure the continuity of generations to come

Best Assets:

  • Cash
  • Stocks and other securities

Permanent Legacy

After payments are made for one or two lives, the remainder of your gift serves as your permanent legacy, which will help ensure the continuity of Jewish life for generations to come through the Endowment Fund’s innovative grantmaking. (It's up to you whether you want to vary the legacy message with each gift or keep it consistent.)

As with all planned gifts, prospective donors are encouraged to seek the advice of their professional advisors. The California Insurance Guaranty Association does not guarantee payments of annuities; however, payments are backed by the assets of the Federation.

For more information, please contact:
Joy Sisisky
Chief Philanthropy Officer
415.512.6428