A legacy plan names the organizations and causes you want to permanently fund.
The principal remains in perpetuity and earns money.
Annual distributions are made to your beneficiary organizations in the form of grants. The amount awarded each year is 4% of the fund’s principal (valued at market value as of December 31 of the preceding year based on a three-year rolling average).
In your legacy plan, you can address concerns regarding the future of your beneficiaries (e.g., What if a beneficiary organization ceases to exist or its mission changes dramatically and is no longer aligned with your vision?).
The Foundation often refers to legacy plans as endowment funds.
A bequest is the act of giving property through a will.
The Foundation can provide sample language for your will or trust to indicate your bequest to the Foundation. It can reference your Agreement with the Foundation and your Declaration of Intent – and then your Declaration of Intent specifies the individual beneficiaries. Therefore, if you want to make alterations to your legacy plan (such as change beneficiaries or advisors), you can do so without making any changes to your will or trust.
No. You may select any non-profit organization which reflects your values and charitable interests. You may also target a field of interest, such as Jewish education or geriatric care.
The beneficiaries must simply be recognized as valid non-profit entities under the requirements of Section 501(c)3 of the Internal Revenue Code. (Note: not all 501(c)(3)s are able to receive tax exempt grants.)
This is your choice. You may fund a specific dollar amount or specify a percentage of your estate.
Percentages work well because you may not know the exact assets that will be available in your estate. You can bequeath a percentage of your estate to the Jewish Community Foundation, and then, in the fund agreement, specify the percentage that each beneficiary will receive. You can also decide to fund some smaller amount now, so you can see the results of your generosity, and fund the remainder through your estate.
Yes. You can name your children as advisors for part or all of your funds. The Foundation encourages this opportunity for a family dialogue about the kind of legacy you want to leave and how your children can help shape it.
The Foundation’s professionals will help you explore the options for intergenerational legacy planning, to find the best solution for you and your family.
No. There are no fees whatsoever until the time of funding. Thereafter an annual fee of 1% or less of the fund’s value is charged on the endowment fund. This is the same or less than other commercial or non-profit institutions. Historically, these professionally invested funds earn well over the 1% fee, so the Foundation fees should not reduce the principal of the funds.
The Foundation’s Investment Committee is a group of volunteers with expertise in finance and investments.
The Foundation’s investment manager, SEI, ensures that funds held at the Foundation are wisely invested for optimum performance over time. SEI is a public company and has been a leader in the investment services industry for over 40 years. SEI is a leading global provider of wealth management solutions including investment services, and administers $609 billion in assets.
To ensure that distributions to your beneficiaries are not dramatically affected by fluctuations in the market, the Foundation Board of Trustees establishes a spending rate, which is evaluated annually. The rate is based, in part, on a three-year rolling average of the Foundation’s investment returns. The Investment Committee has been distributing 5% annually for the last several years.