Donor-Advised Funds
Donor-Advised Funds, offer you an excellent way of implementing your charitable giving plan right now by enabling you to play an active role in meeting the vast array of needs in both the Jewish and general communities. Named for you, your family, or in honor or memory of a loved one, a Donor-Advised Fund gives you the opportunity to make recommendations that grants be distributed to the qualified charities of your choice. A Donor-Advised Fund is easy to open, offers significant financial and tax benefits, and simplifies future giving. A minimum deposit of $2,500 is all that’s required to establish a Donor-Advised Fund with the Houston Jewish Community Foundation; however, you may also establish your fund through a gift of appreciated stock or real estate. Whatever the case may be, your deposit is then invested in accordance with the Foundation’s overall investment plan, and your Donor-Advised Fund is credited with all future earnings and appreciation. As a fundholder, you are sent quarterly statements reflecting the income earned, any distributions made, and the current balance of your Fund. Charitable distributions can be made from both the principal and the earnings of your Donor-Advised Fund. You recommend grants, and the Foundation issues the checks and makes the distribution in your Fund’s name. And since your Fund is a component fund of the Houston Jewish Community Foundation, all deposits made to your Donor-Advised Fund are considered gifts to public charity and qualify for all the favorable tax rules which apply to public charities. To view a fund agreement, click here. Summary of Benefits:
 |
You are eligible to receive an immediate income tax deduction for any contributions you make to your Donor-Advised Fund, regardless of when distributions are made from it. |
|
When you give appreciated long-term capital assets (such as stocks, mutual fund shares, or real estate) to your Fund, you may avoid capital gains tax. |
|
Your Donor-Advised Fund earns investment income and appreciates tax free. |
|
You may make recommendations for grants from both income and principal. |
|
The Foundation takes care of all the paperwork—from administering your Fund, writing the checks, making distributions in your Fund’s name, and providing you with all appropriate documentation in a timely manner. |
|
You have the ability to support the causes that are most important to you—now, and in the future. |
FREQUENTLY ASKED QUESTIONS ABOUT
OUR DONOR-ADVISED FUNDS
How many Donor-Advised Funds are there at the Houston Jewish Community Foundation?
There are over 250 Donor-Advised Funds at the Foundation (as of May 22, 2008).
How many grants are made each year from the various Donor-Advised Funds at the Foundation?
Approximately 2100 grants are made each year from the various funds, with total grants averaging more than $6 million each year.
Are there any limitations on the frequency or size of grants from Donor-Advised Funds?
There is no limitation on the number of grants that can be made from an individual Donor-Advised Fund. Grants must be in the amount of $100 or more (rounded).
What types of causes can be supported through a Donor-Advised Fund?
An extremely wide range of charitable organizations can be supported through a Donor-Advised Fund. Grants may only be made to organizations that have received a 501(c)(3) charitable status from the IRS and fit the guidelines enacted on August 17, 2006. Approximately 40% of the grants made each year are to non-Jewish charities.
How often are grants made from Donor-Advised Funds, and what record is provided regarding these grants?
Grants are made weekly. Grant recommendations received by staff before 5:00 p.m. on Monday via mail, fax, e-mail, or Foundation Central will be processed and mailed to the charity that week. Fundholders receive a copy of the letter sent to the charity. In addition, fundholders also receive a quarterly fund statement recording all activity within the fund, including a list of all gifts to and grants from the fund.
Are there any requirements to make grants from Donor-Advised Funds to the Federation’s United Jewish Campaign or to any other cause?
Fundholders are encouraged to support the Federation’s annual Campaign. However, there is no requirement that grants be made to support this or any other particular charitable cause.
Is there any requirement that a certain amount or a certain percentage of a Donor-Advised Fund be distributed to charitable causes in a given year?
There is no requirement that any amount or any percentage be distributed to charity in a given year (in contrast to Private Foundations which are required to allocate 5% annually). However, many of the Foundation’s Donor-Advised Funds do allocate more than 5% of their value each year.
back to top
Supporting Foundation
A Supporting Foundation is a philanthropic partnership you establish with the Houston Jewish Community Foundation by making a gift of cash, securities, or other property; however, it operates as a separate, non-profit corporation with its own identity and Board of Trustees.
back to top
Charitable Remainder Trust
A Charitable Remainder Trust is a way to create a philanthropic legacy in your name and still receive income from the Trust, either for life, or for a specified number of years. You can establish a Charitable Remainder Trust by transferring assets such as cash, real estate, or securities, either during your lifetime (which affords you immediate tax benefits), or through a provision in your estate plan (which gives you a future estate tax deduction). At the end of the term of the Trust, the remaining assets are transferred into a fund established in your name at the Houston Jewish Community Foundation, who will administer the fund according to your wishes.
There are two types of Charitable Remainder Trusts:
A Charitable Remainder Annuity Trust (CRAT) pays you a fixed percentage of the initial value of your Trust, either for the rest of your life, or for a specified number of years. The annuity payment will always be a fixed percentage of the initial value of the assets transferred to your Trust at the time of the transfer.
A Charitable Remainder Unitrust (CRUT) also provides payments to you or your beneficiaries for as long as you designate; however, the amount of the payment is calculated as a fixed percentage of the current value of the assets of your Trust. Consequently, it can vary from year to year. On the other hand, you can add assets to your CRUT at any time.
back to top
Charitable Lead Trust
A Charitable Lead Trust allows you to meet your philanthropic goals while transferring income-producing assets to your loved ones at a significantly lower gift or estate tax cost. For the term of your Trust, the Houston Jewish Community Foundation and/or other charities of your choice receive the annual payments. Once the term of your Trust comes to an end, the assets are then passed on to your beneficiaries, such as your children or grandchildren.
For more information on the following funding vehicles, please contact the Foundation at (713) 729-7000, or via email at foundation@houstonjewish.org:
| Gifts of Securities | | Gifts of Life Insurance | | Gifts of Real Estate | | Gifts of Retirement Plan Assets | | Gifts of Closely-held Stock | | Bequests | | Perpetuating Your Annual Campaign Gift (PACE/LOJE) |
back to top
back to top
 About the Houston Jewish Community Foundation
Programs and Events
Donor-Advised Funds and Other Charitable Giving Options
Dor L’Dor Society for Legacy Giving
Community Grants and Needs
Foundation Central
|
