Gifts of personal property may include any form of tangible property including art, books, jewelry, coins, antiques, and other valuable objects.

Generally, if the property is used directly by the Columbus Jewish Foundation for its charitable purposes, the full fair market value of the property is deductible. Gifts of property that are unrelated to the Foundation’s tax-exempt purposes may qualify for a limited charitable tax deduction. In any event, gifts of property are not subject to a tax on the unrealized capital gain and may be used to fund a Charitable Remainder Trust.

Gifts of closely held stock can be particularly advantageous for those who own stock in closely held corporations.

A transfer of closely held stock to the Columbus Jewish Foundation generates an income-tax charitable deduction for the appraised fair market value of that stock. The corporation may thereafter purchase and redeem the stock from the Foundation, thereby converting the stock into cash for the Foundation’s charitable purposes.

When the corporation purchases and retires the donated stock, the cash used is usually not taxable to the donor as a dividend or other income. Charitable Remainder Trusts may be funded with closely held stock, providing lifetime income to the donor from what was previously an unproductive asset.

The procedure for transferring gifts of stock from your brokerage account to the Columbus Jewish Foundation is simple. Just complete the appropriate form and send to your broker. Upon receipt, your broker should immediately call the Foundation’s CFO, Tamra Fitzpatrick, at 614-338-2365 for further instructions. Do not personally authorize your broker to sell the stock or you will be subject to capital gains. Upon notification, Ms. Fitzpatrick will handle all sales so that your gift will be properly credited and acknowledged.

For some donors, gifts of real estate may be the most convenient way to make a meaningful gift as they continue to support the work of the Columbus Jewish Foundation. There are many methods that donors may use to make gifts of their homes or other real estate – through a bequest or, more commonly, through a lifetime transfer, with significant tax benefits.

Outright Gifts

The donor may convey the real estate to the Foundation as an outright gift. The property is transferred by deed to the Columbus Jewish Foundation and subsequently sold (unless there is a special investment reason to retain it).

The donor receives an immediate income tax charitable deduction based on the appraised fair market value of the property.

Gifts of partial interest in real estate can afford the donor the opportunity to retain use of the property for a portion of each year by conveying to the Foundation a fractional interest in the property, represented by the part of the year when the property is not used.

For example, the donor may use vacation property for four months of the year. A gift of a two-thirds (2/3) interest in the property (eight months) may be made to the Columbus Jewish Foundation, generating a charitable income tax deduction equal to two-thirds of the fair market value of the property. Thereafter, the donor continues to use the property for one-third of the year, and can either devise this one-third interest to the Foundation by will or leave it to heirs.

Gifts of partnership interests can provide a donor with a valuable income tax charitable deduction. The most common partnership gifts include those involving real estate, oil, and gas properties. Under special circumstances, a partnership interest may also be used to fund a Charitable Lead Trust.

Revised tax laws have made the operation of a private foundation costly, burdensome and restrictive, reflective of Congressional intent to favor publicly- supported charities such as the Columbus Jewish Foundation. As a result, many persons find it advantageous to terminate private foundations by distributing their assets to a fund that may be maintained as a part of the Columbus Jewish Foundation. The donor may make recommendations for distributions from the fund to recognized charitable organizations.

Naming the Foundation as the beneficiary and owner of an insurance policy generally affords Ohio donors a current-year income tax deduction for its cash value. If premium payments are continuing, local donors may be entitled to an income tax charitable deduction each time a gift is made to the Foundation that is used thereafter by the Foundation at its election to pay the insurance premium.

Because life insurance premiums are based on mortality rates, gifts of life insurance are extremely affordable for younger donors, thereby enabling them the opportunity to make sizable deferred gifts with modest out-of-pocket expenses.

There are several ways to give insurance as a charitable gift and also receive tax benefits:

• The Foundation can be designated as a beneficiary and owner of a new policy. When the Foundation is the sole owner, all premium payments are deductible.
• An existing policy can be transferred and the Foundation can be named as the owner and beneficiary. At the time of transfer, a current deduction roughly equal to the cash value of the policy can be taken. All future premium payments, when paid, would be a current tax deduction.

Life insurance proceeds can be earmarked in numerous ways:

• To fund an unrestricted gift to the Foundation, assuring the growth and continuity of our Jewish community.
• To create a philanthropic fund upon a donor’s death, allowing a donor’s spouse and/or children to continue their charitable interest.
• To create a “field of interest” endowment to support a particular community need.
• To ensure the continuity and perpetual support of specific agencies beyond the lifetimes of our valued donors.

Charitable Remainder Trusts

Charitable Remainder Trusts provide life income for one or several income beneficiaries, such as the donor and the donor’s spouse, and leaves the remainder interest to the Foundation or designated beneficiary.

There are two variations, the Annuity Trust and the Unitrust, each enabling donors to donate an asset and retain life income. Depending upon the donor’s needs, Charitable Remainder Trusts can be used as a personal retirement plan. They can be structured to pay income immediately or to defer the income. Unlike restrictions on IRA’s or qualified pension plans, there are no such restrictions on gifts that can be contributed to Charitable Remainder Trusts. Most importantly, all the contributions qualify for a charitable income tax deduction.

Pooled Income Funds

Pooled Income Funds are added to a trust established to receive cash or property in which a contributor, or anyone else so designated, receives life income. Income is based upon net earnings per unit of the Foundation’s Pooled Income Fund, multiplied by the number of units in the Fund.

The Foundation receives the remaining principal after the lifetime of the income beneficiary. Because of strict adherence to government pension rules, it is almost impossible to provide a pension benefit for someone you wish to help, like a long-time family employee.

A gift to the Foundation’s Pooled Income Fund for the benefit of a third party can help solve these problems. Pooled Income Funds generate an immediate charitable income tax deduction.

Charitable Gift Annuities

Charitable Gift Annuities enable the donor to make a meaningful gift, receive a fixed income stream for life, and derive significant income tax benefits. In exchange for the gift, the Foundation agrees to pay the donor a fixed annual sum. The payment may continue after the donor’s death to a surviving spouse. In addition to the income tax charitable deduction realized in the year the gift is made, and the subsequent cash savings from the tax deduction, a portion of the annuity payment is tax-free, since a portion of the income constitutes a return of principal. The Charitable Gift Annuity is a charitable giving vehicle of real value in retirement planning.

How it Works

• You contribute securities or other appreciated assets to a charitable lead trust.
• The trust makes fixed annual payments to the Columbus Jewish Foundation for a period of time.
• When the trust terminates, the remaining principal is paid to your heirs.

Benefits

• Income payments to us for a term reduce the ultimate tax cost of transferring an asset to your heirs.
• The amount and term of the payments to the Columbus Jewish Foundation can be set so as to reduce or even eliminate transfer taxes due when the principal reverts to your heirs.
• All appreciation that takes place in the trust goes tax-free to the individuals named in your trust.

Retirement plan proceeds paid after death are subject to both income and estate taxes. If you have accumulated substantial amounts in your retirement account and are in the highest income and estate tax brackets, these are not ideal assets to bequeath to your heirs. Naming the Columbus Jewish Foundation as the after-death beneficiary of one or more such plans (pension, profit sharing, Keogh, IRA, 401(k), etc.) can save such taxes and greatly assist the Foundation and/or your favored charities at a minimum cost to your family. You can, therefore, make a substantial donation with retirement plan assets that would otherwise have been used to pay income and estate taxes.

The IRA Charitable Rollover Provision is back and here to stay! Read our FAQ to learn more. 

Bequests offer varied ways of giving to the Foundation. The taxable estate is reduced by the total amount of the charitable bequest.

A Testamentary Trust may also be established through a will. This provides a portion of an estate to be held in trust, with a fixed sum or a fixed percentage payable for life to one or more designated beneficiaries and the remainder to the Foundation. The estate receives an estate tax deduction for the value of the remainder interest passing to the Foundation on the demise of the income beneficiaries.

Foundation planned giving options provide an opportunity for everyone to be a part of the root system that will produce plants for future generations to cultivate. Although many donors make endowment gifts using some planned giving techniques, all donors make these gifts so that our Jewish heritage will survive and that the next generation will learn from our example of philanthropy.