Philanthropic Funds: Hands-on Philanthropy
Anat Becker, J.D. | Executive Director, Jewish Community Foundation of MetroWest NJ

Today’s philanthropists are sophisticated, involved, and innovative. Though their methods are more complex, their motivation for tzedakah remains what it has been for centuries: to sustain the Jewish people, to enhance Jewish life, and to strengthen the community today and for the future.

Philanthropic Funds: Donor-Directed Philanthropy
The Jewish Community Foundation (JCF) of MetroWest offers many vehicles to ensure that the services and programs supported by United Jewish Communities (UJC) of MetroWest will continue into the future. One of these is our Philanthropic (Donor Advised) Fund Program. Philanthropic funds offer donors and their families the ability to engage in hands-on philanthropy while providing for the community’s well-being.

Philanthropic Funds: Designed to Endure
A philanthropic fund is a gift to JCF, maintained and managed by JCF, from which a donor may make recommendations for distributions to UJC or other approved charities: organizations that support the arts, education, health services, and, of course, Jewish causes. The fund generally bears the name of the donor or another individual selected by the donor, and can be a lasting tribute named in memory of a loved one. Upon the death of the donor, and a next generation successor, the gift becomes a part of the UJC Endowment Fund, perpetuating the donor’s name. JCF philanthropic funds allow the donor’s charitable dollars to grow tax-free, thereby increasing the resources available for grant making. They provide maximum tax benefits, offer flexibility, and simplify record keeping.

Donor Contributions
A donor may establish a philanthropic fund with an initial minimum contribution of $10,000. This contribution is tax-deductible and may be in the form of cash, credit card charge, stocks, or bonds. Additions may be made in any amount at any time by the donor, as well as by friends, family, private foundations, corporations, and charitable trusts.

Benefits of a Philanthropic Fund
By creating a philanthropic fund, you receive the following important benefits:

1. Maximum tax benefit: A philanthropic fund donor receives the maximum income tax deduction available for gifts to a public charity. Gifts of appreciated stocks, bonds, or mutual funds, held for more than one year, provide a donor with a double tax savings: a charitable income tax deduction for the full fair market value of the donation and avoidance of the capital gains tax imposed on the appreciation of the gift.
2. Convenience: The centralization of charitable contributions to a fund facilitates record-keeping and helps the donor make charitable grants in an organized and thoughtful manner. JCF staff is available to assist by preparing and mailing distribution checks and keeping all records and other financial information.
3. Tax-free income: Income earned by the fund is not taxed, either to the fund or the donor. The fund is professionally invested and may increase the amount available for charitable distributions.
4. Save time and money: JCF staff carefully monitors each fund, making approved distributions on a bi-weekly basis, reporting to the donor on the fund status quarterly, and maintaining all fund records.

The Talmud teaches us that as we did not find the world desolate when we entered it because our ancestors planted for us, so do we plant for those who will come after us. Philanthropic funds empower donors to do just that.