Glossary of Terms
UJC: Your Center for Jewish Philanthropy

Planned giving terms don't need to be confusing. Use this Glossary of Terms as your primary resource for understanding the range of philanthropic opportunities available the United Jewish Appeal of MetroWest annual campaign and the Jewish Community Foundation of MetroWest NJ, the planned giving arm of UJC MetroWest.

Annual Campaign – the annual fundraising effort that supports a range of services offered under Jewish auspices at home, in Israel, and in 60 countries around the world.

Annual Campaign Endowment (ACE) – a permanent fund dedicated to perpetuating, beyond your life, your annual campaign gift to the United Jewish Appeal of MetroWest NJ.

Appreciated property gifts – enables you to avoid or delay paying capital gains tax by making a charitable gift of stocks, bonds, mutual funds, real estate, or other assets that have increased in value. When the property has been held for more than 12 months, you may take a tax deduction based on the current value of the property.

Challenge grant – an opportunity for a donor(s) to match the gift of others toward the UJA Campaign, possibly for a specific event or criteria.

Charitable bequest – a donation established through your will in any amount, either to a general cause or to benefit a specific area or interest.

Charitable gift annuity – a one-time gift ($10,000 or more) that provides you with a fixed income for life, beginning at age 65 or later; the remainder of the gift goes to the Jewish community.

Charitable remainder annuity trust – a gift in the form of a trust (better for gifts exceeding $100,000) that avoids fluctuations in interest rates by providing a fixed income to you or someone you designate for life, joint lives, or a term of up to 20 years. Afterward, the remainder in the trust becomes the property of the Jewish community.

Charitable remainder unitrust – a gift in the form of a trust that provides a way to obtain an income for life which can grow as the funds invested in the trust grow. Rather than a fixed amount each year, this trust offers a fixed payout rate of return where the fund's balance is calculated yearly. Afterward, the remainder in the trust becomes the property of the Jewish community.

Charitable lead trust – another type of trust established for a specific term by contributing an income-generating asset, often real estate. The trust pays a fixed annual amount to the Jewish community until the end of the term. At the end of the term, the assets revert to the donor or the donor's heirs.

Donor advised fund – can be created with a minimum gift of $10,000 and allows you to recommend grants over your lifetime – or that of your successor – to charities you wish to support at any time.

Designated endowment – supports a specific organization, program, project, or other charitable interest of your choice.

Designated gift – contributions designated to a specific project or program.

Endowment – provides a permanent source of present and future income to your Jewish community or a charitable interest of your choice. You can indicate how the income should be used – for unrestricted use by the Jewish community or for a specific program or organization. This permanent fund can be created in your name or the name of someone you wish to honor or remember.

IRA or pension plan – donors who consider leaving a charitable bequest may provide additional benefit to their heirs and to the Jewish community by making the Jewish Community Foundation the beneficiary of their Individual Retirement Account (IRA) or Qualified Pension Plan. This method may provide more tax advantages than a bequest by will.

Lester Society – recognizes donors who have created endowments of $100,000 or more to the Jewish Community Foundation of MetroWest NJ to benefit the United Jewish Appeal of MetroWest NJ annual campaign.

Life estate agreement – enables you to transfer title to a residence to a charitable organization while you retain the right to live there and use the property for life. You receive a tax deduction in the year of the gift equal to the value of the remainder interest.

Life-income plan – provides payments to you at regular intervals throughout your lifetime. Includes charitable gift annuities and charitable remainder trusts.

Life insurance gift – an easy and inexpensive way of creating a significant endowment. You make UJA, UJC, or other organization the owner and beneficiary of a life insurance policy while you pay the relatively modest premiums and receive a tax deduction.

Lion of Judah Endowment (LOJE) – allows a woman to endow her Lion gift in perpetuity, regardless of her age.

Perpetual Annual Campaign Endowment (PACE) – a permanent fund dedicated to endowing your UJA MetroWest annual campaign gift. This term is used interchangeably with ACE.

Pooled income fund – allows you to contribute to a fund that is invested by a trustee and receive an income for life. The amount will vary from year to year, according to the fund's earnings.

Supplemental gifts – contributions made in addition to a donor's annual unrestricted gift to the UJA Campaign to support special projects and initiatives.

Supporting foundation – functions much like a private family foundation but, because it is aligned with the Jewish community, offers tax benefits not available to private foundations. Each supporting foundation has a board of trustees comprised of family and community appointees which decides questions of fund investment, management and distribution; meets periodically; and facilitates intergenerational and strategic giving.

Unrestricted endowment – allows the Jewish community to use funds where they are most needed, providing the flexibility needed to address changing needs or emergency situations.

For additional information or to speak with a representative, contact the at (973) 929-3060.