Donor-advised funds easy to set up, good for you and the community

Posted

Everyone has a passion. Some people are passionate about education, others about animal rights. No matter what it is, everyone’s got at least one cause that they feel strongly about.

Have you ever wished that you could allot an amount of money, and add to it whenever you wish to help support your passion? That wish can become a reality with a Donor Advised Fund established with the Jewish Federation Foundation of Greater Rhode Island (JFF), as part of the Jewish Alliance of Greater Rhode Island.

What is a donor-advised fund? Imagine you have a checkbook in which all the money is reserved for philanthropic purposes. You can write checks or make grants from that fund to contribute to any cause as part of your philanthropic giving. This makes budgeting easier as money is not coming directly out of your daily accounts, and the money is liquid so you can add to or take out whatever, whenever.

Why would you set up a donor-advised fund with the JFF? If the focus of your philanthropy is Jewish causes and giving Jewishly, the JFF is the right place for you. The JFF also offers a low initial contribution, which adds to the ease of establishing a donor-advised fund. Many foundations insist on an initial donation of $5,000, but with the JFF, the minimum is $2,500. The JFF provides a safe place to put philanthropic dollars, especially in these uncertain times.  

In 2006, Jeffrey and Pamela Vogel, of Providence, established their donor-advised fund with the former Jewish Federation of Rhode Island. Jeff Vogel, a JCCRI past president, was involved in fundraising for the first renovations made to the Dwares Jewish Community Center in Providence, and believes strongly in the Jewish Alliance’s mission and guiding principles. 

“The [Jewish Alliance] is representative of our community, and brings everyone together. People have met their best friends for life here, and that’s really motivated us to put our time and dollars towards that,” he said.

The Vogel family could have selected any charity for their philanthropic dollars, but they chose the JFF. “Donor-advised funds are great for those with lumpy income. You can tuck away money from good years to help cover gifts during light-income years. The JFF has had decent investment performance, the rules for setting one up were simple, and most of our giving is Jewish.” 

Donor-advised funds are flexible. Fund-holders can even use the money in their donor-advised account to pay synagogue dues or contribute to the Jewish Alliance’s Annual Campaign. 

When the Vogels set up their fund, they quickly realized that they were able to give money and direct grants precisely as they wished. 

“We try to use our fund strictly for Jewish giving, but you can use it for anything that is a Jewish cause or value, like education,” Vogel said.

The Vogels’ daughter, Amy, now a senior at the Wheeler School, attended the Early Childhood Center at the JCC, was a J-Camp counselor, and now uses space at the Jewish Alliance for BBYO meetings. 

“She’s definitely an up-and-coming Jewish leader,” said Vogel. 

And that is exactly why giving Jewishly, be it through a donor-advised fund or another planned giving approach, is so important. As Jeff Vogel put it, “if the Jewish identity of your children is important to you, it’s pretty important that we all invest.”

HILLARY SCHULMAN is a development associate for the Jewish Alliance.