Sustaining the Jewish community

Creative planned giving opportunities to leave a lasting Jewish legacy

For decades, Jewish communities across North America have organized themselves by establishing Jewish communal institutions responding to the urgent needs of the times. Jewish Federations, in particular, and now the Jewish Alliance, have played and continue to play a central role in American Jewish history in leading the Jewish community through good times and bad, through rescue and refuge, through caring for the vulnerable, creating communities of learning, kindness and social justice.

In addition to serving the immediate and pressing needs of the community, we have the responsibility to our fellow Jews and generation of Jews who came before us to ensure a strong foundation for our Jewish community. How can we sustain all the programs and services we provide as a Jewish community?

For many of us, our support of our Jewish community is guided by the Jewish value of tzedakah. For community members who care deeply about the strength of the Jewish community, making a planned gift is a terrific way to have a meaningful impact on Jewish life.

Over the years, endowment support has benefitted our community’s Jews in every age group, in Rhode Island and beyond. In addition to the community impact of the dollars raised for the Jewish Alliance’s Annual Campaign, last year alone, the Jewish Federation Foundation’s endowment made grants in excess of $1 million to support our Jewish community throughout Rhode Island and around the world.

These grants are made from the following two sources: permanent endowment funds that community members established to help sustain particular organizations or specific areas of interest and donor-advised funds established by community members who use their personal fund to recommend grants to charitable organizations.

The Jewish Federation Foundation of Greater Rhode Island’s endowment has helped families forge Jewish connections, assisted our seniors, strengthened our synagogues and schools, introduced teens to Israel and helped make Jewish education more affordable. This is possible because endowment funds are invested to generate income, which is used each year to improve the lives of Jews throughout greater Rhode Island and worldwide; the rest is added back to the endowment to protect its value against inflation. The benefits to the Jewish community and to those Jews who have chosen to make a planned gift are significant.

Depending on one’s financial and tax situation, a planned gift may be the easiest, most cost-effective option to create a Jewish legacy. Many people think that you need to be a millionaire to establish an endowment fund. The truth is that every gift of every amount is important and impactful. I often wonder what the Jewish community would look like, how much more joy and meaning Jewish life would be, if only more people thought about leaving part of their estate to any one of the many Jewish organizations throughout Greater Rhode Island.

Community members who envision a future Jewish community are creating endowments that will touch the lives of generations to come. Establishing an endowment fund at the Jewish Federation Foundation of Greater Rhode Island can be done quite simply during one’s lifetime with a gift of cash or securities either as a single payment or with payments over several years.

Another easy way is to leave a bequest through one’s will, trust or retirement account. This is suitable for many people because it is always revocable, should one’s circumstances change. A bequest allows one to make a major gift without a significant expenditure during one’s lifetime.

There are many other creative ways to sustain the Jewish community. For community members in their 20s, 30s and 40s, establishing a life insurance policy to benefit the Jewish community is easy to do. And if there is an insurance policy that one already owns that might not be needed, it’s easy to name the Jewish Federation Foundation of Greater Rhode Island as a beneficiary.

Another creative way to support the Jewish community is to give a gift that pays you or your loved ones income for life, and then adds to the Jewish Federation Foundation of Greater Rhode Island’s endowment through a charitable gift annuity or a charitable trust. Community leaders Mel and Patty Alperin are not only generous donors to the Alliance Annual Campaign, but they also understand the importance of sustaining the Jewish community for future generations.

The Alperins recently established two Charitable Remainder Unitrusts at the Jewish Federation Foundation of Greater Rhode Island. As a longtime Jewish Alliance (formerly Federation) campaigner and past president, Mel views this planned gift as a logical extension of their years of Annual Campaign support. Mel commented that, “If you think about it, if you’re giving to the Jewish Alliance on an annual basis during your lifetime, why not take advantage of one final opportunity to make an impact on the future?” Mel describes his planned gift as a “win-win situation. There are so many creative ways to help – whether you have a lot to give or just a little, it’s really a terrific thing.”

Mel explains that, “We wanted to accomplish two important goals when we set up the charitable remainder trusts. First was to ensure that those dear to us had an additional source of sufficient income during their lifetime. And second, we wanted to help strengthen the Jewish community that was there for us growing up. We want to ensure that there will be sufficient funds for the needs of the next generation.”

Charitable remainder trusts are popular because one can make a charitable gift, reducing one’s estate, and provide a steady stream of income for life. Patty said, “I’m proud that Mel and I were able to provide for the Jewish community and also help our family. We funded the trusts with appreciated securities, which is always a prudent way to make a charitable gift.” Trusts can also be funded with appreciated assets, such as when selling a business or other assets. “I hope our commitment will inspire others to consider a planned gift at the Jewish Federation Foundation.”

The Alperins’ endowment reflects their deep commitment to Jewish life and also their confidence in the Jewish Federation Foundation of Greater Rhode Island and the Jewish Alliance. “We feel that we can trust the Jewish Federation Foundation,” Mel says.

Anyone who values our Jewish community can make a big difference with a planned gift of any size. At the Jewish Federation Foundation of Greater Rhode Island, planned gifts establish endowment funds that can be either for unrestricted purposes or used to help support the Alliance Annual Campaign or specific programmatic areas or organizations. One can also name the fund in honor of oneself, one’s family, or a loved one, and that name will be recognized in Jewish Alliance publications. Endowment funds established decades ago are still providing important financial support to our Jewish community today.

A trusted custodian of our community’s philanthropic capital, the Jewish Federation Foundation of Greater Rhode Island currently oversees more than $52 million in assets. The Jewish Federation Foundation of Greater Rhode Island’s investment objective for our endowment assets is to achieve long-term gains and to minimize risk, while providing a dependable source of support for community needs. It is extremely important to the future of the Jewish people that we have this source of funds that is perpetually supporting areas such as Jewish education, scholarships, Jewish overnight camping, caring for the vulnerable, support for Israel and Jews worldwide and programs for Jewish families with young children.

The Jewish Federation Foundation of Greater Rhode Island, currently chaired by Doris Feinberg, has a large Investment Committee comprised of volunteer leaders familiar with investment and endowment management. Rob Sherwin, current chair of the Investment Committee, said that “The Jewish Federation Foundation’s endowment is a critical component of the overall picture and strength of our Jewish community. Our Investment Committee, guided by an outside investment consultant, is diligent about following our asset allocation and investment policy, providing us with the best possible investment performance and protection of our capital in the unfortunate event of a market decline. The funds are administered carefully, distributing the income prudently and managing investments in accordance with the highest ethical and financial standards.”

Rob Sherwin feels that his connection to the Jewish community comes not only from acting as the chair of the Investment Committee, but also from being a community member who cares deeply about the future of the Jewish community. He said, “My wife Mindy and I are committed to ensuring a strong Jewish community and have recently made arrangements for a planned gift to the Jewish Federation Foundation. We are confident with the Jewish Federation Foundation’s endowment process and know our support will help engage the next generation and all the generations that follow.”

One of our community’s challenges is not only to inspire people to create a Jewish legacy, but also to identify those community members who have already made a bequest to the Jewish community and have not informed the charitable organization. By notifying the organization, community members can ensure that written terms are established to guarantee that the funds available each year will be used in a manner consistent with their wishes. For example, if you care deeply about Jewish education or scholarships to send kids to Jewish overnight camp, we want to ensure that, 100 or 200-plus years from now, we can count on that support.

Endowments can be structured to support not only the Jewish Alliance, but all of the Jewish organizations close to one’s heart. Support of the Jewish Alliance is indeed critical, but the Jewish Federation Foundation of Greater Rhode Island is here to help strengthen the entire Jewish community, including all our Jewish agencies and partners, synagogues, and schools. Imagine the impact an endowment fund can have when the dollars generated each year support not one, but two or three or even 18 of your favorite Jewish organizations!

Community members who have bequest intentions or other planned gifts are members of the Jewish Federation Foundation of Greater Rhode Island’s Dor l’ Dor Planned Giving and Bequest Society. A special event to honor and recognize members of the Dor l’ Dor Society is planned for May 1, 2014.

The Jewish Federation Foundation of Greater Rhode Island is available to you and your tax and financial advisors to discuss the options that are best for you and your financial situation. We have the knowledge and expertise to help you strengthen the Jewish community, endowing your personal vision for the future.

PLEASE NOTE: The information in this article is offered for general informational and educational pur-poses and is not legal or financial advice. You should seek the advice of your professional advisor on all such matters.

EDWARD M. BRUCKNER, Vice President of Financial Resource Development, can be contacted at ebruckner@jewishallianceri.org or 401-421-4111, ext. 174.