FUND FOR THE JEWISH FUTURE
Create your legacy to help transform our global Jewish community.
What is
the
Fund for
the
Jewish Future?
By supporting Birthright Israel Foundation through an estate gift, you will be an integral part of sustaining and strengthening the Birthright Israel program and the transformative power of our programs for generations to come.
We invite you to explore the financial, estate, investment, and philanthropic options available to help you meet your current philanthropic goals and extend your generosity well into the future. We provide a professional team to work with you to establish a plan that is right for you and your family’s financial, tax, and estate planning needs.
Join the ranks of Birthright Israel Foundation supporters who have committed to being a part of the Birthright Israel Fund for the Jewish Future.
Six Ways to Make a Gift 1 Gifts by Will Leave a Gift in Your Will 2 Gifts that Provide Income
Create a Gift Annuity for a Dependable Source of Extra Income Create a Charitable Remainder Trust 3 Endowments and Designated Gifts Create an Endowment
Name Birthright Israel Foundation as a Beneficiary of Your IRA
Name Birthright Israel Foundation as an Owner/Beneficiary of Your Life Insurance Policy
Gifts by Will
Include Birthright Israel Foundation in your Estate plans
Noting your intent to support Birthright Israel Foundation through your will is perhaps the easiest way to be a part of the Fund for the Jewish Future. We include some general bequest language below but also welcome the opportunity to work with you directly to craft any bequests that contain greater specificity. Donors then work with their estate attorneys to update their wills. Upon request, we can provide a short how-to guide covering the steps of updating your will.
We encourage all donors who have included Birthright Israel Foundation in their estate plans to complete a Declaration of Intent*, allowing us to formally attribute your legacy gift to you. Declarations of Intent are available on our website or upon request.
*Declarations of Intent are non-binding and can be changed at any time
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“We made a legacy commitment to Birthright Israel to support the Jewish people and our homeland. Birthright Israel is the most impactful way to strengthen Jewish identity and community. We hope and pray that Israel and Birthright Israel flourish for generations to come.”
-Michael and Corie Koss
Sample Bequest Language
(To share with your professional advisor)
I bequeath to Birthright Israel Foundation, a tax-exempt New Yorknot-forprofit corporation, (insert appropriate options):
A: [the sum of ($) dollars]
B: [ percent ( %) of my (residuary) estate]
Gifts that Provide Income
Create a gift annuity for a dependable source of extra income
The Birthright Israel Gift Annuity is a vehicle that provides multiple benefits, including:
• A high, fixed-rate, lifetime income for individuals, much of which may be paid tax-free
• An income tax charitable deduction
If your desire to make a gift to Birthright Israel Foundation is combined with a need for lifetime income, a Birthright Israel Gift Annuity may represent an ideal planning opportunity. If you’re interested in requesting a free analysis of a Birthright Israel Gift Annuity, please complete the information request form on our website or email us directly.
How does a gift annuity work?
Gift annuities are based on tables of rates for the life or lives of one or two annuitants. Rates are fixed and do not vary.
Give a Gift with a Lasting Impact.
Plan for Retirement with a Deferred Gift Annuity
If you are a younger donor looking to reduce your income tax liability now and secure a high, fixed-rate, lifetime income in the future, a Birthright Israel Deferred Gift Annuity (DGA) might be a solution. You can elect the date you would like your lifetime annuity payments to commence, and the fixed rate is calculated now. You can also elect a flexible deferred gift annuity which will enable you to defer beginning lifetime annuity payments in larger amounts which will commence after the date the DGA would otherwise begin. Although the payments are deferred, there is a current income tax charitable deduction available for the contributor.
Example
A One-Life Birthright Israel Gift Annuity Funded with Cash
Jim is 75. He is concerned with the low rate of return on his cash investments. He is interested in a higher rate of return for life without increasing any risk. He has been a supporter of the work of Birthright Israel and is interested in a $20,000 Birthright Israel Gift Annuity.
1. Purchase price of annuity: $20,000
2. Fixed lifetime annuity rate: 7.0%
3. Fixed annual annuity payments: $1,400 (paid monthly, quarterly, semi-annually, or annually)
4. Current, one-time income tax charitable deduction: $8,587
5. Income tax savings from deduction: $2,147 (line 4 times 25% marginal rate)
6. Net cost of the annuity: $17,853 (line 1 minus line 5)
7. Effective annuity rate: 7.9% (line 3 divided by line 6)
8. Annual tax-free portion: 65.7% (continues for life expectancy of 12.4 years)
Final calculations will be based upon then current Birthright Israel gift annuity rates and the most favorable IRS discount rate in effect for the month of the gift.
Create a Charitable Remainder Trust
Charitable remainder trusts (CRTs) are irrevocable instruments that are particularly well-suited for donors who have appreciated assets (e.g., stock, real estate, works of art, or other collectibles), and who would like to minimize taxes on realized long-term capital gains, receive fixed-rate income for life, and make a charitable gift. Upon creation of the CRT, the donor receives a significant, onetime income tax charitable deduction.
Thereafter, the CRT provides annual payments to the designated beneficiary(ies) at a fixed rate of not less than 5 percent. The assets remaining in the CRT at the end of the lifetime(s) of the beneficiary are paid over to the charities named in the trust agreement.
There are two types of CRTs:
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Charitable Remainder Annuity Trust (CRAT)
This trust provides annual annuity payments based upon a fixed lifetime rate. The fixed payments are calculated at the time the trust is created and are not impacted by any changes in the value of the assets in the trust throughout its term.
Charitable Remainder Unitrust (CRUT)
This trust provides annually adjustable payments based upon a fixed lifetime rate. Annual payments are determined by revaluing the assets in the trust at the close of each calendar year and multiplying that valuation by the fixed unitrust rate to determine payments for the next calendar year. It is anticipated that over time the CRUT may serve as a hedge against inflation.
Example
Miriam is 75 years old. She has a personal investment account with stocks worth $250,000, with a cost basis of $50,000. She wants to reduce the risk of an allstock portfolio but is concerned with the large amount of taxable gain. How can a CRAT or CRUT help her?
CRAT CRUT
One-Time Charitable Deduction* $131,555 $133,365
Tax on the Long-Term Capital Gain of $200,000 at time of contribution
Annual Payments from the Trust
$12,500
$17,500 (In the 1st year; payments adjust annually based upon a revaluation of the trust’s assets multiplied by the fixed rate.)
* Final calculation of the deduction and fixed rate will be based upon the most favorable IRS discount rate in effect for the month of the gift and the applicable IRS tests.
Endowments and Designated Gifts
Create an Endowment for Birthright Israel Foundation
An endowment is the gift that keeps on giving, ensuring that your legacy or the legacy of a loved one continues to live on through Birthright Israel. An endowment fund may be named for you or in honor or memory of a friend, family member, foundation, or other institution. Gifts made during your lifetime or established through a bequest may be endowed so that only income is used to carry out the purposes set out in your will or endowment agreement. An endowment fund may also be established to run in perpetuity.
Support Our National Endowment
Birthright Israel Foundation is committed to building a national endowment that will provide funds to support our transformative, immersive programs that fuel Jewish pride and connection, including our iconic 10-day trip, Onward, Excel, and the Volunteer program. Committing your bequest to our national endowment program is one way to ensure that your bequest will continue to generate muchneeded financial support for Birthright Israel now and in the future.
Designated Endowments
Birthright Israel Foundation also provides several designated/restricted endowment options, including the opportunity to create a fund that endows a seat on one of our Birthright Israel buses, or even an entire Birthright Israel bus.
Gifts of Appreciated Assets
Donate to Protect Assets and Avoid Capital Gains Tax
Contributing appreciated securities, real estate, works of art, or other collectibles may often be more beneficial than giving cash. When you transfer appreciated long-term capital gain stocks, bonds, or mutual fund shares to Birthright Israel Foundation, you receive an immediate income tax deduction for the value of the property/securities on the date of transfer. Specific IRS rules apply to the deduction of the appraised value of real estate, gifts of art or other collectibles. Additionally, you pay no tax on any long-term capital gain. We encourage you to donate your most appreciated assets to create the biggest tax savings for you.
Gifts from Retirement Plans
Name Birthright Israel Foundation as a Beneficiary of your IRA
Retirement assets may be subject to double taxation at the end of a lifetime (there is potential estate tax liability, and the assets may also be subject to income taxes on the individual income tax return filed for the year of your death). A charitable contribution of retirement assets may reduce or eliminate these taxes.
If you would like to name Birthright Israel Foundation as a beneficiary of your IRA or other retirement plan, you may do so by modifying your beneficiary designation forms accordingly.
Establish a QCD Charitable Gift Annuity
Use a tax-free IRA distribution to establish a one-life or two-life Charitable Gift Annuity, as allowed under the Legacy IRA Act.
Investing in the
Jewish Future.
Gifts of Life Insurance Policies
Name Birthright Israel Foundation as an Owner/Beneficiary of your Life Insurance Policy
A charitable gift of life insurance can create a legacy in support of Birthright Israel Foundation at a relatively low annual cost to you while preserving your current capital.
There are several ways to use a life insurance policy to achieve your philanthropic goals:
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You can donate a life insurance policy that you currently own and may no longer need and receive an income tax deduction for the calculated value of the policy.
You may, instead, name Birthright Israel Foundation as a beneficiary of a life insurance policy and retain ownership of the policy.
Alternatively, you may purchase and contribute a new life insurance policy, designating Birthright Israel Foundation as the owner and beneficiary.
Any premium payments you make on a contributed life insurance policy, whether directly to the insurance company or by way of an annual unrestricted contribution to Birthright Israel Foundation, may be deductible as a charitable contribution.
