Planned Giving & Endowments

Planned Gifts - Arrange Now to Give Later
There are a variety of creative ways you can include Hillel Day School in your estate and financial planning such as wills, bequests, life insurance, charitable remainder trusts, and charitable lead trusts.

The Best Way to Establish a Legacy Endowment Fund is a Legacy of Education for Your Future Generations
Every person has a unique family and financial situation. In recognition of different estate planning and tax objectives, an endowment can easily be designed to match your personal circumstances with great benefit.

Bequest in Your Will or Trust
This is a very common technique for creating an endowment. A charitable bequest allows individuals to retain use of and control over their assets during their lifetime while ensuring a legacy for the future of Jewish education.

• A donor can create a charitable trust through a will or leave an outright charitable bequest.

• A charitable bequest is deductible in determining the amount of an estate subject to death taxes.

Life Insurance Policy
The reasonable cost and tax benefit make this particularly appealing for donors to perpetuate their gift to Hillel Day School.  The transfer of an existing policy to a charity is deductible as a charitable gift but limited to the policy owner's cost basis. So, technically, the deduction is the lower of the policy fair market value or cost basis or the policy’s fair market value.

• Hillel Day School should be designated as beneficiary and owner of a new policy. When Hillel Day School is the sole owner, all premium payments are tax deductible.

• An existing policy can be transferred to Hillel Day School by naming the school as the owner. At the time of transfer, a current deduction equal to the net cash value of the policy can be taken. All future premium payments would be a current-year tax deduction in the year paid.

Outright Gifts of Cash or Appreciated Securities
Establishing an endowment today with cash or appreciated securities creates an endowment during your lifetime. Appreciated stocks can be donated to avoid capital gains taxes. Both cash and stocks will create a current income tax charitable deduction.

Charitable Income Plans
Gift Annuity:  In exchange for a contribution to Hillel, you will receive a monthly annuity benefit for your lifetime or the joint lifetime of you and your spouse. The amount you receive depends upon your age (and the age of your spouse if he or she is a beneficiary), the amount of the contract, and the interest rate offered by Hillel. An income tax deduction may be realized based on the difference between what you give and the present value of what you will receive in the form of a lifetime annuity. 

Charitable Remainder Trust: A grantor creates an irrevocable trust and retains an annuity interest for the grantor's life and/or the lifetime of his or her spouse. Upon the grantor's death (or spouse's death, whichever is later), the trust assets pass to Hillel. You are entitled to an income tax deduction for the present value of what Hillel will receive in the future.

• You would contribute cash or appreciated stock now, receive current income during your lifetime, and at death, the remainder will create an endowment.

• Unlike current restrictions on IRAs or amounts that can be contributed to qualified pension plans, there are no such restrictions on gifts that can be contributed to charitable remainder trusts.

• An income tax charitable deduction is taken at the time of the gift, and the asset is removed from the estate for estate tax purposes.

Charitable Lead Trust:  A grantor creates an irrevocable trust and that provides income to Hillel for a period of time. When the trust ends, the trust property reverts to the grantor or his family. The grantor is entitled to an income tax deduction for the present value of the income given to Hillel, but must report trust income annually on his or her tax return.

IRAs and Pension Funds
These types of funds are ideal to give to charity because if paid to your family they can be subject to both income tax and estate tax. Hillel can be named primary or contingent beneficiary on these accounts. If you have accumulated substantial amounts in your retirement account and you are in the highest brackets for paying income and estate taxes, those taxes can exceed seventy percent (70%) of the amount in the plan.

• These are not ideal assets to bequeath to your heirs.

• Naming Hillel Day School as the after-death beneficiary of your IRA or pension fund can save your family thousand, if not millions of dollars in taxes.

Philanthropic Fund and Supporting Foundation
A donor-advised fund or family foundation could be established now. During your lifetime, you can recommend distributions to qualified charities.

An endowment could be created in several ways:

• Set aside a certain amount of the fund now as a permanent endowment

• Set aside a sum of money at death

• Direct your successors to continue your gift to the Annual Fund after your death.

The principal of these funds will provide a solid base of ongoing support for Hillel Day School in perpetuity.

For more information on making your gift, please contact our Development Office at (561) 470-5000 ext. 225 or e-mail suzanner@hilleldayschool.org or Glen Golish, LUTCF, MDRT, Chair of Planned Giving, at (561) 864-8320 or e-mail glen@grgolish.com.

Hillel Day School, its agents and employees do not give tax or legal advice.  Please consult with your tax or legal advisor regarding your individual situation.