CHARITABLE VEHICLES
A simple agreement with Fairmount Temple by which the donor(s) contribute
assets of cash or securities and Fairmount Temple promises to pay the donor(s) a
lifetime fixed income. At mortality, Fairmount Temple receives the unused
portion of the annuity.
- The lifetime income can be for one life or two lives.
- The donor(s) receive a charitable income tax deduction.
- Assets are removed from the estate for estate tax purposes.
- Part of annuity income is viewed by the IRS as tax-free return of
principal.
- If you use highly appreciated securities held over a year, the capital
gains tax paid is spread out over a lifetime.
Anshe Chesed Fairmount Temple
Gift Annuity Rates
| Age |
One Life |
Joint & Survivor
(2 Lives) |
| 60 |
6.7% |
6.4% |
| 65 |
7.0% |
6.6% |
| 70 |
7.5% |
6.8% |
| 75 |
8.2% |
7.3% |
| 80 |
9.2% |
8.0% |
| 85 |
10.5% |
9.0% |
| 90 |
12.0% |
10.6% |
A gift of cash or securities to a trust that pays the donor
- a fixed dollar amount or percentage of the initial fair market value (Annuity
Trust) or
- a fixed percentage of the net fair market value, revalued annually
(Unitrust)
for life or a number of years, not to exceed 20 years, with the remainder of
the gift going to Fairmount Temple.
The major difference between the annuity trust and the unitrust is how the
amount of trust income us determined. With an annuity trust, the annual income
to the beneficiaries will be the same, regardless on how well the investments
performed with the trust's assets. With the unitrust, the annual income to the
beneficiaries would change based on the value of the fund each year.
- The income distribution can be for one or two lives.
- The donor receives a charitable income tax deduction for the "present
value" of the remainder gift to Fairmount Temple.
- The donor chooses the trustee, including serving as own trustee.
- The donor decides with Fairmount Temple on the fixed dollar distribution
or percentage distribution.
- Assets are removed from the estate for estate tax purposes.
- The donor incurs no immediate capital gains tax on transfer of highly
appreciated securities held over a year.
A gift of Life Insurance can allow you to make a substantial contribution to
Fairmount Temple, at a low out-of-pocket cost. If you purchase a life insurance
policy and name Fairmount Temple as the owner and beneficiary, then the annual
premium payments are income tax-deductible.
There are numerous reasons why you purchased life insurance many years ago.
Now the circumstances may have changed and you no longer need the coverage. If
you decide to transfer a fully paid existing policy to Fairmount Temple, you
receive an income tax deduction for the cash value of the policy.
Life insurance can also be used in coordination with other charitable
vehicles to replace assets. Suppose you create a Charitable Remainder Trust with
Fairmount Temple and use your annual income from the trust to pay the premiums
on a life insurance policy, with your children as the beneficiary. When you are
gone, Fairmount Temple receives the remaining assets in the trust and ideally,
the life insurance your children receive replaces that which was donated to the
temple. If structured properly, the life insurance passes to your heirs free of
estate taxes.
In our lifetimes there are some institutions that truly make a difference --
a school, a service organization or a synagogue. Too often we fail to
acknowledge during our lifetime the essential role that these institutions are
playing. At the end of our lives it is important that we acknowledge and
remember the most vital institution of Jewish life... our temple.
Many congregants want to help Fairmount Temple, yet they may need access to
their assets during their lives. A charitable bequest allows congregants to
create a permanent legacy at their Temple. A bequest is often the largest gift
an individual can make to an institution like Fairmount Temple, and it is by far
the most commonly used type of deferred gift arrangement. Because they are
revocable gifts, they do not in any way jeopardize the donor's standard of
living or ability to meet future needs.
Bequests of all sizes are important sources of support for Fairmount Temple.
They can provide funds for any aspect of our Congregation, such as Religious
School, youth programs, social action, festivals, outreach, or adult education.
By remembering Anshe Chesed Fairmount Temple in our Wills, we can do our part
to assure a continuing religious home for future generations. There are many
ways to make a bequest to Fairmount Temple. You and your attorney can decide
which best suits your individual circumstances.
To learn more about Fairmount Temple's charitable vehicles, please call
216-464-1330 or submit the online response form. All inquiries
are confidential.
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