When I was a kid, people changed their name…In this generation, people are proud to be Jewish, and I think Israel has a great deal to do with that. Birthright Israel impacts the Jewish identity because there is nothing like having been there. There is nothing like experiencing a country and its people…In the end, I’ve contributed to something that will go on.
Dr. Marty Schulman
Birthright Israel Planned Giving Supporter
What is Planned Giving?
Creating your legacy through gift planning with Birthright Israel Foundation will generate the financial resources necessary to sustain the Birthright Israel program and the transformative power of this incredible 10-day journey for generations to come.
Gift Planning offers you the opportunity to use financial, estate, investment, and philanthropic options to help meet your current philanthropic goals and extend your generosity well into the future. A planned gift can also protect your assets, provide for your family, and guarantee you income for life.
Join the ranks of Birthright Israel Foundation supporters who have committed to ensuring the long-term sustainability of Birthright Israel. 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.
Gifts by Will
Leave a Gift to Birthright Israel Foundation in Your Will or Trust
A bequest to Birthright Israel Foundation in your will or trust is a great way to ensure that the Birthright Israel trip will continue to transform the lives of Jewish young adults. A bequest may be designated for a particular purpose or program, or it may be left without restriction.
Declarations of Intent
Do you already have Birthright Israel Foundation in your will or want to let us know that we are part of your estate plans? You are part of our Birthright Israel Legacy society. Please complete a Declaration of Intent, so we include you among our most valued supporters and incorporate you into various donor recognition opportunities. You may change the terms of your Declaration of Intent during your lifetime.
If you don’t currently have Birthright Israel Foundation in your will but would like some guidance on how to include Birthright Israel Foundation in your estate plans, please consider consulting our how-to guide. If you would like additional assistance in thinking through your estate plans, contact a planned giving professional today.
The generations who came before me were never fortunate enough to see the State of Israel with their own eyes. My bequest will ensure that future generations always have that opportunity.
Birthright Israel Foundation Planned Giving Donor
Gifts That Provide Income
Create a Gift Annuity for a Dependable Source of Extra Income
Planned Giving offers the Birthright Israel Gift Annuity, a vehicle which provides multiple benefits that include:
- 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. Interested in seeing the latest rates? Complete a Gift Annuity Information Request today!
How Does a Charitable Gift Annuity Work?
A Charitable Gift Annuity (CGA), as the name implies, is an annuity with a charitable component—it combines a gift with an investment. A gift annuity agreement is a contract between Birthright Israel and the annuitant(s) under which Birthright Israel is obligated to make fixed, lifetime income payments to the annuitant(s). A CGA can benefit one or two individuals and can be established for a relatively modest sum. This agreement is regulated by the State and is subject to certain reserve investment requirements. The annuity rate is based on life expectancy and can be quite generous. The gift will also generate a current charitable income tax deduction that is calculated by subtracting the present value of the anticipated income payments from the total amount contributed to establish the annuity. After the last payment has been made, Birthright Israel will have access to the remaining funds.
If the annuity is purchased with cash, the income distributed each year will be paid to the annuitant(s) as both ordinary and tax-exempt income. If this is considered together with the available income tax deduction, the actual yield will be significantly higher than the fixed annuity rate. When appreciated securities are used to make the gift, the annual income will also have a capital gain component apportioned annually.
Plan for Retirement with a Birthright Israel 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 Deferred Gift Annuity 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. Although the payments are deferred, there is a current income tax charitable deduction available for the contributor. A schedule of flexible deferred gift annuity payments commencing on the date you initially elect and continuing for 15 years thereafter may be included, enabling you in the future to choose the date you want your payments to begin.
Example A One-Life Birthright Israel Gift Annuity Funded with Cash
|Jim is 70. 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.
|Purchase price of annuity
|Fixed lifetime annuity rate
|Fixed annual annuity payments
(paid quarterly, semi-annually or annually)
|Current, one-time income tax charitable deduction
|Income tax savings from deduction
(line 4 times 25% marginal rate)
|Net cost of the annuity
(line 1 minus line 5)
|Effective Annuity Rate
(line 3 divided by line 6)
|Annual tax-free portion
(continues for life expectancy of 19.9 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.
Birthright Israel Charitable Gift Annuity Rates by Age
Create a Charitable Remainder Trust (CRT)
Charitable Remainder Trusts 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, one-time 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. The two types of CRTs are detailed below.
Charity Remainder Annuity Trust (CRAT)
A Charity Remainder Annuity 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)
The Charitable Remainder Unitrust 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.
Although marketable securities can be used for this trust as well, the CRUT is often a good vehicle to utilize with illiquid assets such as real estate or artwork. It enables the trustee to sell the asset at an opportune time and to the extent possible pay the beneficiary the income that was delayed while the asset in the trust was illiquid. The CRUT also allows for receipt of additional contributions during the term of the trust.
Benefits of Both CRATs and CRUTs
Both the CRAT and CRUT provide the following benefits to a contributor:
- A fixed rate of return usually greater than earned previously on the contribution.
- Avoidance of tax on the long-term capital gain on contributed appreciated property.
- A current income tax charitable deduction for the value of the future charitable gift.
- Avoidance of estate taxes on the contribution and its appreciation in the trust.
Example How can a CRAT or CRUT help you?
|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 all-stock portfolio but is concerned with the large amount of taxable gain.
|One-Time Charitable Deduction*
|Tax on the Long-Term Capital Gain of $200,000 at time of contribution
|Fixed Rate of Return*
|Annual Payments from the Trust
|* 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.
|** In the 1st year; payments adjust annually based upon a revaluation of the trust’s assets multiplied by the fixed rate.
Have you already created a charitable trust naming Birthright Israel Foundation as a beneficiary? Let us know by completing our Declaration of Intent.
Endowments & 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 the Birthright Israel program. Committing your bequest to our national endowment program is one way to ensure that your bequest will continue to generate much-needed financial support for Birthright Israel now and in the future.
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, in perpetuity.
You may establish a term endowment either without restrictions for its use or designated for a particular program of Birthright Israel. A term endowment fund may apply both principal and income over a period of years to carry out its purposes. In this way you will be able to make a more immediate impact on our work.
There’s never been a better time to begin taking the steps to establish your endowment fund with Birthright Israel Foundation. Contact us today to get in touch with a planned giving expert who will guide you through the process.
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 real estate or long-term capital gain stocks, bonds, or mutual fund shares to Birthright Israel Foundation, you receive an immediate income tax deduction for the fair market value of the property/securities on the date of transfer. Specific IRS rules apply to the deduction of the appraised value of 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.
Have a couple of questions? Ready to get started? Reach out to a planned giving expert today and we can help you maximize your tax savings while you support Birthright Israel Foundation.
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.
How You Can Ease the Tax Costs of Inherited IRAs
With “stretch” IRAs no longer permitted and distributions from certain inherited IRAs required to be completed in no greater than 10 years, there may be an opportunity to reduce the tax costs and increase the term to life/lives using a charitable remainder trust after the lifetime of the IRA owner.
If you want to know more about modifying the beneficiary designation forms on your IRA or other retirement plans, or you have other questions, please reach out to a planned giving expert today.
Gifts From Insurance Policies
Name Birthright Israel Foundation as an Owner/Beneficiary
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. You can donate a life insurance policy that you currently own 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.
Example How You Can Make a Gift of Life Insurance
|Rachel is 50 years old and would like to make a major gift for the future work of Birthright Israel. She is considering contributing a new life insurance policy to Birthright Israel Foundation that can be fully paid for in five years. She has two choices:
|She determines how much she can afford yearly for five years to pay premiums on a policy, and how much death benefit that will provide for Birthright Israel Foundation at the end of her lifetime; or
|She decides the amount of death benefit she wishes to leave to Birthright Israel Foundation at the end of her lifetime, and the annual premiums for five years will be determined by the insurance professional.
|In either example, she can deduct the premium payments annually as a charitable contribution.
Do you have any questions about setting up a new or existing insurance policy with Birthright Israel Foundation as the beneficiary and/or owner? Contact a planned giving expert today and we can help you create a Jewish legacy in support of this life-changing cause.