November 2015
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Want to Avoid Year-End Craziness?
CF Can Help
by Daniel Staffenberg, Executive Director
It’s the afternoon of December 21. It’s the busiest time of the year, but this year seems so much worse. You feel the pressure of family, holidays, and finishing up year-end business.
Moshe's Law: Waiting for you at home are piles of year-end bills, charitable donations to be made, and some year-end tax issues your accountant wants you to address. There has to be a better option, a way you can make the charitable impact you want and avoid all these hassles. You call your advisor to share your misery. She is happy to listen but adds to the stress when she reminds you that months ago she suggested making a large charitable gift by year-end to offset some of the taxes levied on what was a very good year. Good idea, but where to give?
In the past you have supported Jewish Federation, Rutgers, and your synagogue annually out of your checkbook. But this is going to be a sizeable gift, so it makes sense that the funds come from appreciated securities. Furthermore, you don’t really want to give these funds away carte blanche. You want reassurance that your philanthropic wishes and vision are carried out properly. On top of that you’ve been discussing with your partner how to engage your family in the discussion… but how is this even possible by the end of 2015? You look again at the calendar, knowing that neither the IRS nor your advisor will give you slack on that year-end date. This is where Jewish Community Foundation of Greater MetroWest NJ can help.
This frustrating end-of-year scenario can lead to many sleepless nights, but I’d like to suggest a powerful alternative: a Donor Advised Fund (DAF) with the Jewish Community Foundation of Greater MetroWest (JCF).
Underlying the popularity of DAFs as a strategy of family philanthropy is the fundamental concept of financial capital. Basically, an individual’s estate (income plus net worth) consists of two parts:
- Family capital is the wealth an individual can spend between now and the time they die and what can be given to heirs. Family capital is the wealth that families keep.
- Social capital is the wealth that can’t be kept, spent before death, or given to heirs. The government has mandated that a significant portion of every individual’s wealth be used to support the general welfare of the country. Most individuals give up their social capital in the form of taxes. But when they do, they also give up control of that wealth. Many people have little understanding of where our tax dollars go, and virtually no control over how these dollars are used.
Traditionally, individuals could distribute their social capital without giving up control of its use by establishing a private foundation. But private foundations are complicated, inflexible, expensive to establish, require IRS approval (which can take months), very public, and difficult to manage. On top of all that, the tax advantages are not as good as those for gifts to donor advised funds.
Fortunately, a Donor Advised Fund (DAF) with JCF is a simple, flexible, and cost-effective way for donors at every level of wealth to practice family philanthropy. It allows you to capture, manage, and distribute most, if not all, of your social capital to charitable organizations of your choice. In so doing, you turn what would have been tax dollars used at the government’s discretion into charitable dollars used by organizations whose missions and values reflect your own. You give up your social capital but retain “virtual control” over its ultimate use.
And because our DAF operates with the resources, support, and the 65 years of experience of JCF, providing all the administrative and reporting services, you and your family can concentrate on the enjoyable and emotional side of philanthropy. The JCF program holds more than $78 million in DAFs and has a strong track record of outstanding customer service and family philanthropic support. In addition, the soon-to-be-launched online investor’s platform will provide additional convenience. This could be your perfect solution!
The end of 2015 is just weeks away, so there is no better time to see if a Donor Advised Fund at JCF is right for you. Contact me at (973) 929-3060, dstaffenberg@jfedgmw.org, or ask a question on the “JCF Greater MetroWest” page on Facebook.
Wishing you and your loved ones a happy, healthy start to 2016.
Best,
Daniel
It's Not Too Late to Donate to your DAF
JCF knows you are looking ahead to the end of 2015, and may want to make a gift to your Donor Advised Fund in order to maximize your tax impact. We are here to help ensure that these donations are processed quickly and efficiently, at year-end and all year.
Did you know that donating long-term appreciated securities directly to JCF, rather than selling the asset and donating the cash proceeds, is one of the easiest ways for donors to add to or open a donor advised or endowment fund? Donors who give securities can take advantage of the applicable tax incentives, which can result in more funds being available for charitable giving.
To make a donation of Securities (Stock and Mutual Funds) please complete the two stock transfer forms available on our website. The first form, “The Broker’s Letter,” provides your broker with the information he or she needs to transfer funds to JCF’s account. The second form, the “Stock Transfer Advice Form,” provides JCF with all of the information we need to properly credit your donation. Visit our website at www.jcfmetrowest. org/StockTransferForms for both forms. Send the completed “Stock Transfer Advice Form” to Beverly Kestenbaum at Bkestenbaum@jfedgmw.org or via fax at (973) 532-0781. Send the “Broker’s Letter” to your broker. The professional team at JCF will handle the rest. You will be notified when we receive your transfer.
If you would like to write a check to be deposited into a fund, please make it out to the Jewish Community Foundation of Greater MetroWest NJ and write the name of your fund on the memo line. You will be notified when we receive your check.
To make a donation via credit card, please call Beverly Kestenbaum at (973) 929-3063 or visit www.jcfmetrowest.org (and click the green “Donate” button at the top of the page).
2015 YEAR-END DEADLINES
December 1 – Mutual Fund transfers must be initiated to be completed by year-end.
December 15 – Donor Advised Fund recommendations are due to Beverly for guaranteed distribution in 2015. (We will continue to process recommendations every day through Dec. 31, but distribution by that time is not guaranteed.)
December 15 – Stock transfers must be initiated to be completed by year-end.
December 30 – Final date for credit card transactions to be processed in 2015.
December 31 – Checks must be postmarked by this date.
If you have any questions, please contact Beverly Kestenbaum at (973) 929-3063 or Bkestenbaum@jfedgmw.org, or your personal JCF Professional account manager.