WHAT IS AN ENDOWMENT? WHY IS IT IMPORTANT?
By Ann Campbell
How many of us would ever feel secure without planning for retirement? How many of us have estate plans that include the transfer of our assets to our loved ones to ensure their future? Building an endowment for our synagogue is very much the same kind of planning.
An endowment fund is a vehicle in which many different kinds of assets (appreciated securities, real estate, cash and more) can be irrevocably transferred and then invested to generate income for CBI in perpetuity. The income from the fund is used to help pay for staff positions, programs or capital needs as designated by the donor while the principal, the originally invested sum, remains untouched. Uncle Sam thinks that giving a gift to endowment in the form of appreciated assets is such a magnanimous gesture that he will even waive the capital gains tax and still allow you to take a deduction. You'll be reading more about that in future articles.
A strong endowment will guarantee that exciting and inspirational programs will be possible without major fee increases. A strong endowment will ensure that we will continue to be blessed with the highest level of clergy and professional staff – and dollars generated from a growing endowment will allow us to continue offering educational programs of excellence to our Preschool, Day School and Religious School children while keeping tuition at reasonable levels.
You see, endowment income makes up the difference between what we can charge in memberships and fees, and the true cost of operating these programs and our facilities. As we plan for the future of our families, so must we also plan for the stability and programming of Congregation Beth Israel. It is incumbent upon us to ensure that our Synagogue exists for our families now and for generations to come – and that is exactly the purpose of endowment.
L'Shalom,
Ann Campbell
If you are interested in a confidential appointment to explore ways in which you may wish to make an endowment gift, please contact Stuart Simmons, Executive Director, at 858-535-1111 ext. 3113.
Merle Brodie, a member of our congregation and our Endowment Committee, serves as Director of Philanthropy at the Jewish Community Foundation. If you are interested in learning more about tax saving strategies through charitable giving, please call Merle at 858-279-2740.
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