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THE BENEFITS OF A POOLED INCOME FUND GIFT
By Amy Corton
Planned gifts play an important part in growing the Congregation Beth Israel Endowment Fund, which in turn generates future income for the synagogue. Through a Pooled Income Fund gift you can create significant future gifts to Congregation Beth Israel (CBI) that generate income for the remainder of your life. By becoming a member of the Dor l' Dor Society and participating in the Pooled Income Fund with the Jewish Community Foundation (the Fund) you can make a gift to CBI that benefits you with an income for life and leaves a lasting legacy to CBI.
You can contribute cash, securities or certain types of property to the Fund and enjoy quarterly interest payments. An initial gift to the Fund can be as little as $5,000. Gifts to the Fund are collectively invested to produce income that is shared by all contributors in proportion to their gifts to the Fund. Upon your death, CBI receives the value of your share of the Fund. In return for your donation, you receive a federal income tax deduction based on the difference between the fair market value of your contribution and the present value of your income interest, and, if you use appreciated securities to fund your donation, any capital gains taxes are avoided.
You receive income for life based on the investment return earned by the Fund that varies from year to year. The Fund's investment performance has ranged from 6.0 percent to 7.03 percent over the past five years. If you take into account your income tax deduction, the actual rate of return is even higher.
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Here is an example of how a gift to the Fund can benefit a donor. Mr. and Mrs. Goldstein, ages 70 and 75, purchased securities for $15,000, which are now worth $30,000. The annual dividend income had been approximately $690. The Goldstein's contribute the securities to the Fund, and the Fund sells the shares. Mr. and Mrs. Goldstein avoid capital gains taxes on the $15,000 appreciation and would be able to take a current federal income tax deduction of approximately $10,000. Assuming 6% earned by the Fund on the gift, the Goldsteins would receive $1,800 annually, a significant increase in their income. They have made a gift to help secure the future of CBI because upon their death, they have designated that their portion of the Fund be donated to CBI.
Please consider making a gift to the Fund and thereby joining other members of the Dor l' Dor Society in securing the future of Congregation Beth Israel.
Shalom ,
Amy Corton
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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