Notes from the Endowment Committee

Each of us plays a vital role in nurturing, sustaining and supporting our Beth Sholom B’nai Israel community. We do this in many ways including attendance at religious events, participation in social action and community activities, beautification of our building and grounds, attendance at educational events and working with our youth. Each of us provides support to our synagogue community in our own distinctive way. As the BSBI Endowment Foundation strengthens its relationship with the Jewish Community Foundation of Greater Hartford (JCF) additional methods of financial support may be feasible.

As part of the spectrum of support provided by the BSBI community, financial support is among the most critical elements for sustaining the synagogue community. There are numerous ways to give to the Synagogue. These include leaving a bequest in a will, a gift of life insurance, the donation of an IRA or a gift of appreciated securities or property. Our partnership with the Jewish Community Foundation of Greater Hartford allows us to offer the opportunity to consider more intriguing ways to Leave a Jewish Legacy. The opportunity to establish a charitable gift annuity or charitable remainder trust may benefit the donor as well as the synagogue. A charitable gift annuity (CGA) is a contractual agreement between the donor and the Jewish Community Foundation. This agreement can be of benefit to the donor, BSBI and JCF. An annuity payment is calculated based on the age of the annuitants (single or joint life) and the date of the gift. There is a charitable deduction in the year of the gift and favorable tax treatment of the income as it is paid. Funding the annuity with appreciated securities or property may be particularly advantageous. In exchange for an irrevocable gift, JCF agrees to pay the annuitant a fixed sum for life. The older the annuitant is at the time of the gift the greater the fixed amount JCF is able to pay. BSBI would benefit from any remainder left after the annuity made its payments for life of the beneficiaries. The remainder would become a permanent legacy for the benefit of BSBI in the name of the donor or whomever they designate. Sample returns from new charitable life annuities are far superior to the rates of return offered by bank certificates of deposit.

Example rates based on recent recommendations from the American Council on Gift Annuities: (2017)

Age (single life)     Rate of Return (%)

   60                       4.4

   70                       5.1

   80                          6.8

   90                       9.0

A charitable remainder trust (CRT) is also an irrevocable vehicle into which you transfer assets. In return, you and/or your spouse or designated beneficiary will receive an income for a designated number of years or life. Like the charitable annuity there are initial tax advantages at the time of trust creation and with receipt of yearly income. Furthermore, BSBI would benefit from the remainder.  CRTs can have either a fixed or variable annual payments.

Both charitable annuities and a charitable trust can provide a) supplemental income for life b) significant tax breaks at the time of the gift and every year thereafter and c) legacy support for BSBI. As previously noted, funding the charitable gift with appreciated securities or property has additional advantages.

Anyone contemplating a CGA or CRT should consult with their tax advisors. For further information please reach out to the BSBI Endowment via email at BSBIendowment@myshul.org.