Legacy Planning

What is legacy giving? It’s all about securing the future of Magen David Sephardic Congregation..

Planned Giving provides a permanent donor legacy for our synagogue that outlasts all other forms of giving. Generous gifts are prudently invested to secure the future of MDSC or generate income.

We cannot depend on dues and fees alone to fully fund MDSC from generation to generation. Planned Giving creates opportunities for us to educate the next generation. It will open new doors and create new experiences and help assure that our congregation will grow and flourish. It is a fact that most organizations secure their future by legacy giving.

Contributions may be made in many forms: cash, bequest, securities, real estate, life insurance or in trust. Your financial advisor can help you determine the best way for you to contribute to MagenDavid Sephardic Congregation or call the synagogue office and we will put you in touch with one of our Professional Advisory Members.

BEQUEST: One of the most common planned gifts is when a donor bequeaths a gift to MDSC in a will or trust. The gift may be designated as (a) percentage of the donor’s estate, (b) specific dollar amount or description of property, (c) residual of the donor’s estate, or (d) contingent upon a certain event happening. Estate taxes can be reduced by the value of the gift to MDSC.

Cash Donation: An immediate cash donation is made to the MDSC is the most widely utilized method of helping. Real estate, personal property, securities, e.g. stock, etc. can be legally transferred to the MDSC. In most cases, an income tax deduction is allowed for the full market value, and capital gains taxes are avoided, reducing the cost to the donor. A donor deeds his or her personal residential property to the MDSC. While the donor is still living, he or she has a legal interest in the life estate with full rights to live or rent or to sell those rights. The donor receives an immediate tax deduction for the remainder interest value of the estate.

Life insurance is, next to cash, perhaps the most common method for funding charitable donations. Life insurance may serve both as a current outright gift and/or a planned gift. Donors may donate an old cash value policy that no longer serves the purpose for which it was originally purchased. Also, donors may purchase a new policy, naming the MDSC as owner and beneficiary of the policy. Here, the donor contributes the premium amount to the Center and receives a tax deduction for the amount of the payment. Wealthy donors may opt for the premium financed life insurance program, naming the MDSC as the beneficiary for a portion of or all of the death benefit.

Gift of Retirement assets.(such as a 401K)A donor makes a gift to the MDSC and receives an immediate income tax deduction. At a later date, usually retirement, the donor begins receiving income. Because the principal compounds between the date of the gift and the first date when the donor receives income, the amount of income can be significant and at a much greater rate than that of the standard charitable gift annuity.

Charitable remainder (unitrust and annuity) The donor makes a gift to the MDSC, and receives income from the gift for the rest of his or her life. The trust assets become the property of the MDSC upon the donor’s death, or in a pre-established time period. Additional contributions can be made annually to the trust. Income tax deductions for the donor are based upon current value of remainder interest going to the MDSC. The Unitrust can be structured more flexibly than the annuity trust, because later contributions and contributions of appreciating assets will increase the income available, and could be timed to increase the payout when the donor has retired and is in a lower tax bracket. The annuity trust is similar to the “Charitable Remainder Unitrust” except that (a) the donor receives a fixed income from the gift for the rest of his or her life, (b) the income amount is based upon the original value of the trust’s assets, and (c) additional contributions cannot be made.

Charitable lead trust: MDSC receives income payments from the Lead Trust for a given number of years or life of the donor. At the end of the trust term, the assets of the trust are returned to the owner or his or her designee. This allows the transfer of assets to children while greatly reducing gift taxes.

The bottom line is that there are many ways set up a successful legacy giving plan. All legacy donors will be honored with a plaque in the foyer of MDSC. Please call today to set up your giving plan.