A donor advised fund is an efficient way to ensure that the charities you care about will be supported for years to come. It is also a meaningful way to introduce future generations to the joys of charitable giving, and an excellent tool for estate planning.
JCF affords you the opportunity to create a long-lasting legacy of charitable giving. There is no limit to succession on JCF funds, as long as there are still assets in the fund. Each subsequent generation may name their own successors. Successor election(s) can be changed by Fundholders at any time prior to the death of the last remaining Fundholder. You may leave assets to JCF through your will; however, you may not establish a succession plan for an existing donor advised fund through your will. All succession plans must be submitted in writing using our Appointment of Successors Form and approved by JCF during your lifetime.
3 Options for Creating Your Legacy:
Individuals: Designate your heirs or other loved ones as Successors
Charities: Recommend that the assets in your fund go to one or more IRS-qualified public charities
Both: Divide the remaining assets in the fund between options 1 and 2 above
Designate Charities as Successors
You may recommend that the remaining assets in the fund be distributed upon your death to IRS-qualified public charities. The named organizations are subject to JCF’s review and approval. If a named organization is no longer approved by JCF, we will make grants to the alternate charities if you have provided this information and these charities are still qualified. If not, we will transfer the income and principal remaining in the fund to the JCF Special Gifts Fund. JCF reserves the right to limit the number of Successor charities based on fund balance. In addition to the list of charities, you must provide JCF a timetable for making grant distributions and indicate the amount or percentage for each charity, and recommendations for the asset allocation. JCF can act as the fund’s administrator, or you may name an Authorized Party with the authority to make recommendations for investment allocations and sign grant recommendations based on the guidance provided in the succession plan. Authorized parties may not change the succession plan. Funds for successor charities with balances of $500,000 and above may be structured like an endowment where only the income is distributed, or you may distribute both the principal and the income.
Designate Individuals as Successors
You may indicate in your succession plan whether individual successors are to act independently on one fund, or if the assets should be divided equally to establish separate funds for each Successor (minimum balance of $5,000 required per Successor to establish new funds). JCF may limit the number of Successors who will participate on a single fund. If Successors fail to respond to the request to complete and submit a Successor Transition Form within one year of receiving the request, JCF reserves the right to transfer the fund balance to the JCF Special Gifts Fund to make grants in memory of the former Fundholders.
If There Are No Successors
If there are no Successors or successor charitable organization on file, then upon receiving notification of the death, JCF will transfer any remaining assets in your fund to the Special Gifts Fund.
Complex Succession Plan
If you would like assistance developing a more complex and customized succession plan that meets your long-term philanthropic objectives, please contact us.
Bequests to Your Fund
You may designate the Jewish Communal Fund (and specify your fund, or the JCF Special Gifts Fund) as the charitable beneficiary of a will,* an IRA, a 401(k) plan, a charitable remainder trust, or life insurance policy. You may terminate a Private Foundation by granting all remaining assets to your JCF fund (check with your attorney for termination requirements and filing instructions).
You do not have to currently be a JCF Fundholder to establish a Deferred Fund from your estate. Click here for more information.
If you would like more information about how a donor advised fund can play a critical role in your estate planning, please contact us. It is important that you also consult your tax or legal advisor when creating a testamentary gift, trust, or other planned gift.