Note: This outlines one of three basic options for succession planning with JCF.
You can read more about all options at Creating Your JCF Legacy.
Some Fundholders prefer to make impactful legacy gifts directly to their charities, and therefore name charities in lieu of individuals as Successors.
Distribute assets to charity immediately upon your death.
You may recommend that the remaining assets in the donor advised fund be distributed upon your death to IRS-qualified public charities (“Successor Charities”).
As is standard, the named organizations are subject to JCF’s review and approval. In the unusual instance that the charity you designated no longer exists or has lost its tax-exempt status, the distribution can be made among the remaining qualified Successor Charities, or you may leave instructions for alternative Successor Charities. In the event there are no qualified IRS Successor Charities listed in your Succession Plan, JCF will transfer the income and principal remaining in the fund to the JCF Special Gifts Fund and issue grants to projects in the Jewish community of New York in your memory. JCF reserves the right to limit the number of Successor Charities based on fund balance, and to set a minimum grant amount for Successor Charities.
If funds are received as a bequest to JCF to be distributed immediately to one or more charities, JCF will take the customary annual fee.
Tip: We recommend reviewing and/or updating your Succession Plan every few years to ensure we have updated contact information for your Successors and that your plan still accurately reflects your wishes.
Distribute fund assets over a short period of time.
Some Fundholders prefer not to grant out the entire fund balance immediately, instead choosing to support their favorite charities for a period of time after their death, typically a maximum of 10 years. In addition to the list of charities, you must indicate the amount or percentage for each charity, and recommendations for the fund 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 following the guidance provided in the Succession Plan. Authorized Parties may not change the Succession Plan.
Create an endowment-style Succession Plan.
Funds for Successor Charities with balances of $1 million and above may be structured as an endowment where only the income is distributed, or you may distribute both the principal and the income. We recommend that the endowment fund be set up to distribute all charitable assets within 10 to 20 years.
Questions about estate planning and donor advised funds?
We would be happy to assist you.
Succession Story:
Harry and Eve
Support your favorite charities until your fund balance depletes.
Harry and Eve know that their children have already funded their own donor advised funds, so Harry and Eve decided to name their three favorite charities as Successors: their alma mater, a community day care center, and a university in Israel. Their fund has a balance of $40,000 and they are leaving an IRA worth $140,000 to JCF. Instead of distributing the entire balance immediately upon their deaths to the Successor Charities listed, they have asked JCF to send $20,000 to each of their charities annually. That way, the charities will continue to benefit from their support for several years after their passing. These grants will continue until the fund balance depletes, at which time the fund will be closed.
Succession Story:
Rachel
Use an endowment-style fund to create long-term impact around the issues most important to you.
Rachel was a successful businesswoman who generously supported two charities during her lifetime. She did not have children but was close with her niece, whom she wanted to engage in charitable giving. Having already made provisions for her niece’s well-being, Rachel contacted JCF to create a plan for her charitable legacy. She supported organizations that provided educational opportunities for women and wanted to expand her giving in this area. Rachel turned to JCF because we were able to connect her with a philanthropy advisor who carefully researched high-performing charities that were complementary to the charities she had already supported. An endowment-style fund was created for the charities, and assets were distributed over 15 years. The advisor helped Rachel put the recognition agreements and the distribution schedules into place. A separate JCF donor advised fund was created for her niece, giving her the freedom to support the charities about which she is passionate.