Whether as a pledge of a planned gift, or as a donation or set of donations over time during one's lifetime, pledges and gifts by members of the Morashah Society of all amounts are accepted to the RA's Legacy Fund. Gifts of over $10,000 may establish a named fund; gifts over $25,000 may establish a named fund dedicated to a specific purpose. The Legacy Fund is invested to generate income plus principal growth; unless a donor establishes a "spend down" policy for the fund, only a sustainable percentage will be used annually from a named fund.
Many donors join the Morashah Society with a promise of a planned gift, but may also decide to begin donating to their named fund during their lifetime to see the benefit of their support the Rabbinical Assembly's work, and to realize tax benefits.
Sources of legacy gifts:
- Bequest by Will– A bequest is one of the easiest and most common options for legacy giving as it costs the donor nothing today, and it is completely revocable. The donor simply designates the RA in their will.
- Cash Gifts – These gifts can be used to create/grow an endowment.
- Gift of Retirement Assets – If you are over age 70 1/2, this giving option provides multiple tax advantages.
- IRA Designation – Recent federal tax changes also increase the tax burden to family members inheriting IRAs, so designating these accounts to charity are often an attractive option.
- Life Insurance – Gifts of life insurance are one of the most impactful (and underutilized) giving options. (This is a great option for young Rabbis who can purchase life insurance for less; and for older donors who wish to designate a portion of their life insurance.)
- Marketable Securities – Gift of stocks, bonds, or other appreciated securities gifts avoid capital gains and provide an immediate charitable deduction based on current market values.
- Charitable Lead Trust – This giving strategy generates annual gifts for one or more charitable organizations for a term of years and upon the donor's death or the term, it goes back to the donor or his/her beneficiaries.
The RA does not offer financial or tax advice. The above descriptions are merely an explanation of different ways people leave legacy gifts. Please talk to your financial and legal advisors when setting up your estate plans.