FAQs » UJA-Federation of New York

(How secure are planned giving investments? How are they invested?) They have proven to be very secure. The assets from your gift are invested in pooled funds holding stocks and bonds and are under the general supervision of the Investment Committee of UJA-Federation of New York.
(Who manages the money?) Professional investment managers selected and monitored by UJA-Federation's Investment Committee.
(What fees are charged?) There are no fees charged by UJA-Federation for the creation, management or administration of these plans.
(What is meant by the term "tax-benefits"?) The Internal Revenue Code allows individuals who itemize their deductions to claim a deduction for gifts to charity. Tax benefits are generally the cash savings generated by such deductions. In other words, the tax benefit is the cash you save by having reduced your taxable income and thereby having decreased your income tax liability.
(What is the difference between a "tax deduction" and "tax-free income" as they relate to my taxable income?) A tax deduction reduces your taxable income and, therefore, your total tax liability. Tax-free income, such as a portion of charitable gift annuity payments or the income from tax-exempt bonds, is not included in taxable income.
(How do you calculate the tax deduction? For example, if I give UJA-Federation something worth $10,000, why don't I get a deduction for $10,000?) The IRS sets out a series of actuarial factors and calculations that we follow to determine your income tax charitable deduction. Where an individual has retained the right to receive income from a charitable gift, the amount of the deduction is reduced by the actuarial value of that income stream.
(But I want my children to inherit something; if I give it away, how will they get it?) UJA-Federation offers plans by which the value of what is contributed to charity may be replaced for the benefit of heirs.
(What is a life-income plan and how does it work?) In a life-income plan, lifetime income is obtained in exchange for an irrevocable charitable gift. The gift may be made in trust (a charitable remainder trust) or as a direct contractual relationship with UJA-Federation (a charitable gift annuity).
Download our Charitable Gift Annuity Application
(Can I establish a Charitable Remainder Trust or Charitable Gift Annuity for the duration of my life and my child's?) That can only be determined on an individual basis because it involves a calculation of the joint life expectancy of the income beneficiaries.
(Can I include anyone else?) Yes. Most commonly, a spouse, but almost anyone may be named to receive income from a life-income plan. Be aware, though, that gifts of income to anyone other than a spouse may have gift tax consequences.
(What annuity rate would I receive?) That depends on the age(s) of the income beneficiary(ies) and the type of gift created. The rate will be calculated on key variables that you supply - your age, the age of any other beneficiary(ies), and the type of gift you want to create.
(How do your gift annuity rates compare with those of other charities?) Our rates are generally competitive with those of other charities.
(How much do I have to put in?) To make our programs accessible to as many interested individuals as possible, our minimum gifts are among the lowest in the country - $10,000 to create a charitable gift annuity and $50,000 to create a charitable remainder trust.
(Can I get monthly payments?) No, quarterly is the most frequent payment option.
(How do I receive my payments?) Payments can be mailed to you, mailed to your bank, or deposited electronically in your bank account.
(Can I create a life-income gift in my will?) Definitely.
(What other programs do you offer?) Our department offers the entire range of planned giving options, from charitable lead trusts to supporting foundations and endowment funds. We also advise donors on gifts of unusual or illiquid assets.
(Are donations of cash or stock the only options?) For a charitable gift annuity, yes; but in many other circumstances, real property, tangible personal property, and other assets, such as partnership interests, may be used to fund a life-income or other gift.
(How can I benefit my children and grandchildren?) Children and grandchildren may sometimes be included as beneficiaries of a life-income gift or a charitable lead trust (although doing so may result in gift-tax consequences). They may also be named as beneficiaries of the insurance policies as part of a wealth-replacement strategy.
(Can I direct the remainder of my gift to a beneficiary of, or an organization affiliated with, UJA-Federation of New York?) Generally, yes.
(Can I restrict the purposes for which UJA-Federation uses my gift?) Yes, in certain circumstances.
(Why is a charitable planned gift better than other investments?) Each gift plan must be individually evaluated to determine its appropriateness for your circumstances, goals, and objectives, of course, but if caring for our community is among them, you may indeed benefit by creating a planned gift to UJA-Federation of New York.
Sample Legacy Language

General Bequest
"I give and bequeath the sum of $x (or x% of my residuary estate) to United Jewish Appeal-Federation of Jewish Philanthropies of New York, Inc., to be used in support of its general charitable purposes."

Bequest to Endow a Campaign Gift "I give and bequeath the sum of $x (or x% of my residuary estate) to United Jewish Appeal-Federation of Jewish Philanthropies of New York, Inc., to be used to create the x Fund, an endowment fund, the income of which is to be paid to the Annual Campaign of UJA-Federation of New York, Inc."

Bequest to Be Used in Israel
"I give and bequeath the sum of $x (or x% of my residuary estate) to United Jewish Appeal-Federation of Jewish Philanthropies of New York, Inc., to be used in support of its charitable purposes in Israel."

Bequest to Be Used in New York
"I give and bequeath the sum of $x (or x% of my residuary estate) to United Jewish Appeal-Federation of Jewish Philanthropies of New York, Inc., to be used in support of its charitable purposes in the greater New York metropolitan area."

Bequest Benefiting a Specific Program or Agency
"I give and bequeath the sum of $ x (or x% of my residuary estate) to United Jewish Appeal-Federation of Jewish Philanthropies of New York, Inc., to be used by it for... (e.g., programs for the elderly, the Sol Goldman YM-YWHA)."

Bequest Perpetuating a Family Name
"I give and bequeath the sum of $x (or x% of my residuary estate) to United Jewish Appeal-Federation of Jewish Philanthropies of New York, Inc., to be used by it to create the x Family Fund, an endowment fund, the income of which is to be used for the general (or restricted) charitable purposes of UJA-Federation of New York, Inc."

The material contained on this web site is for informational purposes only and should not be construed as legal or other tax advice. Individuals are urged to consult their professional advisors when considering Planned Giving transactions. Contributions to UJA-Federation are eligible for the maximum income and estate tax charitable deductions available for gifts to a public charity.

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