Supporting Foundations

By creating a supporting foundation aligned with UJA-Federation, you can involve family members in grantmaking, investments, and foundation management while enjoying potentially favorable tax benefits. With decades of experience, UJA-Federation professionals can assist you in the complexities of foundation administration. Your supporting foundation can exist in perpetuity, providing an enduring legacy for you and your family.

• Elect your own successors.
• Include younger generations in the benefits of giving.
• Participate in decisions concerning grants, investments, and management.
• Avoid administrative burdens by relying on UJA-Federation professionals.

Make Use of Our Expertise

Donors may contribute cash, appreciated property, or non-readily marketable assets to establish a Supporting Foundation. Unlike private foundations, which have strict limitations on tax deductions, Supporting Foundation contributions are subject to public-charity deduction limitations of 50 percent of the donor's contribution base for cash and 30 percent for appreciated property. In addition, gifts of appreciated securities are deductible at their full fair-market value. Also, unlike private foundations, there is no excise tax on net investment income. Supporting Foundations are, in addition, not subject to the restrictions on investments and minimum-distribution requirements of private foundations.

Each Supporting Foundation is separately incorporated under New York law and has its own board of trustees that comprises individuals selected by the donor, as well as members selected by UJA-Federation. This voice in the foundation's board guarantees the donor considerable flexibility in the ability to make recommendations to the board as to grants, investments, and management. Because both classes of trustees continue to elect their own successors, a Supporting Foundation exists in perpetuity, providing an enduring legacy for the donor and his or her family and a significant means of involving future generations of the family in Jewish philanthropy.

Each Supporting Foundation can make grants to any agency or program that fits within the broad purposes of UJA-Federation, both domestically and overseas. In addition, the board may vote to distribute principal as well as income. UJA-Federation professional staff assists the donor and the foundation board in reviewing grant proposals, sees to the preparation of all necessary Federal and New York tax and legal filings, and otherwise administers the foundation.

UJA-Federation professional staff assists the donor and the foundation board in reviewing grant proposals, sees to the preparation of all necessary Federal and New York tax and legal filings, and otherwise administers the foundation.