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A Perpetual Annual Campaign Endowment (PACE) is a permanent
fund dedicated to endowing your gift to the Jewish Community
Federation. A PACE fund is not intended to take the place
of any part of an annual gift; it is instead a lasting legacy
that will continue to make an annual gift to the campaign
in perpetuity on your behalf.
You may create your Perpetual Annual Campaign Endowment through
a variety of vehicles, some of which provide your estate with
considerable tax benefits without the requirement that you
contribute during your lifetime.
These options allow you to perpetuate your commitment to
the Annual Campaign in a way that best achieves your own personal
financial and estate planning goals.
To determine the estimated amount you need to endow your
entire campaign gift, simply multiply your current annual
gift by 20. Alternatively, you may endow a portion of your
gift by establishing a PACE fund with a lesser amount, perhaps
building up the fund through subsequent contributions. Donors
creating PACE funds with a minimum contribution of $200,000
are recognized by membership in the Star of David Society.
Establishing a PACE
There are several ways to fund your PACE:
Gift of Cash/Assets
An outright gift of cash or appreciated assets like stocks
or bonds is the easiest way.
Bequest
A simple bequest in a will is the most common technique for
creating a PACE.
Gift of Life Insurance
A gift of a life insurance policy is particularly appealing
for younger donors because of its reasonable cost and tax
benefit. By naming the Jewish community owner and beneficiary,
the donor may be able to deduct the premiums.
IRA or Pension Plans
IRA and pension plans are subject to high testamentary taxes.
That makes them ideal for transfer in whole or in part to
a charity to create a PACE.
Charitable Income Plan
A Charitable Remainder Trust offers life income payments
with the benefit of a current tax deduction. The remainder
of the trust or annuity can be dedicated to create a PACE.
Tax benefits
All contributions to establish a PACE are tax deductible.
In addition, contributing appreciated assets held at least
a year also avoids the tax on capital gains.
At a glance
- Enables your annual gift to be made in perpetuity
- May be structured in a variety of innovative ways
- Offers tax benefits for you and/or your estate
- Provides resources for organizations that are important
to you
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