What is an endowment fund?
An endowment is a gift that the Jewish Community Foundation holds in perpetuity. The gift, or the proceeds from the sale of the gift, is held and invested with the other funds of the Foundation. Each year a portion of the yearly investment return is used for grant making. The balance remains in the fund. A donor who creates an endowment today can be confident that it will grow and continue to support the Greater Hartford Jewish community for years to come.

Can an endowment gift be unrestricted?
Yes. Unrestricted endowments provide the maximum flexibility in meeting the emerging needs of our community. Donors who create unrestricted endowments recognize that the needs and challenges of the future may differ from those of today.

Can an endowed gift be directed to a specific area?
Yes. The Jewish Community Foundation offers donors the opportunity to have their names or the name of a loved one linked to an agency, program or charitable area in which they have a special interest.

Can I endow my annual gift to the Jewish Federation of Greater Hartford?
Yes. You can easily create a Perpetual Annual Campaign Endowment (PACE) Fund or Lion of Judah Endowment (LOJE) Fund that will generate income to provide general support of the Jewish community for years to come.

How are the endowment funds held by the Foundation managed?
The endowment funds held by the Foundation are pooled for investment purposes. The Foundation's Investment Committee and Board of Trustees strive to build capital and preserve the purchasing power of the pooled investment portfolio over the long term.

Is a minimum gift required to establish an endowment fund?
Yes. To ensure that the dollars generated by an endowment fund are sufficient to carry out a donor's intent, both now and in the future, the Foundation has established minimum gift levels for the different categories of endowment funds it administers. Donors can build up funds through contributions made over time. Once gifts from the donor reach the applicable fund threshold, they will be generate grant dollars for distribution.

What types of assets can be used to create an endowment fund?
A gift of cash is the easiest and most direct way to establish an endowment fund. Donors often contribute appreciated securities (including mutual fund shares) to establish an endowment fund because of the additional tax benefits that can be derived. As a general rule, no capital gains will be realized on the transfer and an income tax charitable deduction equal to the value of the transferred securities may be taken, provided the security has been held for more than 12 months.

Can I create an endowment fund as part of my estate plan?
Donors can establish endowment funds through a will, trust, insurance policy or retirement plan beneficiary designation or through a planned gift arrangement. For more information about bequests and life income gifts, click here.