Glossary of Terms
Create a Jewish Legacy
A testamentary gift of personal property, which can be governed by your will or designated in your IRA. It can also be created in a Charitable Gift Annuity (CGA) or Charitable Remainder Trust (CRT). Click here for sample bequest language.
Property held by a taxpayer (e.g. house, car, stocks, bonds) is considered capital assets for federal income-tax purposes. However, property that the taxpayer creates, such as business inventory, is considered ordinary-income property, not capital-gain property.
The gain (or profit) realized on the sale or exchange of a capital asset.
Charitable Gift Annuity (CGA)
A contract between an organization and a donor. In exchange for an irrevocable gift of cash or securities, the Foundation agrees to pay the donor, or someone of the donor’s choosing, a fixed amount for life. After the donor’s lifetime, the remaining principal in the Charitable Gift Annuity becomes a bequest and can establish an endowment fund.
Charitable Remainder Trust (CRT)
A trust that pays to one or more individuals, at least one of which is not a charity, for a specified length of time then leaves the remainder of the trust to a designated charity.
Donor Advised Fund
Established by agreement between the Jewish Community Foundation of Northeast Florida and the donor, in consideration of an irrevocable contribution of money or property to the federation/foundation. The assets in a Donor Advised Fund are owned by the Foundation. The donor and designated advisors may recommend distributions from the fund to public charities, but the Foundation has the final authority to approve or reject the grant recommendations.
A fund held in perpetuity to distribute annually to a charitable cause; for example, a Lion of Judah Endowment (LOJE) or a Permanent Annual Campaign Endowment (PACE). Can be restricted or unrestricted.
IRA (Individual Retirement Account)—Traditional
An investment account in which a person can set aside income up to a specified amount each year and usually deduct the contributions from taxable income, with the contributions and interest being tax-deferred until retirement. An IRA is a type of Pension Plan.
Until December 31, 2009 only: If you are 70½ or older, you can establish or increase a bequest by making a gift to your favorite charity of up to $100,000 per year directly from your IRA, with no tax consequences. Contact your IRA trustee to make a direct distribution to puvlic charities.
Insurance that guarantees a specific sum of money to a designated beneficiary upon the death of the insured or to the insured if he or she lives beyond a certain age.
An arrangement for paying death, disability, or retirement benefits to employees. Payments into the plan are ordinarily a tax-deductible expense for the firm, but any contribution by employees may or may not be deductible on personal tax returns. Likewise, retirement benefits paid to employees will be wholly or partially taxable. (Also see IRA).
A Hebrew phrase that literally means "repairing the world." It is important in Judaism and is often used to explain the Jewish concept of social justice. Some Jews believe performing mitzvot are performed moves the world closer to perfection.
Although commonly translated as "charity," the word "tzedakah" is based on a root meaning "justice." It is considered an obligation commanded by God of all Jews, regardless of financial standing, and is one of three acts, along with repentance and prayer, that gain forgiveness of sin.
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Create A Jewish Legacy Jacksonville is sponsored and presented by the Jewish Community Foundation of Northeast Florida and is a pilot program of the JFNA. It is a collaborative effort of our area synagogues and Jewish agencies.