The Perpetual Annual Campaign Endowment (PACE)

A Perpetual Annual Campaign Endowment (PACE) is a permanent fund dedicated to endowing your gift to the Jewish community through the Jewish Federation of Greater Toledo. 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: Here's how
 

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. The IRA Charitable Rollover provisions make this a particularly attractive way to establish a meaningful gift.

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

For additional information about establishing a legacy gift, please contact Stephen Rothschild, CEO, Jewish Federation and Foundation of Greater Toledo, at 419-724-0372 or stephen@JewishToledo.org.