What is TOP and how can it help you?

By Ellen Weiss, TOP Jewish Foundation Executive Director

You may have heard about TOP and are curious to learn more. In 1980, several Florida Jewish Federations (Tampa, Orlando and Pinellas) formed TOP to manage their endowment and investment funds and provide a valuable resource to donors and nonprofits in the community. A few years ago, TOP expanded and proudly serves as the foundation department of Jewish Federation of Greater Naples. TOP manages the Federation’s endowment and investment funds while helping donors and nonprofits protect the financial future of the greater Naples Jewish community.

Here is a snapshot of how TOP can help you and the organizations most important to you.

TOP’s philanthropic advisors meet with you to discuss your philanthropic goals. We discuss your shorter-term giving options using assets such as appreciated securities, which will let you take advantage of immediate tax benefits. If you prefer, TOP will furnish longer-term giving strategies and explain how to use assets, such as life insurance and business interests, to make a difference over time while still minimizing taxes. Individual donors have the option to establish several different types of funds at TOP that can benefit the Federation and other nonprofit organizations of most importance to you.

Here is a snapshot of options to support our community.

Donor Advised Funds (DAFs)

Do you have appreciated assets and would like to avoid paying higher taxes? A DAF, also known as a philanthropic fund, is commonly thought of as a charitable checking account. A donor makes a gift in the year they would like to receive the tax deduction, then can make distributions to nonprofits at any time.

DAFs accept several types of gifts beyond cash, such as appreciated securities, real estate and business interests. Opening a fund is easy and requires minimal paperwork, and TOP does all the work to ensure that the grantees are eligible 501(c)(3) charities and that distributions are sent in a timely manner. DAFs can be established with an initial gift of $10,000; for donors under the age of 40, DAFs can be started with $5,000. Donors appreciate the flexibility and low cost of DAFs and often use them in place of, or in concert with, a private family foundation.

Family Philanthropy program

Would you like to teach your children and grandchildren how to be charitable? TOP’s philanthropic advisors offer donor families a rewarding experience by providing an individualized program to understand how your family would like to give together. During this customized program, we meet with you and family members to learn together, have fun, share values and generate a plan to impact our community.

Endowment Funds

Would you like to help the Jewish community thrive now and in the future? An endowment fund is established to perpetually benefit the nonprofit(s) that you most care about. For example, several donors have established a Lion of Judah Endowment to benefit the Federation in perpetuity. Endowments can be set up now to document your wishes and be funded with current assets or with an afterlifetime gift. A specific portion of the fund is distributed to the nonprofit or multiple nonprofits annually, while the balance grows, ensuring that the endowment lasts in perpetuity. Endowments can be established with a minimum donation of $5,000.

Designated Funds

Would you like to use your required mandatory distribution (RMD) to help the community instead of paying higher taxes? This type of endowment fund was specifically created as a strategy to accept IRA rollover gifts, allowing donors to make a qualified charitable distribution, like an RMD, keep the funds invested at TOP and then distribute the funds to several nonprofits over time. When establishing the Designated Fund, the donor is required to determine in advance how the funds will be distributed to their favorite organizations over any defined time period. For example, a designated fund may be created to pay Temple dues, annual Federation campaign gift and annual gifts to any other nonprofits like universities, hospitals and the arts.

Charitable Gift Annuities (CGAs)

Charitable Remainder Trusts (CRTs) These funds are established to provide an annual income to you for life and to ultimately leave a gift to the organizations of your choice. At the same time, CGAs and CRTs provide donors with some significant tax savings as they enable a one-time tax deduction. CGAs and CRTs can also be funded with appreciated assets, which would provide savings on capital gains taxes as well.

TOP is here to help you navigate your many philanthropic options so that you can make an important impact on our community. Feel free to contact me at 813-769-4785 or Ellen@topjewish foundation.org or attend an upcoming webinar, www.topjewishfoundation.org/ webinars/, to explore ways you would like to help perpetuate our community.

TOP Jewish Foundation is a department of the Jewish Federation of Greater Naples.