Gifts of Securities & Properties

Now there's a way to achieve your financial goals while helping Jewish National Fund (Keren Kayemeth LeIsrael), Inc. (JNF) meet the goals of a nation -- the land of Israel -- on behalf of Jewish people everywhere.

A donation of appreciated securities or property, such as stocks, bonds, mutual funds, or real estate is a cost-effective way to help JNF continue our major projects in ecology and afforestation; water conservation; building roads, parks and playgrounds; education; research and development; and tourism and recreation throughout the land of Israel.

What is a gift of appreciated property?

As lifestyles change, investment priorities often change as well. The stock or mutual fund you purchased for growth probably has performed quite well and has grown in value. However, this growth may mean significant capital gains taxes when you are ready to liquidate your investments. Delaying the capital gains taxes by holding on to your investments may mean an even larger estate tax burden for your heirs. A gift of these assets to Jewish National Fund can provide you with a much more favorable alternative, including such benefits as:

• A federal income tax charitable deduction for the full fair-market value of the securities if you file an itemized return (the securities must be held at least a year and a day to qualify).
• Elimination of the capital gains element in the gifted property and any sales commissions that would have been payable upon the sale of the assets.

Click here to read further information on Tax benefits for Estate Planning.

Deduct up to 30% of your adjusted gross income each year

A contribution of appreciated assets creates an income tax deduction equal to their full fair market value. IRS regulations, however, limit the amount of the deduction you can take using appreciated assets to 30 percent of your adjusted gross income. If you can't use the entire deduction in one year, you may carry forward your unused deduction for a period of 5 years.

Example:
Mr. J is in the 38.6% income-tax bracket and owns appreciated securities currently valued at $100,000, which he purchased in the 1970s for $50,000. He wishes to make a donation to JNF to establish a forest in memory of his parents. Mr. J donates the securities to JNF and realizes a $100,000 charitable deduction that saves him $38,600 in income taxes (38.6% of $100,000). Additionally, Mr. J avoids the potential capital gains tax on the $50,000 appreciation for further savings of $10,000 (20% of $50,000). Mr. J's net cost of the $100,000 gift is only $49,400 (or $100,000 less $38,600 less $10,000).

How is a securities gift valued?

Your gift of publicly-traded securities is valued at its fair market value (the average between the high and low prices) on the gift date. Appraisals are required for gifts of more than $10,000 in non-publicly traded securities. You will need IRS Form 8283 to claim a deduction in any year your total non-cash gifts to all charities exceed $500.

How do I transfer my securities to JNF?

Simply instruct your broker to wire your stocks or bonds via Depository Trust Company (DTC) directly into JNF's brokerage account. The DTC instructions are:

Sanford C. Bernstein & Co., LLC
Account for Jewish National Fund
Account #039-27044 DTC# 013
Please also forward a copy of the authorization letter you send to your broker or bank officer to:

JNF
Attn: Director of Financial Services
516-678-6800, extension 106
78 Randall Avenue
Rockville Centre, New York 11570

Let JNF know the intended purpose of your gift. Once the securities have been transferred, your broker should immediately advise JNF's Director of Financial Services at 78 Randall Avenue, Rockville Centre, NY 11570, 516-678-6800, ext. 106. Your gift of securities is complete on the date the securities are deposited into JNF's account.

Can I donate mutual fund shares?

Yes. It is a simple process of re-registering the funds in JNF's name. Send a letter that is medallion signature-guaranteed to your mutual fund company instructing them on the transfer. JNF will then open an account with the mutual fund company so that the shares can be transferred properly. The charitable deduction for a gift of mutual fund shares is the net asset value per share on the date of the gift.

What if I hold stocks or corporate bonds in paper certificate form?

If you own stock certificates or corporate bonds, send the unendorsed certificate via certified or registered mail. In a separate envelope, also send a completed and signed stock power and have your signature medallion-guaranteed.

Click here to download printable form. Your stockbroker or the commercial bank with which you do business can help you obtain a signature guarantee. The certificate and signed power, along with a note detailing the purpose of your gift, should each be sent by way of separate certified mail to:

JNF
Attn: Director of Financial Services
78 Randall Avenue,
Rockville Centre, New York 11570

Click here to download a stock/bond power. Fill in only the description of the security with the certificate or CUSIP number and sign your name exactly as it appears on the face of the certificate. Remember that your signature must be medallion-guaranteed. You may also choose to personally deliver the securities and the stock power to a JNF office.

How do I transfer State of Israel Bonds?

If you wish to donate State of Israel bonds that are in your name, please contact JNF's Director of Financial Services at 516-678-6800, ext. 106 so that we may send you the proper forms, such as an Assignment Separate from Bond form and an Affidavit of Domicile in the event one or more of the donors is deceased. We will also instruct you on which other steps you need to take. To speak to a JNF Planned Giving Specialist, please call (800) 562-7526.