FREQUENTLY ASKED QUESTIONS

Q: What is a donor-advised fund?

A: It is a way for you to make contributions to your favorite IRS-qualified charities - sectarian and nonsectarian - by centralizing your charitable dollars in one convenient location. A donor-advised fund provides many of the advantages of a private foundation without the tax burdens or administrative and reporting responsibilities.

Q: How does it work?

A: It works as follows:

YOU:

• Make an initial contribution of $5,000 in cash or appreciated securities to establish a fund
• Name the fund
• Choose an asset allocation from our selection of investment portfolios
• Recommend grants to IRS-qualified public charities
• Watch the fund generate more charitable dollars as it grows tax-free.

WE:

• Provide tax receipt for reporting your charitable gift
• Invest the proceeds in accordance with your recommendation
• Mail checks to the qualified charities of your choice
• Send you quarterly statements of fund activity and confirmation of grants distributed from your fund.

Please refer to our Policies and Procedures booklet for a more detailed explanation.

Q: What are the advantages of a donor-advised fund at JCF?

A: The advantages are efficiency, flexibility, and cost savings.

1. When you donate highly appreciated securities to your fund, you receive the maximum tax benefits allowed by law.
2. You can contribute one block of securities, which may then be used to make grants to multiple charities.
3. You have the opportunity to time your grantmaking without the pressure of year-end deadlines.
4. The charitable grants made from your fund can either acknowledge you or be made anonymously. The decision is entirely up to you.
5. You have no need to track receipts from multiple charities: We provide you with quarterly and year-end statements summarizing all the activity in your account. And you can view your fund activity online at your convenience.

Q: What types of assets can be donated?

A: We accept contributions of cash or publicly traded securities, including stock, mutual funds shares, or bonds. In the case of gifts of restricted, closely held or Rule 144 stock, or other unusual assets, our policy is to review the proposed gift with counsel. Acceptance of such gifts is at the discretion of the Board of Trustees and may be subject to certain conditions. If you wish to make a gift of restricted or closely-held appreciated securities, kindly call us and we will let you know whether we can accept them.

Q: How are the proceeds invested?

A: The Jewish Communal Fund currently offers 20 investment alternatives, which have varying levels of risk and potential return. Each time you make a contribution to your fund, you have the privilege of recommending how the proceeds are invested, provided that $5,000 is retained in the TempFund.

Q: What are your fees?

A: The fee for services is based on the average daily balance of your fund and operates as follows:

Balances less than $5 million	0.75% (75 basis points) or $150*, whichever is greater
Next $15 million	0.50% (50 basis points)
Any amounts above $20 million	0.10% (10 basis points)

*Any fund with an average daily balance below $20,000 will be charged $12.50 monthly, based on an annual minimum fee of $150. Donors will be notified when their fund balance falls below $250. Fund balances below $180 will automatically be transferred to the JCF Special Gifts Fund and the fund will be closed.

Investment management fees and expenses are deducted directly from the total return of each investment alternative in your fund. Current investment management expenses are listed on our Performance Comparisons of Investment Alternatives.

Other fees such as brokerage commissions (for the sale of securities) or legal fees (e.g., to review a proposed gift of non-marketable assets) may be charged to your fund. In addition, donors may request philanthropic and/or investment advisory services from a list of consultants that the Jewish Communal Fund provides. The fees for these services may be charged to the donor's fund.

Q: How does a donor-advised fund compare with a private foundation?

A: A donor-advised fund offers greater tax advantages, is less costly to establish and maintain, and entails less administration.

DONOR-ADVISED FUND	PRIVATE FOUNDATION
Cash contributions deductible up to 50% of adjusted gross income	Cash contributions deductible up to 30% of adjusted gross income
Appreciated marketable securities deductible up to 30% of adjusted gross income	Appreciated marketable securities deductible up to 20% of adjusted gross income
Closely-held stock deductible at full fair market value up to 30% of adjusted gross income	Closely-held stock deductible at cost up to 20% of adjusted gross income
No 5% annual distribution requirement at account level	5% annual distribution requirement
No excise tax on net investment income	Excise tax is 1 to 2% of net investment income
Choice of anonymity or recognition for grantmaking	Loss of privacy: 990-PF may be viewed on the internet www.guidestar.org
No start-up fees	Start-up fees

Q: When does it make sense to consider a donor-advised fund?

A: When you:

• Give to multiple charities each year and prefer not to track receipts
• Have highly appreciated securities and want to avoid paying capital gains taxes
• Are contemplating the sale or liquidation of your business and want to reduce your tax liability
• Have a small private foundation and want to reduce the paperwork and expense
• Are preparing your will, establishing a trust, or designating a beneficiary for your retirement assets and want to pass on a legacy of charitable giving to your children.

Q: Why choose the Jewish Communal Fund rather than a commercially-sponsored fund?

A: First and foremost is our reputation for excellence. For over 35 years, the Jewish Communal Fund has received high marks from professional advisors and donors alike for its personalized service, professional business practices, and prudent fiscal management. With assets in excess of $950 million, the Jewish Communal Fund is one of the largest donor-advised funds in the US and regularly appears among the top 100 charities on The Chronicle of Philanthropy's Philanthropy 400 list. For the past three years, Charity Navigator has given the Jewish Communal Fund a 4-star rating for its efficiency.

Another distinguishing characteristic is our commitment to philanthropy. The Jewish Communal Fund is a community of caring individuals with a shared value system. Since its inception in 1972, the Jewish Communal Fund has distributed over two billion dollars to charitable organizations worldwide. We typically grant between 25 to 30 percent of our assets each year. In addition to the distributions made from our donors' funds, the Board of Trustees awards a community gift each year from its fees and endowment income to support the Annual Campaign of UJA-Federation of New York and for targeted needs and projects in the Jewish Community as identified by UJA-Federation. For more details about our community gifts, please click here.

Q: How do I open a fund?

A: You can establish a fund quickly and easily by sending us your completed donor application along with your initial contribution and investment recommendation.

Once we receive your application and contribution, we will send you immediate written acknowledgment for your tax records. Non-cash gifts such as publicly traded securities and mutual fund shares are sold as soon as we receive them. We invest the cash proceeds in accordance with your investment recommendation and notify you of your opening balance. At that point, you may begin using your fund.