Marcie Flom

An education legacy

In October, our community lost one of its most devoted supporters, Leon Glassman, z”l. Leon will be remembered for generations to come for his commitment to Jewish education and its central role in Jewish identity and continuity. Through the Jewish Community Foundation, Leon created a legacy that reflects his lifelong passion in these areas. Together with his wife Rose Marie, they made an indelible impact on our community – an impact that will ensure his memory lives on.

Leon and Rose Marie’s commitment to Jewish education goes back decades to their life as young parents in Regina. Their move to Vancouver was motivated in part because here they would be able to provide their children with a Jewish education, which they saw as an integral aspect of helping them develop strong Jewish identities.

Leon and Rose Marie recognized that the high cost of living in the Lower Mainland today has reduced the ability of many families to enrol their children in Jewish day schools and Jewish educational programs. They wanted to find a way not just to help families and children, but to strengthen Jewish continuity for the community as a whole.

In April 2016, Leon and Rose Marie made a million-dollar gift to create the Leon Glassman Fund for Jewish Continuity through Education endowment fund. The response from community members who share their passion, as well as from the day school community that understands so clearly the impact this endowment will make, was tremendous, and it inspired Leon and Rose Marie to make a second million-dollar gift to the fund.

The fund will provide a steady source of support for tuition assistance, so more children can reap the benefits of a Jewish day school education. This endowment will support an area of need that was close to Leon’s heart, enriching our community in perpetuity.

According to executive director Marcie Flom, the Jewish Community Foundation was “privileged to work with the Glassmans to create Leon’s legacy for the Jewish community.” She said, “Leon’s philanthropy reflected his life’s passion and his commitment to Jewish education in a way that perpetuates his memory for his children and grandchildren.”

Like Leon and Rose Marie, there are many community members who support causes that reflect their interests and their values. If you are among them, then you, too, can create a legacy at the Jewish Community Foundation that reflects your passions. To make a contribution to the Glassman Fund or for more information on how to create a legacy, visit jewishcommunityfoundation.com.

Where there’s a will …

Planned giving – the allocation of funds to charity in a will – is the lifeblood of many charitable organizations. But proper planning can deliver excellent financial benefits to the donor during their lifetime, too.

Aeronn Zlotnik, a financial advisor with ZLC Financial, said proper planning can ensure more money for a donor’s favorite charity and less money for Canada Revenue Agency.

“There’s a whole bunch of different vehicles we can use to make the experience much more tax efficient and better for the client,” he said. “For instance, you might be able to make a donation but then they’ll turn around and buy you an annuity so that you have some income on a go-forward basis.”

Buying an investment fund that is willed to the charity is another alternative. It could be structured so that the donor receives income tax-free. For instance, Zlotnik said, a $100,000 investment might provide $100 a month in income, which is designated return of capital, rather than new income, and is, therefore, tax-free.

“There are rules in place where you could donate securities and not have to pay for capital gains and so, effectively, you could increase your income today and make a charitable donation later and everybody wins,” he said.

The top rule of thumb, Zlotnik explained, is having a conversation with an advisor about intentions. There are other ways to decrease or eradicate taxes owed on an estate. Better still, there are ways to maximize the benefits while we’re still around to appreciate them.

Designating registered retirement savings plans or a registered retirement income fund to charity means the estate will avoid being taxed at the highest marginal tax rate of the deceased person, while at the same time generating a tax benefit for the plan’s total value. The dead have a tax advantage over the living, in that a tax credit arising from a bequest can be applied in its entirety to the estate’s tax bill, compared with a rate of 75% for a breathing taxpayer.

Transferring a life insurance policy to a charity allows the premiums to qualify for a tax benefit. Annuities, if arranged properly, can benefit the donor during life by providing interest income and a tax receipt for the donation to boot. In the end, the charity gets the principal.

The significance of planned giving to charities is crucial, according to Marcie Flom, vice-president, financial resource development for the Jewish Federation of Greater Vancouver.

“These planned gifts ensure the long-term stability and viability of not-for-profit organizations,” she said. “They provide resources that the charity can count on as a stable source of funding to carry out its mandate, its charitable work. By having a stable source of funding for their core mandate, it enables them to allocate resources to take some risks, to try new programs. It provides that stability.”

Endowed funds, which are a common product of planned giving, let an organization breathe a little easier, knowing that there will be guaranteed income at a certain level each year.

“Obviously, that’s the benefit for those agencies,” Flom said.

For the donor, in addition to the tax benefits, this approach is also a statement of philanthropic vision, which can continue even after they are gone.

“It’s a wonderful way,” said Flom, “for them to create a legacy in the community that reflects their charitable giving through their lifetime … and then, again, for the organization, it provides that long-term, stable funding that is so critical to the organization’s operations.”

Federation sustains success

As the 2014 Jewish Federation of Greater Vancouver annual campaign draws closer to a record $8 million mark, preparations are well underway to build on that success in 2015.

Cindy Behrmann, campaign director since 2012 and one of the primary drivers behind this year’s campaign will be heading off to a well-deserved retirement. Over the past few months, Federation was hard at work reviewing the financial resource development (FRD) department in advance of Behrmann’s departure at the end of December and has announced the following changes.

photo - Michelle Pullan — Michelle Pullan *(photo from Jewish Federation of Greater Vancouver)*

Michelle Pullan, Federation’s women’s philanthropy director since 2011, will assume the role of campaign director. Pullan has considerable experience in philanthropy and fund development, having enjoyed success as a fundraising manager at Ballet BC and director of development at Vancouver Heritage Foundation before joining Federation’s FRD team. She has taken on leadership and volunteer roles on behalf of Jewish schools in the community and has served on the boards of Camp Solomon Schechter and Camp Hatikvah.

Campaign coordinators Eva Bach and Anna Vander Munnik have been promoted to the role of campaign managers. Vander Munnik, with Federation since 2011, will focus her effort on managing the men’s philanthropy division, while Bach, who joined Federation in 2013, will manage the women’s philanthropy portfolio. Also returning in January from maternity leave will be director, marketing and communications, Becky Saegert.

Led by associate executive director Marcie Flom, the FRD team is well positioned to capitalize on and sustain the success enjoyed in 2014.

Plan your giving in Leave a Legacy Month

If you don’t have a will, get it done. That’s the message of the Canadian Association of Gift Planners, an organization that’s designated the month of May as Leave a Legacy Month. Calvin Fong, chair of the national program titled Leave a Legacy, said the program’s goal is to raise awareness of the importance of having a will, as well as the idea that people consider leaving a gift to charity in their will.

“If you die without a will you really have no control over how your estate gets distributed – legislation will dictate that instead,” Fong told the Independent. “Without a will, for example, you have no way of leaving a gift to your favorite charity or creating a trust for your spouse. Having a will ensures your wishes are articulated and carried out after your death.”

Just six weeks ago there were changes to the Wills, Estates and Succession Act (WESA) with important implications. The minimum age to create a will has been lowered from 19 to 16, wills created prior to marriage are still valid after marriage, and the courts have been granted authority to recognize non-compliant documents as wills, and ensure that a deceased person’s last wishes will be respected. For example, legislation now allows for the possibility that electronic versions of wills might be recognized. “The changes modernize legislation created over 100 years ago and streamlines things for the public,” Fong explained.

Tax savings is another reason to consider creating a will. Gifting money or assets to charity makes your estate eligible for a tax deduction upon your death, while creating a trust in your estate allows you to defer taxation of certain assets.

If considering gifting money to charity, start by figuring out what you want your personal legacy to be, advised Marcie Flom, director of the Jewish Community Foundation, which is housed at the Jewish Federation of Greater Vancouver. JCF works one-on-one with donors to create their legacies, using bequests, gifts of life insurance, gifts of cash and in-kind donations, annuities and charitable trusts. To date, it has 330 endowment funds and assets of $42 million that it manages on behalf of donors in the community.

With gifts of life insurance, donors name JCF as the owner and beneficiary. Upon their death, the proceeds of the policy enter an endowment fund they created during their lifetime, supporting causes that were important to them. “Some donors have various life insurance policies and discover that they no longer need them, so they decide to donate them to the foundation,” Flom explained.

With bequests, individuals stipulate a gift to the foundation in their will to support those causes. “It can take various forms, such as a set amount or a percentage of their estate,” Flom said. “It’s very personal, and usually people meet with me to talk about what they want to do, the idea being that we want to help increase your current income or estate value, while also creating a lasting legacy for the community.”

That legacy can involve donations to Jewish and non-Jewish causes, as the JCF distributes funds to both. And there’s a broad range of donors, Flom said, with some funds established with as little as $1,000, or no assets at all if it’s a planned gift. “Some donors make a modest contribution to their fund each year to build it over time,” she explained, “but legacy planning is not limited to those with means. Anyone can establish a fund in any amount and build it over time or establish a fund with a planned future gift.”

Some individuals use their legacy to involve and engage their children in active philanthropy. “They work with us on their philanthropy during their lives, but also use it as a method to engage their kids to take over that philanthropy after they’re gone,” Flom said. The children continue their parents’ legacy of lifetime giving by working together to direct support to their parents’ favorite charities and/or the charities that they are passionate about.

For more information, call the Jewish Community Foundation at 604-257-5100 or visit jewishcommunityfoundation.com. For more on Leave a Legacy Month, WESA changes and more, visit leavealegacy.ca or cra-arc.gc.ca.

Lauren Kramer, an award-winning writer and editor, lives in Richmond, B.C. To read her work online, visit laurenkramer.net.