NEW YORK (Sep. 14)
The Federation of Jewish Philanthropies of New York and the United Jewish Appeal of Greater New York, in an unprecedented collaboration, have established the Jewish Communal Fund of New York (JCF) as the “philanthropic bank” to serve the Jewish community in the metropolitan area. This was announced today at a news conference in the offices of the new fund at 745 Fifth Avenue.
This represents the first time that these two major Jewish organizations have united in an effort to take care of the long-term philanthropic objectives of the Jewish community. Its purpose is to receive, manage and distribute charitable contributions from individuals, families and foundations, and also to aid contributors in meeting their long-term philanthropic goals.
Herbert M. Singer, a New York attorney, has been elected president of JCF. Frederic S. Berman, former State Senator from Manhattan, and New York City Rent Commissioner during the first Lindsay administration, has been named executive vice-president. The announcement was made by Lawrence B. Buttenwieser and Herbert F. Tenzer, presidents, respectively, of Federation and UJA.
JCF TO ENHANCE CHARITABLE EFFORTS
The two leaders termed the new undertaking “an historic and unique effort in New York Jewish philanthropy. JCF links, in a common long-range charitable funding program, the two completely autonomous organizations, which serve different Jewish needs.” Berman explained that JCF, an autonomous organization, had been created to enhance charitable efforts by individuals, their families and private foundations, and, at the same time, give contributors the maximum income tax deductions permitted.
Until recently, he said comparatively few contributors have been able to make provisions for their long-range philanthropic objectives. Those that did generally created their own private foundations. The restrictions of the federal tax reform act of 1969 placed new burdens upon private foundations, making them less desirable vehicles for maintaining charitable funds.
“JCF,” Berman continued, “has been created for the individual who wishes to commence making long-range contributions, or for the person who has had his own private foundation in the past and now wishes to terminate it because of the restrictive tax law provisions that apply to foundations. JCF offers contributors maximum tax benefits for their contributions.” With the Jewish Communal Fund, a contributor will be able to achieve, through reduction of expenses and increased available charitable deductions, benefits which were not available through private foundations even prior to 1969.
WILL NOT CONFLICT WITH ANNUAL CAMPAIGNS
“A most important facet of JCF’s activities,” Berman observed, “is the establishment of an endowment fund from which its board of trustees will make distributions each year to reflect the highest priority of needs then prevailing in the Jewish community,” JCF is a tax exempt organization, Berman stated, and has been declared by the Internal Revenue Service to be a publicly-supported charity, thus extending to contributors maximum tax benefits available under present law.
In addition, excess contributions to JCF may be carried forward as tax deductions for up to five years, as opposed to excess contributions to private foundations, which cannot be carried forward and are lost as deductions. Also, Berman explained, there is no tax on JCF investment income, making more dollars available for charitable purposes. Whereas an annual tax of four percent is imposed on private foundations’ net investment income.
Berman pointed out that JCF is not Intended to conflict with the annual campaigns of either UJA or Federation, which seek funds for present and immediate charitable needs. It may, in fact, he said, aid contributors in fulfilling their obligations to UJA and Federation.