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March 10, 2000/3 Adar II 5760, Vol. 52, No.27
Tikkun olam
Philanthropic efforts transform face of phoenix Jewish community
TAMI BICKLEY
Associate Editor
Economic growth, tax benefits and an increasing interest in tikkun olam (repairing the world) have changed the face of the Jewish Community Foundation, especially over the past seven years.
Neal Kurn, chairman of the foundation, thinks that with the economy on a roll, and income and state-tax laws offering incentives to give to charity, "more people are beginning to examine charitable options than ever before."
The foundation, a department of the Jewish Federation of Greater Phoenix, has seen its total assets jump from just over $3 million in 1993, to around $37 million today. Nationally, Jewish community foundations that are either part of or in support of local federations have more than $65 billion in endowment funds, according to Marcia Weisberg, director of the Phoenix foundation for the past seven years.
"We've seen growth across the board in almost all of our funds," Weisberg says. "The Jewish Community Foundation has really changed the fabric of Phoenix. The community is growing by leaps and bounds, and we need to ensure that the funds (we offer) are going to be there, and I think the community is beginning to recognize that."
The foundation offers a variety of funding opportunities through which donors can provide money for organizations, agencies, synagogues and causes of choice.
One such fund is a donor-advised or philanthropic fund. Such funds are charitable bank accounts created in the donor's name into which a person can make a donation to the foundation and retain the right to make recommendations as to what qualified charities should receive the money. According to the foundation's 1998-99 annual report, 27.3 percent of this money goes to the federation; 24.4 percent is donated to constituent agencies of the federation and affiliated agencies; 31.1 percent goes to other Jewish organizations; and roughly 17.2 percent is donated to secular organizations.
Unrestricted funds benefit innovative programs within the Jewish community. They can also be used in the event of an emergency. The foundation's grants committee makes annual distributions from these funds - usually to programs that are not funded by the annual campaign of the federation. The funds are in the name of the donor or someone else whom the donor has chosen.
Designated and field-of-interest funds can have either a narrow or broad focus, Weisberg explains.
"You can choose to fund Jewish education, which gives (the foundation) the opportunity to distribute the money to the Bureau of Jewish Education, or a preschool or a community event," she says.
Agency endowment funds are housed within the foundation, and can be perpetually created to support agencies of the federation. The foundation makes an annual distribution according to what the donor has specified.
Perpetual Annual Campaign Endowments (PACE) is a national program of the United Jewish Communities (UJC) that began nearly eight years ago. It allows donors to set up a permanent, restricted endowment to perpetuate their campaign gift, either for a restricted amount of time, or indefinitely. The program facilitates continuity of income for the federation's annual campaign, whereas an annual campaign donation is allocated and gone by the end of that year. PACE funds can also serve to provide back-up for future campaigns in the event of a donation shortage.
Women in the local Jewish community who contribute at least $5,000 to the annual campaign can also establish a Lion of Judah Endowment (LOJE) fund, which is similar to a PACE fund in that it is perpetual.
By reaching out to the community through direct-marketing material and holding donor seminars throughout the Valley, the foundation has been able to educate people about the process of fund establishment and the benefits attached. The foundation also works with prospective donors so they better understand what types of funds would work best for them in terms of their financial situation, their needs and intentions, says Weisberg.
"We then understand what they are thinking and what they actually want to do (with their donations) rather than just opening an envelope to see that we've been listed as a beneficiary of a trust or a will with a limited description," she explains. "We want to make it clear to the donors and to the professional community that we're not a threat to them. We want to help them ... and rather than distributing funds here and there, they can establish one fund here and we'll make all of the distributions for them."
In the last year, Weisberg and Kurn have noted a significant increase in the interest and establishment of certain types of funds, they say. Young couples and singles, for example, have been starting donor-advised funds. Many of them own stocks and are aligned with the Young Leadership Division of the federation, Weisberg says.
"Their parents don't necessarily have funds, but their parents are actively involved in philanthropy and the community," notes Weisberg, referring to what oftentimes may prompt young people to get involved.
"If they're not philanthropically inclined or care about tikkun olam, they're not going to do it. But all of these young people already make gifts to the annual campaign. ... We underestimate the involvement of young people."
Another area that has experienced growth is that of memorial funds. Families of people who have died are increasingly creating funds in their loved ones' memories, and usually the funds are aligned with causes once important to the deceased, Weisberg says.
Intergenerational philanthropic funds are also on the rise. Donors seek to include their children on funds after the donors die so that funds may be passed down from generation to generation, and the children can continue to make distributions.
Each year, the foundation distributes grants, much in the same way as the federation does. This year, the foundation may distribute approximately $80,000 to $90,000 within the community.
There are two categories under which programs may fall in order to be considered for a grant. The first includes new and innovative programs. These are programs that have never been done before, such as last year's Jewish literacy communitywide event. The second category is one-time endeavors, such as a concert where synagogues join together. Another example would be a film festival or an event that brings single Jews in the Valley together, Weisberg says.
Grants may also be used in the event of a community emergency.
Using grant money to fund new projects and one-time events "encourages the community to be more creative," Weisberg says. She adds that the foundation pays special attention to collaborative efforts among organizations, agencies and synagogues.
Within the past four years, Weisberg estimates that the foundation has doled out $11 million to $12 million for grants within the community.
Weisberg says that as long as the community realizes the financial benefits of establishing a fund through the foundation and the self-gratification that follows, the Phoenix Jewish community will continue to thrive.
"In most cases, (donating) takes away minimal dollars from a family," she says. "In lieu of taking those dollars away, you're also instilling in them that every Jew is responsible for the other, and (the theory that) 'even after I am gone, I'm still responsible.' "
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