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April 23, 1999/7 Iyar 5759, Vol. 51, No. 30
Major contribution made by Valley Jewish couple
TAMI BICKLEY
Staff Writer
A Paradise Valley couple has donated $2 million to the Jewish Community Foundation's Perpetual Annual Campaign Endowment (PACE), the largest known contribution to a Jewish charity to date in the Valley, according to Marcia Weisberg, director of the foundation.
Processing of the contribution, made by Phyllis and Leonard Friedel, began in December 1998. The endowment proceeds will be donated each year to the United Jewish Appeal/Federation Annual Campaign, which raises and distributes money for various Jewish programs and organizations.
One unusual aspect of the Friedels' gift, according to Weisberg, is that the couple chose to set up the PACE fund during their lifetime.
"It is unusual, though not ruled out. Most people don't (activate the fund) during their lifetime," Weisberg explained. "Instead, the majority of people do it as a deferred gift after they have (died). They take steps during their lives to ensure that the gift will continue, either through a will, trust or insurance."
PACE, a program that began approximately seven years ago, is a national program of United Jewish Communities, formerly known as the United Jewish Appeal and the Council of Jewish Federations. It allows donors - usually those who already contribute to their federation's annual campaign - 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 campaign, whereas an annual campaign donation is distributed and gone by the end of that year. PACE funds also can provide back-up for future campaigns, as the number of annual campaign supporters is decreasing, according to informa- tion provided by the Jewish Federation of Greater Phoenix.
The endowment earns interest and continues to grow in the foundation's investment pool. Each year, 5 percent of the value of the original endowment is channeled to the campaign. This 5-percent policy allows for fluctuation in the market and ensures the perpetuity of the fund, so that in the event of a downward slope in donor gifts, there is a cushion built up, said Weisberg. A donation of $100,000 will go to the campaign annually in the Friedels' name.
"I have huge admiration for them," said Randi Sherman, daughter of the Friedels and an active member of the federation and the local Jewish community. "It is important to them to keep giving even after they're gone, and this will ensure their gift of life."
The Friedels directed the foundation to use the money as an annual campaign endowment effective immediately, and to be continued after they die. When someone decides to give money to such an endowment fund during his or her lifetime, that person may decide at that time where the money should go.
"There is so much flexibility with (the fund) at the time the donor establishes it," Weisberg said. "We always have a disclaimer in the agreement with the donor, that should a program or organization (to which their money is currently directed) ceases to exist, or does not perform objectives the donor originally wanted it to, then the foundation will investigate (the situation). If what the donor said happens to be true, then the money can be re-directed. But once something is established, we cannot go back (due to a donor's change of heart) and change where the money goes."
Once the donor dies, the foundation distributes the money according to the donor's wishes, or by instructions, such as those stated in a will. If a donor is undecided about where exactly he or she would like to see the money distributed, a philanthropic fund may be arranged, and the donor can channel the money to a variety of organizations or causes with the foundation's approval. Donors do not pay taxes on income of the fund.
For the Friedels, exactly what organizations receive their money is not the issue because they just want to "aid our community and other Jewish communities around the world today and for years to come," they said in a written statement.
The couple moved to Arizona 14 years ago from Omaha, Neb. Leonard Friedel, now retired, owned and operated a retail clothing store in Omaha. Phyllis Friedel acts in community theater and occasionally works as an extra in films. While in Omaha, the Friedels were active in the Jewish community and endowed a gift to the Omaha Day School, now known as the Friedel Jewish Academy.
"It's unusual," said Weisberg. "Very often, people move to a (different) community ... but they give their charitable contributions to the community they're (originally) from ... rather than to the community in which they (last) lived. But the Friedels feel that this is their community now."
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