UJEF New Trustee Orientation 2019-2020

New Trustee Orientation 2019-2020

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Our Goals for Today

• Get to know you • Orient you to UJEF • Provide you an understanding of your responsibilities

• Answer your questions 2

What is UJEF? • UJEF is the legacy, planned giving, and family philanthropy division of The Jewish Federation of Greater Washington.

• UJEF manages over 700 funds including legacies for

Federation, legacies for the broader Jewish community, and donor advised funds.

• Community Presence:

 The Jewish Federation of Greater Washington is the premiere fundraising agency of the local Jewish community  UJEF has $233.6 million* in assets under management  UJEF has built a legacy pipeline of $89 million**

* Based on unaudited 6/30/19 numbers. ** A conservative estimate as of June 30, 2019

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Why are endowment funds essential?

• Endowments are financial assets that are invested with the intention of

generating revenue to sustain a project or organization over years or in perpetuity.

• Endowments are:  Essential funds during fundraising revenue fluctuations  Resources for new initiatives and opportunities  Permanent resources to ensure quality  Capture the transfer of wealth  Key to sustainability • Non-profit industry best practice suggests that non-profits should derive 20% of their annual operating budgets from endowment resources.

• Donor Advised Funds engage donors and their families around the issues they care about most and connect them to Federation, with the aim of becoming the address from which they can accomplish all their Jewish philanthropy.

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Jewish Bequest Information

• Results of the 2013 National Study of American Jewish

Giving  74% of those surveyed have wills  Only 15% have designated gifts to the Jewish community

• Transfer of wealth study from Paul Schervish and John

Havens  $41 trillion over the next 50 years; $6 trillion in bequests to charities

• Potential in bequests:

 Only 9% of Jewish gifts of $1 million or more support Jewish causes; only 5% of gifts over $10 million  If 20 individuals each asked 5 donors and received an average gift of $50 thousand, they would generate $5 million 5

UJEF Governance Organizational Chart 2019-2020

Board of Trustees Norm Pozez

Executive Committee

Grants Committee

Investment Committee

Kevin Fishkind

Larry Nussdorf

Linda Kraner

Elizabeth Goldstein

Federation Create a Jewish Legacy (Financial Resource Development) TBD

Nomination Committee (Combined with Federation)

Allied Professionals Committee

Jane Shichman Elizabeth Goldstein (Alison Mershon)

Elizabeth Goldstein

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UJEF Funds Breakdown of Funds* $9.7 Mil. $34.1 Mil. $93.5 Mil.

$92.6 Mil. UJEF/ Federation Endowment Funds

Donor Advised Funds

Agency Funds

Charitable Remainder Trusts/ CGA

$228.4 million under management *As of June 2019

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Fund Breakdown Fund Type General Funds Field of Interest Funds PACE/LOJE Donor Designated Donor Advised Funds (also called Philanthropic Funds) Charitable Gift Annuity/Trusts Agency Funds Grant pools/operating funds

*As of June 2019

Definition

Invested (%) # of Funds (%) $20.6 million (8.8%) 82

Trustees determine how spendable amount will be distributed. Also called Endowment Funds or Memorial Funds.

Donor has directed a broad field of interest, such as Jewish education, Israel or $19.7 million (8.4%) aging. Trustees determine how funds are distributed within those fields.

54 (6.6%) Spendable amount supports the annual campaign (as a Lion of Judah gift if the donor is a woman). Some will be funded with insurance policies, which is why $34.0 million (14.6%) the per fund amount seems low.

206 (25.3%) Spendable amount supports a specific program or organization.

Donors view these as charitable checking accounts. Donor gets tax deduction at time of gift and can recommend grants from the fund. The funds often receive additional contributions over time. For most of these funds, grants can be made from principal and income and can span multiple generations. Some donors use these funds instead of family foundations.

Planned giving vehicles where residual assets become one of the other fund types noted above when trust or annuity matures. Generally, about 40-50% of initial gift becomes some type of endowment fund.

Funds invested in our main investment pool by local and national Jewish agencies aligned with our mission. Agencies withdraw funds as needed.

Funds transferred out of general funds into pool where general grants are made.

TOTAL PERMANENT FUNDS TOTAL NON-PERMANENT FUNDS TOTAL FUNDS

$19.2 million (8.2%) 106 (13%)

$92.6 million (39.7%) 250 (30.7%) $9.7 million (4.1%) 39 (4.8%) $34.1 million (14.6%) 40 (4.9%) $3.7 million (1.6%) $93.5 million (40%) $136.4 million (60%) $233.6 milllion (777) 8

UJEF Portfolio As of June 2019

Investment Performance through June 2019 1 Month

Qtr

1 Year

3 Year

5 Year

10 Year

UJEF

3.77%

3.30%

5.26%

8.25%

4.46%

7.38%

Policy 1 index

4.30%

3.12%

5.36%

8.01%

4.27%

6.72%

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UJEF Goals and Priorities UJEF goals are informed by Federation’s mission to inspire, build, and sustain vibrant Jewish life in a changing world by mobilizing our community in common purpose, intentional innovation, and effective action. Increasing our resources will fuel our ability to support the long-term future health of the community and build vibrant Jewish life in a rapidly changing world.

GOAL: Have $250 million in assets under management by 2020 and grow our expectancy pipeline to $100 million by 2020  Work with Individuals and Family Donors  Work with Agencies, Synagogues, and other Organizations  Work with Professionals  Refocus Grants Process  Grow Invested Assets  Upgrade Operations

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Programs and Outreach • Federation Create a Jewish Legacy

 Federation’s CJL focuses on building the endowment for the annual

campaign and UJEF grantmaking through personal outreach, marketing, events, and stewardship

• Next- and Multi-Gen Philanthropy

 UJEF has developed expertise in working with families of wealth on

multigenerational philanthropy. A Next Generation Philanthropy program is a cornerstone of our multi-generational outreach

• Allied Professionals

 Hi-net-worth individuals consult allied professionals for major charitable

investments. UJEF meets with seasoned allied pros in the legal, accounting, insurance and wealth management fields. For emerging professionals, the Roundtable fosters a network, familiarizes them with UJEF, and helps them speak to their clients about philanthropy

• Agencies and Synagogues

 UJEF supports agencies’ and synagogues’ efforts to build their own

endowments and offers the opportunity to co-invest in UJEF’s sophisticated investment pool

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Grants • UJEF maintains a Grants Committee that directs non-designated

endowment revenue and finds projects and initiatives that meet the purposes of funds under management.

• The Grants Committee has provided seed funding for innovative

ventures like the Jewish Food Experience, Honeymoon Israel and PJ Library. These programs have strengthened the reach of The Jewish Federation of Greater Washington and enriched Jewish life.

•

UJEF invests in programs in Israel that support the work of Intentional Communities and ways to strengthen their initiatives. These communities have been created by modern-day Israeli pioneers looking to improve the quality of life in Israel’s periphery.

•

Our matching grant program motivates current donors and inspires philanthropy by matching new money for innovative programs in the Jewish community, at home and abroad.

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2019 Grants GRANTEE

Dror Israel Emergency Task Force Eretz Ir Federation Task Force Grants Israel Exploratory Trip Israeli Council on Youth Movements Jewish Community Relations Council Jewish Foundation for Group Homes JFamily Ambassadors Program Joint Distribution Committee Jteen Philanthropy Expansion Learning and Leadership Mahalach Foundation Matching Grants Pool NCSY—JSU NOVA expansion Services for Children with Disabilities or Cancer Services for the Elderly Shahaf Foundation Tarbut Totzeret Ha’aretz Dror Israel Emergency Task Force Total

AMOUNT

$140,000 $43,565 $50,000 $250,000 $15,000 $150,000 $57,130 $55,717 $100,000 $48,781 $40,000 $185,000 $11,111 $90,000 $50,000 $65,000 $144,238 $150,000 $50,000 $50,000 $140,000 $43,565 $1,745,542

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What are my responsibilities?

• Contribute your time and experience to our long term success by:  Serving on a committee;  Participating in legacy conversations; and/or  Assisting in allied professionals outreach

• Attend Trustee meetings prepared to share ideas, make suggestions and ask questions

• Have a conversation about creating your legacy

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Fiduciary Responsibilities

• Duty of Care (skill and diligence) • Duty of Loyalty (undivided allegiance) • Duty of Obedience (mission and laws) • Duty of Inquiry – not a formal duty, but supports the other three

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UJEF Trustees 2019-20

• • • • • • • • • • • • • • •

Norm Pozez, President Dr. Sara Cohen Yvonne Schlafstein Distenfeld Peter Federowicz Kevin Fishkind Norman Freidkin Dr. Michael Friedman Michael Gildenhorn Jerald Greenspan Jerry Herman Steve Jacobson Ron Kaplan Stuart Kaswell William Kreisberg Jonathan Lerner

• • • • • • • • • • • • • • •

Mark Levitt Trustees Emeriti: Liza Levy • Paul Berger Philip Margolius • Norman Bernstein Larry Nussdorf • Joel Breslau Dr. Ronald A. Paul • The Honorable Susan Pittleman Joseph B. Gildenhorn Gil Preuss • Alan Meltzer Meryl Rosenberg Deborah Ratner Salzberg Janis Schiff Rhea Schwartz Stuart Tauber David Wexler Robin Hettleman Weinberg Julie Wallick

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UJEF Investment Committee 2018-19 Will be updated for FY20 this fall

Larry Nussdorf, Committee Chair Chairman and CEO of Clark Enterprises, Inc.

Brad Lackey Senior Vice President of Tiedemann Wealth Management

Daniel Abramowitz Founder and President of Hillson Financial Management

Max Meltzer Director of Bronfman Rothschild

Rose Cohen Managing Director at Citi Private Bank Drew Karr Managing Director & Financial Advisor for The Atlantic Group of BB&T Scott & Stringfellow Stuart Kaswell Treasurer of The Jewish Federation of Greater Washington

Norman Pozez President of the United Jewish Endowment Fund Chairman at UniWest Commercial Realty Howard Schilit CEO of Schilit Forensics Steven Schwartz Portfolio Manager for Prudent Capital

The Washington, DC office of Graystone Consulting, led by Robert Scherer and Ross Charkatz, serves as Investment Advisor to the United Jewish Endowment Fund.

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UJEF Grants Committee 2018-19 Will be updated for FY20 this fall

• Kevin Fishkind, Chair • Michael Poliner • Bradley Chod

• Meryl Rosenberg

• Jerald Greenspan

• Philip Schiff

• Julien Guttman

• Rhea Schwartz

• Ron Kaplan

• Lisa Sorkin

• Jocelyn Krifcher

• Mindy Strelitz

• Sid Moskowitz

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Contact Information

Elizabeth R. Goldstein, Esq. General Counsel, Jewish Federation Deputy Director, United Jewish Endowment Fund elizabeth.goldstein@shalomdc.org 301-230-7228

Eileen Frazier Chief Operating Officer of The Jewish Federation of Greater Washington eileen.frazier@shalomdc.org 301-230-7250

6101 Executive Blvd.

North Bethesda, MD 20852 PHONE 301-230-7230 FAX 301-230-7273 TTY 301-230-7260 EMAIL endowment@shalomdc.org WEB shalomdc.org/endowment