Winter 2026 Newsletter
able. The payment rates are the same as they are for a regular gift annuity. This idea is so good, you can use it only once in a lifetime. Contact us to find If you are 70½ or older, you can use your IRA to out your rates, distribution limits, and benefits. have a meaningful impact with a qualified charitable distribution (QCD). You can distribute funds This article is for informational purposes only and is directly to the Jewish Federation, instead of taking not intended as tax advice. Be sure to consult your own normal distribution, and reduce your taxable intax advisor. come even if you do not itemize deductions.
Use Your IRA to SAVE TAXES
You can use the QCD up to an annual limit, which is $108,000 in 2025. If you are 73 years or older, the QCD can also count toward your required minimum distribution (RMD) for the year. If you like the idea of a QCD and are interested in the benefits of a charitable gift annuity (CGA), why not combine them? You can create a CGA with your IRA. Just like a QCD, the funds must come directly from your IRA administrator. You cannot make the distribution to yourself. You receive no income tax deduction on the QCD transferred to a CGA. There is a one-time maximum amount that can be used to create this special CGA. Each annuity payment will be tax-
Hesed Shel Emet Fund – Ensuring Dignified Jewish Burials for All The Lehigh Valley Jewish Foundation (LVJF) has established a dedicated fund within the community endowment, the Hesed Shel Emet Fund (“the Fund”), to provide dignified Jewish burials for individuals and families who cannot afford them. Rooted in the core Jewish value that every person deserves to be buried with dignity, the Fund ensures that financial hardship is never a barrier to
receiving appropriate end-of-life rituals according to our Jewish tradition. The Fund is managed by the Jewish Federation of the Lehigh Valley in partnership with the Lehigh Valley Clergy Group and Jewish Family Service. It was launched with initial support from previously consolidated funds created for this purpose, ensuring it continues to grow as one unified fund. The Fund is open for additional contributions to maintain sustainability and cover burial costs from investment income while preserving 1
the principal. As part of LVJF, the Fund benefits from the Foundation’s investment strategy, which has averaged approximately 10% annual returns over the past decade. It is treated as an agency fund, meaning: • It is not limited to distributions based on a fixed percentage of principal, allowing as many families in need as possible to apply for assistance. • Distributions can be made from principal when necessary, especially while the Fund is still growing. • No LVJF administrative fees are charged to this Fund. The Hesed Shel Emet Fund is intended to support fixed burial costs other than the burial plot itself, which is donated by participating synagogues. Distribution decisions are made collaboratively with synagogues and Jewish Family Service to ensure assistance is provided respectfully and responsibly.
LVJF Increases Its Israel Bond Investment to More Than $5,000,000 The Lehigh Valley Jewish Foundation (LVJF) purchased an additional $300,000 of Israel Bonds in November, bringing our total Israel Bond portfolio to $5,750,000. This purchase serves the dual purpose of being a prudent investment for our endowment fund while helping build every sector of Israel’s economy.
As our community ages and we increasingly encounter situations where funeral arrangements were not financially planned, and as costs continue to rise, the Hesed Shel Emet Fund plays a crucial role. It enables our caring Jewish community to honor our traditions, uphold human dignity, and ensure that no one is left without the proper rites at the end of life. Gifts to the Fund can be made by donating cash, appreciated securities, or, if you are age 70½ or older, through a Qualified Charitable Distribution (QCD) from your IRA. If you would like more information or are interested in contributing to the Hesed Shel Emet Fund, please contact Aaron Gorodzinsky at 610-821-5500 or aaron@jflv.org Mike Miller, Chair, LVJF
interest rate risk and market fluctuations, while providing a combined average yield of 4%. Israel Bonds offer higher yields than US Government Bonds, while providing a similar moderating effect on stock market fluctuations.
The LVJF portfolio is a pooled endowment investment fund of the Jewish Federation, its donors, and the funds of many Lehigh Valley agencies, synagogues and organizations (ASOs). Each ASO has its own fund and takes part in the pooled investments, similar to a mutual fund. It is truly a community endowment fund, where each ASO has a representative taking part in the The new total as of September 30, 2025 is 9.6% investment policies and decisions, with guidance of the endowment assets of $59,800,000, allowing from Goldman Sachs, our investment advisor. our target allocation of around 10%. In making this investment, we are joining many other FedTherefore, each ASO and donor fund indierations and government agencies (including the rectly owns a proportionate share of our Israel Commonwealth of PA) in expressing support for Bond portfolio. For example, an ASO with $3 milIsrael while making a good investment decision. lion invested with the Federation indirectly owns $300,000 in Israel Bonds. Similarly, a donor with a Israel bonds now represent 50% of our investnamed philanthropic fund of $10,000 would have ment grade fixed income allocation. Over time, $1,000 in these bonds. we have constructed a laddered portfolio with an average maturity of 4 years in order to minimize 2
Many of our community organizations and donors have a firm commitment to investing in Israel. Investing with the Federation provides an efficient mechanism for managing that desire, while providing ongoing monitoring and portfolio management, without reducing liquidity. Israel Bonds rank among Israel’s most economic and strategic resources, with a record of proven success spanning over 70 years. Proceeds from the sale of Israel Bonds have played a decisive role in Israel’s rapid evolution into a groundbreaking, global leader in high tech, green tech, and biotech. Lewis Gaines, Chair, LVJF Investment Committee Mike Miller, Chair, LVJF
Charitable Giving: Making a Lasting Difference During Life and After Charitable giving is a powerful tool, not only for supporting causes you care about, but also for achieving financial, estate planning, and tax benefits. There are two primary ways to make a difference through charitable giving, depending on your goals and capacity to give: • Lifetime Giving – Gifts made while you are alive. • Testamentary Giving – Gifts made after your death through your estate. Why Give During Your Lifetime? • Personal Fulfillment – Witness the impact of your gifts. • Tax Planning – Reduce income, capital gains, and estate taxes. • Family Involvement – Engage children or grandchildren in philanthropy. • Strategic Planning – Leverage wealth for social impact and legacy building.
tion and receive a charitable deduction for the full fair market value (if you itemize deductions). This is a common tool for donors with low cost-basis assets. Donor-Advised Funds (DAFs) A DAF functions like a charitable investment account. Donors contribute assets, receive an immediate tax deduction, and recommend grants over time. Each new contribution to a DAF provides an additional deduction. DAFs feature low administrative costs, a simple contribution process, and periodic reports. Investments can grow over time, increasing future charitable impact. LVJF has achieved an average investment performance of 10% annually over the past decade. You can also name a successor to continue making grant recommendations.
Charitable Gift Annuities (CGAs) A CGA is a contract between a donor and LVJF. The donor transfers assets, and LVJF pays a fixed income for life based on age and current annuity rates. The remaining assets go to the charity upon death. CGAs offer a partial tax deduction, favorable tax treatment on payments, and a reliable income stream. LVJF accepts CGAs starting at age Lifetime Giving Vehicles 65, or at age 55 if the first payment is deferred to age 65. Joint annuity beneficiaries are also possiAppreciated Securities ble. CGAs are ideal for older donors seeking inDonating long-term (held for over 1 year) apprecome with charitable intent. ciated stocks, bonds, or mutual funds is tax efficient. You avoid capital gains tax on the apprecia3
Qualified Charitable Distributions (QCDs) Available to IRA owners age 70½ or older, QCDs allow up to $108,000/year (2025) to be transferred directly from an IRA to LVJF or another qualified charity. For individuals age 73 or older, QCDs count toward required minimum distributions (RMDs) and are excluded from taxable income. This reduces your Adjusted Gross Income (AGI), which may lower Medicare premiums and provide other tax advantages.
Testamentary Giving Vehicles Bequests in a Will The most common form of testamentary giving. A bequest can be a specific monetary amount, a percentage of your estate (recommended), or a residuary gift (what remains after other gifts and expenses). Bequests are easy to include or amend in a will or revocable trust and are deductible from the estate for tax purposes.
LVJF Special Funds
Retirement Accounts (e.g., IRAs, 401(k)s) Leaving retirement accounts to charity is tax effiThe Lehigh Valley Jewish Foundation offers a va- cient. These accounts are income-taxable to heirs, riety of funds tailored to your philanthropic inter- but not to charities. Simply name LVJF or another ests: charity as a beneficiary; there is no need to amend • Perpetual Annual Campaign Endowment your will. You can also split the account between (PACE) – Ensures your annual campaign gift con- family and charity. tinues in perpetuity. • Lion of Judah Endowment (LOJE) and Pome- Charitable giving is more than generosity—it’s granate Endowment (POME) – Enable women a strategic decision that aligns your values with to endow their annual campaign commitments. your financial goals. Whether during life or after, • Maimonides Perpetual Annual Campaign En- today’s tools make it easier than ever to: dowment (MPACE) – Allows Maimonides Soci- • Maximize tax benefits ety donors to endow their annual commitment and • Provide for your family support ongoing community needs. • Leave a lasting impact for our Jewish community Charitable Remainder Unitrusts (CRUTs) A CRUT is an irrevocable trust that pays a per- Ready to Move Forward with Your centage (minimum 5%) annually to the donor or Legacy Giving? beneficiaries. The remainder goes to JFLV and other beneficiaries. CRUTs are ideal for highly ap- Consult with a tax advisor, estate planning attorpreciated assets, offering income, diversification, ney, or financial planner. Clarify your charitable and estate tax benefits. The minimum to establish goals and explore which options best suit your sita CRUT is $500,000, and JFLV must be designated uation. as one of the beneficiaries. For more information, including opportunities Why Choose Testamentary Giving? offered by the LVJF Endowment Fund, contact Aaron Gorodzinsky, director of development, Jewish Testamentary giving ensures continued support Federation of the Lehigh Valley, at 610-821-5500 or at after your death for the organizations you care aaron@jflv.org. about. It allows you to make impactful gifts without affecting your current lifestyle or liquidity. It Mike Miller, Chair, LVJF can also reduce or eliminate estate taxes and create lasting endowments that benefit the community for generations without having to use any of your current assets.
You can also learn more by scanning the QR code.
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Six Tax-Saving Solutions for the Year End
are 73 years or older, the rollover counts against your required minimum distribution (RMD), so making an IRA rollover gift to an organization like ours could reduce your income and taxes. The IRA rollover is a great way for you to help support your favorite causes. While you won’t receive an income tax deduction for a rollover gift, you also won’t pay any income tax on the transfer. The transfer works only for IRAs and not other retirement accounts. You may be able to first roll over your 401(k) or other plan into an IRA and then take advantage of this strategy. Check with your tax advisor or contact us to learn more about how you can use your RMD for good and lower your taxes.
With planning, you can trim your tax bill and avoid paying too much. Here are six things you can do to make your money work harder for you. 1. Pay Your Mortgage Early – Make your January mortgage payment in December. 2. Defer Income – Defer income or a year-end bonus until next year. 3. Give to Charity – Make a gift to the Federation and any other charity you like. 4. Manage Your IRA – If you are required to take a distribution from your IRA, take only the required amount to reduce taxable income. Tax Savings Worth a Second Look 5. Balance Stocks – To offset any capital gains, sell some stock for a loss and re-balance your portfolio. While there are some obvious ways of saving tax6. Gather Deductions – Make early payments for es, such as increasing your charitable giving, there any deductible expenses. are also some subtle ways to maximize your savings and minimize your tax bill. If you own any Tax-Wise Charitable Planning Strategies of these assets, consider these strategies as part of your year-end planning. There are a number of charitable planning strategies that can help you lower your income and taxConsider Doing This... es this year. Here are some ways you can shift tax If You Have... dollars to charitable dollars and support a cause Low-performing stocks Update your portfolio by like ours. IRA Charitable Rollover – Persons age 70 ½ or older can roll over up to $108,000 from their IRA to a qualified charity like ours. This may lower your income and taxes, even if you do not itemize deductions.
that have outlived their usefulness to you.
selling stocks that have lost value. Balance losses with gains from other stocks.
Real estate you are tired of holding.
Give that real estate (or part of it) to a qualified charity. You lose the burden of maintaining and paying taxes while gaining income tax advantages.
A business ownership where you wish to reduce your share
Donate a share of your closely held stock to charity. You receive an income tax deduction and reduce your ownership.
High-performing stocks you wish to sell but that would result in steep capital gains.
Transfer (never sell) your stock to us to fund a charitable gift annuity or charitable remainder trust. Receive income for life, as well as tax benefits.
Outright Gift of an Asset – Make a gift of stock or another asset and avoid paying capital gains tax on the transfer and receive a tax-saving charitable deduction. Donor Advised Fund (DAF) – Make a tax deductible gift to a DAF, which gives you the ability to make grants to your favorite charities this year and in future years. Another Smart Idea: While you may initially appreciate the income, as time goes on the higher IRA withdrawal requirements may push you into a higher tax bracket, increasing your taxes. Congress made the IRA charitable rollover permanent. The rollover law allows taxpayers who are required to withdraw money from their IRAs to give directly to charity. If you
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Outstanding Investment Returns Drive JFLV’s Assets to an All-Time High The Foundation has delivered outstanding results for more than 5 years. As a result of our strong investment returns and increased participation by community organizations, Foundation assets reached an all-time high of $59.8 million at the end of September 2025. Community funds grew to 46% of the total. We have evolved into a true community foundation.
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While most Jewish Foundations do not publish their investment returns, the ones that do publish them have very similar portfolio structures and long-term results. Their typical growth and income funds have lots of foreign stocks and also have a large allocation to smaller companies. Their portfolios match the standard (over-diversified) investment advice provided by the major advisory firms. As a result, the long-term results from five major Jewish Foundations closely mimic one another and the performance of the Morningstar Moderate Allocation Index. Lewis Gaines, Chair, LVJF Investment Committee
Total JFLV Allocation
Asset Class
Value
Percent
Deposits & Money Market Funds Investment Returns as of September 2025 Investment as of September 30, 2025 Investment Returns as30, of September 30, 2 InvestmentReturns Grade Fixed Income $ $ $ $ $ Value$
Israel Bonds High Yield Fixed Income US Large Cap Equity Asset Class Asset Asset Class Class US Small Cap Equity Investment Strategies $ Deposits & Total Money Market FundsMarket $ Funds Deposits && Money Deposits Money Market Funds
Total JFLVTotal Allocation JFLV Total JFLV Allocation Allocation
407,787 6,484,247 5,450,000 6,067,147 38,384,581 Value Value 3,004,661
0.7% 10.8% 9.1% 10.1% 64.2% Percent 5.0%Percent Percent
59,798,423 100.0% 407,787 0.7% $$ 407,787 407,787 Investment Grade Fixed Income 6,484,247 6,484,247 Investment Grade $$ Investment Grade Fixed Fixed$Income Income 6,484,24710.8% Israel Bonds Israel $ 5,450,000 5,450,000 $$ Israel Bonds Bonds 5,450,000 9.1% Investment Returns as of September 30, 2025 6,067,147 6,067,147 High Yield Fixed Income $$ High Yield 6,067,14710.1% High Yield Fixed Fixed Income Income$ US Large Cap Equity $$ 38,384,581 38,384,581 US Large Equity 38,384,58164.2% US Large Cap Equity $ Total JFLVCap Allocation US Small Cap Equity US Small 3,004,661 US Small Cap Equity Equity $ Value $$ 3,004,661 Percent 3,004,661 5.0% Asset ClassCap
Total Investment $ $ Total Investment Strategies TotalStrategies Investment Strategies Deposits & Money Market Funds
100.0% $$ 59,798,423 59,798,4230.7% 407,787 59,798,423
$ 3$years $ $ 16.13% $
$ 14.50%
6,484,247 5 5,450,000 Years 6,067,147 38,384,581 12.78% 3,004,661
10.8% 9.1% 10 Years 10.1% 64.2% 9.42% 5.0%
Moderate Allocation Index
Investment Grade Fixed Income Israel YTDBonds 1 year High Yield Fixed Income US Large Cap Equity 11.55% 11.72% US Small Cap Equity Total Investment10.43% Strategies 13.68%
LVJF Investment Grade Fixed Income
5.78%
4.16%
5.29%
0.73%
2.19%
6.13%
2.89%
4.92%
Performance Total LVJF Portfolio
Barclays US Aggregate Bond Index
nce Performance Performance
LVJF High Yield Fixed Income FTotal Portfolio LVJF Portfolio Total LVJF Portfolio 50% HYG/ 50% JNK Performance
Allocation Moderate Allocation ModerateIndex Allocation Index Index
YTD 11.55% 13.68%
Total LVJF Portfolio LVJF Equity
1 year YTD YTD
3 years 11 year year
59,798,423 7.60%
-0.45%
5 Years 33 years years
6.49%
9.81% 4.86% 11.72% 6.35% 16.13% 12.78% 11.55% 11.72% 16.13% 11.55% 11.72% 16.13%
7.11% YTD
7.13% 1 year
10.58% 3 years
11.55% 14.12%
11.72% 16.52%
16.13% 23.64%
10.43% 13.68% 13.68%
14.50% 10.43% 10.43%
54.75% Years
7.60% 14.50% 14.50%
12.78% 15.69%
11
11 66
10 10
100.0% 7.86%
1.80%
10 Years 10 55 Years Years 10 Ye Ye 4.36% 9.42% 12.78% 12.78%
9.42 9.42
5.13% 10 Years
7.60% 7.60%7.86%
7.86% 7.86
9.42% 11.44%
estment Grade Fixed Income LVJF Grade Fixed LVJF Investment Investment Grade Fixed Income Income 5.78% Moderate Allocation Index
4.16%10.43% 5.29% 0.73% 5.78% 4.16% 5.78% 4.16% 5.29% 13.68% 14.50% 5.29% 7.60% 14.83% 17.60% 24.77% 16.34%
2.19% 0.73% 0.73% 7.86%
2.19 2.19
MSCI AC World Index Excluding USA, net US Aggregate Index Barclays US Aggregate Bond Index Barclays US Bond Aggregate Bond Index LVJF Investment Grade Fixed Income 6.13%
2.89% 16.45% 4.92% -0.45% 6.13% 2.89% 6.13% 2.89% 4.92% 26.02% 20.89% 10.17% 5.78% 4.16% 5.29% 4.92% 0.73%
1.80% -0.45% -0.45% 8.12% 2.19%
1.80% 1.80
Standard & Poor 500 dividend
Barclays US Aggregate Bond Index
h LVJF Yield High FixedYield Income Fixed LVJF High Yield Fixed Income Income
6.49%
6.13%
6.35% 6.49% 6.49%
2.89%
4.92%
9.81% 6.35% 6.35%
-0.45%
4.86% 9.81% 9.81%
15.18%
1.80%
4.86% 4.86%4.36%
4.36 4.36
The Lehigh Valley Jewish Foundation investment strategy is administered by an active Investment Committee and implemented by external professional investment managers and advisors.
LVJF High Yield Fixed Income
6.49%
6.35%
9.81%
50% HYG/ 50% JNK
7.11%
7.13%
10.58%
Source: Goldman 7.11% / 50% JNK 50% JNK 50% HYG/ HYG/ 50% JNKSachs as of September 30, 2025
uity LVJF LVJF Equity Equity
14.12%
&Standard Poor 500 & Standard & Poor Poor& 500 500 Standard Poor 500
7.13% 7.11% 7.11%
10.58% 7.13% 7.13%
5.13% 5.13
5.13%
11.44% 15.69% 15.69%
11.44 11.44
14.83%
17.60%17.60% 24.77% 16.34% 14.83% 17.60% 14.83% 17.60% 24.77% 14.83% 24.77% 24.77% 16.34%
15.18% 16.34% 16.34% 15.18%
15.18 15.18
MSCI AC World Excluding USA,net net World Excluding USA, net USA, MSCI AC World Index Excluding MSCIIndex AC World IndexIndex Excluding USA, net 26.02% dividend dividenddividend
26.02% 20.89% 20.89% 10.17% 16.45%16.45% 20.89% 10.17% 26.02% 16.45% 26.02% 16.45% 20.89%
8.12% 8.12% 10.17% 10.17%
8.12% 8.12
14.12%
23.64% 16.52% 16.52%
4.75%
4.36%
4.75% 4.75%5.13%
15.69% 23.64% 23.64%
LVJF Equity
16.52% 14.12% 14.12%
4.86%
4.75% 10.58% 10.58%
16.52%
23.64%
15.69%
11.44%
The Lehigh Valley Jewish Foundation investment strategy is administered by an active Investment Committee and implemented by external professional
investment managers and advisors. Valley Jewish Foundation investment strategy is administered by an active Investment Committee and implemented by external professional The Valley Jewish Foundation investment strategy by Investment Committee and by The Lehigh Lehigh Valley Jewish Foundation investment strategy is is administered administered by an an active active Investment Committee and implemented implemented by external external profe profe managers and advisors. investment managers and advisors. investment managers and advisors. Source: Goldman Sachs as of September 30, 2025
ldman Sachs as of September 30, 2025 Source: Goldman Sachs September 30, Source: Goldman Sachs as as of of September 30, 2025 2025
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Thank you to our Lehigh Valley Jewish Foundation partners: