What is this campaign about?
The Jewish Endowment Foundation of Louisiana (JEF) will manage a comprehensive one-year matching campaign to raise endowed funds to benefit the collective community—specifically five of the Greater New Orleans area Jewish community agencies:
- Jewish Federation of Greater New Orleans
- Jewish Community Center
- Jewish Community Day School
- Jewish Family Service
- Tulane Hillel
Each of these agencies is fully engaged in this effort to create a successful campaign that will only strengthen our community, for now and for our future.
What is the campaign goal?
The goal is to initially raise a total of $5 million collectively in order to create new $1 million endowment funds for each of the five entities to be held at JEF.
How will each agency benefit from its own endowment?
The current plan is that after growing in the investment pool for three years, 4% of the balance will be distributed from each fund on a rolling three-year average, annually in perpetuity. It is up to each agency and its Board how these funds will be used each year.
What’s the big picture?
True to its mission, JEF wants to ensure a secure future and an enduring legacy for Federation and its constituent agencies. A significant comprehensive campaign of this measure would transform our community by allowing agencies to have budget-relieving funds live in perpetuity.
Why are we launching this endowment campaign now?
JEF was originally established to serve as our community’s “rainy-day fund,” but after the most recent challenges of COVID and Hurricane Ida, JEF understands that its General Fund will never be able to make any one organization completely whole. Compared to other Jewish communities our size, we are woefully lacking in endowments for our major agencies and institutions. Now is the time to plan for the long-term needs of our community.
The impetus for creating this community wide campaign began when an anonymous donor came to JEF proposing a matching campaign to create and grow endowment funds for Federation and its four constituent agencies: JCC, Jewish Community Day School, Jewish Family Service, and Tulane Hillel. JEF secured two more donors and a total initial commitment of $250,000 for a 2:1 match (for every $2 that is donated, JEF will contribute $1 from the available matching funds). Conversations with each of the three anonymous donors have assured JEF of their commitment to provide more matching funds needed to make this campaign a success for our community.
What exactly is an endowment?
A permanent endowment is an invested pool of money that provides a reliable source of income in perpetuity. The endowment also grows over time with additional gifts from potential donors through gift planning and legacy giving. JEF manages these funds and provides annual distributions to a nonprofit beneficiary organization based on the terms set when the fund was established. For this campaign, the funds in each endowment will be vested for three years and will be available for distribution in 2025. At that time, 4% of the fund balance on a rolling three-year average will be distributed to the agency. For example, a fund with an average balance of $1 million will receive $40,000. As contributions to the endowments will be encouraged long after the campaign ends, an increasing fund balance will yield larger annual distributions.
These endowment funds may provide annual support for the agencies’ operating budgets, or may be used for other specific priorities, programs or activities.
How much is in each of the agency endowment funds today?
To date, none of the five agencies hold an endowment at JEF so each fund will rely on campaign gifts to grow its balance to the $1 million goal, and beyond.
Why should I give my gift to JEF instead of directly to each agency individually?
The focus of this campaign is to create endowments for each agency for its long-term needs. While immediate needs are important, it is critical for large agencies and organizations in our community to plan for the future. The annual distribution may be earmarked for any purpose or activity by each agency, and in the event of a crisis, these endowments can offer options to meet new challenges by providing greater financial flexibility and self-sustaining income streams.
Should I take the annual contributions planned for these agencies and wrap them into the endowment?
No. While endowment funds most often go toward supporting long-term needs, annual gifts typically support current operating needs. They are basically two kinds of money: money to grow on and money to live on. By wrapping both gifts into the endowment, the more immediate needs cannot be addressed. There is an opportunity to make a dual ask of the potential donor to support both this endowment campaign in addition to their annual commitment.
Can I make a commitment to the campaign over time?
Yes, if you would like to make a multi-year gift, we just ask that your gift is paid off in up to three years.
How can I make a gift?
Contact Bobby Garon ([email protected]) or Debbie Berins ([email protected]) or call 504-524-4559.