EN INGO°
The Detroit Jewish community's
rainy-day fund has nearly tripled in 10 years.
But the skies remain partly cloudy.
ALAN HITSKY ASSOCIATE EDITOR
ILLUSTRATION BY GEORGE SCHILL
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efore Leonard Brooks
died last year, he made
certain he left a legacy to
Detroit Jewry.
A successful investor in
real estate and movie the-
aters, Mr. Brooks, of
West Bloomfield, had for
years contributed $3,000 annually to
the Allied Jewish Campaign. After his
death, a clause in his will provided a
$2 million legacy to the Campaign
through the United Jewish Founda-
tion (UJF). The interest from his gift
will be added annually to the Cam-
Paign.
Mr. Brooks' gift is the latest in an
avalanche augmenting community
coffers. In the last 10 years, endow-
ment funds held by the UJF have
grown from $40 million to $100 mil-
lion. The total assets of the founda-
tion, which also holds title to Jewish
communal land, buildings and equip-
ment in metropolitan Detroit, are
valued at $150 million. Through en-
dowments, leaders hope to reach the
$200 million mark by the turn of the
century.
Throughout North America, the
Council of Jewish Federations reports,
endowments held by Jewish federa-
tions have grown from $1.7 billion in
1986 to just under $3 billion today.
Contributing to this pot of gold are
several factors: tax advantages to the
donors as well as their interest in
helping the Jewish community.
More than 800 funds have been cre-
ated by Detroit-area donors, includ-
ing 123 in the last year. The funds can
be designated for specific purposes,
such as special-needs programs at the
Jewish Community Center or senior
camping at Fresh Air Society's Butzel
Conference Center. Or the funds can
be undesignated, giving the Federa-
tion and UJF the most latitude in de-
ciding how to use the interest earned
each year.
The individual endowments range
from $5,000 to $5 million.
For the donors, there can be con-
siderable tax advantages in creating
a Jewish communal endowment.
They can receive charitable deduc-
tions in the year of the gift and have
access to expert management. They
can create a permanent vehicle for
flexible or restricted communal pur-
poses and, in some cases, continue to
receive income during the donor's life-
time with a charitable fund created
at death.
Endowments are not just for the
wealthy. While the United Jewish
Foundation has a minimum level to
establish a fund — $5,000 — many
insurance funds have been created in
the last few years by individuals. The
face value of the policy (a minimum
of $25,000) is given to the United Jew-
ish Foundation at the time of the
donor's death, but the annual premi-
um is tax deductible.
Liz Kanter Groskind, a 31-year-old
insurance professional and a past
president of Federation's Young Adult
Division, bought two policies in the
last year. One is a $30,000 policy that
will benefit the Allied Jewish Cam-
paign. The second, for $25,000, is for
the Jewish Vocational Service.
When the money comes in — from
current funds, bequests or insurance
— the UJF makes some promises. It
guarantees to the donors it will
achieve a 10 percent return for en-
dowments designated to benefit the
Allied Jewish Campaign, and a 7.5
percent return on all other funds. UJF
past president Jack Robinson says the
Rainy Day Savings
National
In 1986 $1.7 billion
In 1993 $3.0 billion
Detroit Area
In 1984 $40 million
In 1994 $100 million
fund has achieved a 10-year rolling
average of 14.5 percent return on in-
vestment.
To do that, UJF's investment com-
mittee hires experts. Under the chair-
manship of Alan E. Schwartz, the
committee makes no investment de-
cisions itself. It retains on a rotating
basis some of the major investment
fund managers in the United States;
other national fund managers and a
major local bank are hired to review
the decisions.
Mark Davidoff, chief financial offi-
cer for Federation, said 60 percent
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