FAQs
Frequently asked questions about the Temple Israel Foundation
What is the Temple Israel Foundation?
Temple Israel Foundation is a non-profit charitable corporation that was created to own and manage endowment funds exclusively for the benefit of Temple Israel of Columbus, Ohio.
How is Temple Israel’s Foundation endowment used?
The endowment consists of perpetual funds in which the donor’s gift remains invested permanently and generates income. The endowment provides growth and stability in perpetuity for Temple Israel. Every year the Foundation makes available to Temple Israel the income then available from the endowment, and Temple Israel is permitted to use this money, up to an amount capped at 4.5% of the endowment’s total market value. During the fiscal year that is ending June 30, 2023, Temple Israel received $140,000 from the Foundation to help it meet its operating budget.
How big is the Temple Israel Foundation’s endowment?
As of March 31, 2023, the total market value of the endowment was over $3 million, although the value can fluctuate as stock and bond prices fluctuate.
Can’t Temple Israel Columbus just rely on dues and ongoing charitable contributions?
It can, and some synagogues do, but doing so is not prudent because it focuses only on how things are today. The Temple Israel Foundation was founded in 1969 by several congregants who saw the need to provide for, and augment, religious life at Temple Israel. They realized the need to support customs and services, not only integral to the life of Temple Israel at that time, but also the need to support them in the future. With this in mind, several congregants endowed funds to support such perpetual activities as the religious school, the general education fund, cemetery memorial fund and the general fund. Temple Israel Foundation can set aside the assets that the future Temple Israel will use to meet the needs of the time.
Why support the Temple Israel Foundation?
Just as Temple Israel contributors recognized in 1969, we owe it to future generations to ensure a healthy, vibrant and dynamic Temple Israel that meets the needs of the Columbus Jewish community. Perhaps a better question is, why not support Temple Israel Foundation?
What is an endowment?
An endowment generally consists of two types of assets:
- Principal – this is the amount that donors contribute to the endowment and is invested in stocks, bonds and other assets, plus (or minus) the amount such assets appreciate (or depreciate) in value over time.
- Income – this refers to interest and dividends paid on the invested principal.
Most foundations keep the principal amount intact, and use only the income generated by it to support its philanthropic goals. It is Temple Israel Foundation’s intention to maintain the endowment’s principal in perpetuity, and to use only the interest and dividend income the principal produces to support Temple Israel’s needs.
Can Temple Israel Columbus use the money it receives from the Foundation for any purpose?
Some Temple Israel Foundation contributors may designate their gifts as “restricted,” meaning that the gift must be used for a specified purpose, such as education, music, prayer books, etc. The income generated by these gifts therefore must be used by Temple Israel for the purposes specified. Other gifts are designated as “unrestricted,” which means the income generated by such gifts can support the general needs of Temple Israel. Gifts made without any specification are deemed to be “unrestricted.”
Why does Temple Israel Columbus ask members to pay annual dues if there is an endowment?
$X million may sound like a lot of money, but remember, we intend to use only the interest and dividend income the endowment generates. For these purposes, the value of our endowment is still rather small. Temple Israel has an operating budget of $__ for the fiscal year ending June 30, 2023. The operating budget is used to pay the salary and benefits of Temple Israel’s clergy and professional staff, support the building’s utilities and day-to-day maintenance, provide insurance, support the religious school and programming, and pay for security. And that’s just to start! Although the Foundation contributed $140,000 towards this budget, this amount represented only __% of the overall operating budget. In order for Temple Israel to exist and operate as it does today, it relies on annual dues paid by its members and non-endowment charitable donations made throughout the year.