Empowering Philanthropy: The Jewish Communal Fund’s CEO Talks Donor Advised Funds, Jewish Impact, & a Vision for the Future

Edited by: TJVNews.com

The Jewish Voice recently had the distinct honor of speaking with Rachel Schnoll, the CEO of the Jewish Communal Fund (JCF). In this role, Ms. Schnoll oversees the largest Jewish donor advised fund in the country and helps to facilitate philanthropy for 6,800 fundholders. JCF boasts a track record of over 50 years of strong governance, prudent management, and making charitable giving simple and efficient for its fundholders. Since JCF was founded in 1972, its fundholders have granted more than $9 billion to charity.

Before joining JCF, Rachel served as a Managing Director at Goldman Sachs, one of the world’s leading investment banks. There, she led the growth and development of a cutting-edge digital client experience platform designed to support financial advisors. This platform focused on delivering seamless digital solutions to enhance client engagement, enabling advisors to better serve their clients’ financial needs. Rachel also headed the Product Strategy group within Goldman Sachs Asset Management. In this role, she oversaw teams responsible for the governance, communication, and launch of a diverse range of financial products, including mutual funds, exchange-traded funds (ETFs), and other investment vehicles. Her work consistently centered on ensuring her clients’ financial goals were not only achievable but aligned with their broader life aspirations.

Throughout her career, Rachel has been driven by a commitment to helping individuals achieve financial clarity, confidence, and control. Whether developing innovative digital solutions or crafting strategic investment approaches, her work has empowered clients to navigate the complexities of financial planning with ease and assurance. Her move to JCF reflects this same passion but with a new focus on philanthropy. “I am honored to continue this effort in the philanthropic world,” Rachel has said, underscoring her commitment to helping donors maximize their impact while simplifying the giving process.

Rachel’s leadership style is deeply rooted in her personal values and her connection to Jewish heritage. As a Brooklyn resident, she is actively engaged in her local Jewish community alongside her husband and three children. Her work at JCF represents not just a professional role but a continuation of her lifelong dedication to strengthening Jewish identity and promoting tikkun olam (repairing the world).

She was kind enough to grant The Jewish Voice the following interview:

1. How does a donor advised fund work and what are its benefits compared to traditional charitable giving?
2. A donor advised fund (DAF) is like a charitable bank account that simplifies your giving. You contribute to the DAF, receive an immediate tax deduction, and then recommend grants to charities over time. It offers flexibility with a potential for tax-free growth. While traditional charitable giving certainly has its place, DAFs offer unique advantages that can significantly enhance your philanthropic experience and impact.

First, DAFs provide greater tax efficiency than giving directly to multiple charities over time. You receive an immediate deduction when you contribute, even if you haven’t chosen your charities yet. Additionally, DAFs like the Jewish Communal Fund offer a diversified investment platform so your contributions can grow tax-free. Donating appreciated assets also avoids capital gains taxes. Second, DAFs offer more flexibility. You can recommend grants to multiple charities at your own pace, maintain anonymity, and easily track your giving. Finally, DAFs simplify philanthropy by consolidating your giving into one account with online donations management tools.

1. What are the primary benefits of using a donor advised fund for individuals looking to engage in philanthropy?
2. DAFs maximize impact through tax-free growth of assets, allowing for larger grants over time. They also enable strategic giving, whether responding to immediate needs or planning long-term. DAFs can even become a vehicle for family legacy giving, involving future generations in philanthropy.

For JCF, in particular, our fundholders benefit from a double bottom line, with our Board of Trustees directing a $2 million gift from our revenues to the annual UJA-Federation of New York campaign. Our board also directs additional annual grants on behalf of our JCF community to support organizations that promote the welfare and security of the Jewish community at home and abroad.

1. How does a donor advised fund differ from a private foundation and why might someone choose to establish a DAF instead?
2. A donor advised fund (DAF) and a private foundation both offer advantages for charitable giving, but they have distinct characteristics. A private foundation is a separate legal entity that you establish and manage, requiring more administrative overhead and regulatory compliance. There is a 1%-2% excise tax on net investment income with a private foundation but none with a DAF. A JCF fund can protect a donor’s confidentiality in a way a private foundation cannot. With a DAF, your cash contributions are deductible up to 60% of adjusted gross income (AGI) and with a private foundation is up to 30% of AGI.

Similarly, appreciated marketable securities are deductible at fair market value up to 30% of AGI with a DAF and deductible at cost up to 20% AGI with a private foundation. A Private Foundation has a required annual distribution of 5% of assets while a DAF is flexible. Though, JCF Fundholders distributed 35% of total assets to charities in fiscal year 2024 without the requirement. Interestingly, we see many individuals and families who have both a private foundation and a DAF at JCF. They often start with a foundation and, as their philanthropic needs evolve, they find that transitioning to a DAF provides greater efficiency and allows them to streamline their charitable giving.

1. What are the advantages of donating complex assets through the Jewish Communal Fund? Can you provide examples of these types of donations?
2. Donating complex assets through the Jewish Communal Fund (JCF) offers several advantages:

Tax efficiency: Avoid capital gains taxes that you would normally incur if you sold the assets yourself and then donated the proceeds.

Maximize your donation: Donate the full fair market value of the asset, allowing for a larger charitable deduction.

Simplicity: JCF handles the sale of the asset, eliminating the complexities and time associated with selling it yourself.

Flexibility: Support a variety of charitable causes with the proceeds from the sale.

Expertise: JCF has experience in handling a wide range of complex assets, including real estate, artwork, and business interests.

JCF accepts a variety of complex assets, including real estate, restricted stock, privately held business interests, artwork and collectibles, and cryptocurrency. The acceptance of complex assets is subject to JCF’s approval on a case-by-case basis.

1. In your view, what sets the Jewish Communal Fund apart from other donor advised funds?
2. At JCF, we’re deeply committed to both the Jewish community and to providing exceptional service to our donors. What truly sets us apart is our unique combination of communal impact and personalized attention. Each year, JCF makes a substantial grant to UJA-Federation of New York’s annual campaign, typically around $2 million, and we allocate an additional $1-$2 million annually to support various initiatives within the Jewish community through our Special Gifts Fund.

This demonstrates our dedication to collective action and strengthening Jewish life. Furthermore, we pride ourselves on offering a level of personalized service that you won’t find at larger commercial institutions. Our dedicated team takes the time to understand each donor’s philanthropic vision and provides tailored guidance and support throughout their giving journey. This personalized approach is a hallmark of JCF and a key reason why our donors choose to partner with us.

1. Post-October 7, what trends have you observed in the types of causes that DAF donors are supporting?
2. After October 7th, we saw a significant increase in giving to support Israel and combat antisemitism. Donors maintained their charitable commitments while also responding to this crisis, demonstrating “yes and…” giving.

In the wake of October 7th, we saw the true power of collective giving. Our donors responded with incredible generosity, demonstrating their commitment to their longstanding charitable priorities and our community’s urgent needs. In the year following Oct. 7, JCF donors gave $148 million to Israeli causes, a 35% increase over the previous year. Fundholders were able to quickly direct funds to urgent needs such as emergency medical care, mental health services, and rebuilding communities while continuing to support their longstanding charitable interests. In total, JCF fundholders increased their giving by 15% over the past year, giving more than $1 billion to over 11,000 charitable organizations.

1. Could you discuss some specific ways in which the Jewish Communal Fund supports and strengthens the Jewish community?
2. Beyond our direct financial contributions to UJA-Federation and other Jewish causes, JCF fosters a strong sense of collective giving within the Jewish community. When our donors recommend grants to secular organizations through their JCF funds, it makes a powerful statement about their commitment to tikkun olam and our shared responsibility to make a positive impact on society as a whole. We also provide educational resources and programming to help our donors make informed giving decisions and connect with the causes they care about most. By empowering our donors to be thoughtful and strategic philanthropists, we strengthen the overall fabric of the Jewish community and its ability to effect positive change.
3. What are the Jewish impact investment options available through JCF, and how do they align with the values and goals of your donors?
4. JCF recognizes that many of our donors are interested in aligning their investments with their Jewish values. To that end, we offer a range of impact investment options that support the Jewish community and promote social good. These include:

Hebrew Free Loan Society: Providing interest-free loans to individuals and families in need within the Jewish community.

Ogen: Investing in social businesses that create jobs and economic opportunities in Israel’s periphery and for marginalized populations.

JLens: allows investors to align their capital with Jewish values and advocates for Jewish communal priorities in the corporate arena.

Israel Bonds: Supporting the State of Israel through investment in government bonds.

VanEck Vectors Israel ETF: offers exposure to Israeli companies in the BlueStar Israel Global Index

We also offer a range of ESG investment options for those fundholders interested in more conventional impact options. These options resonate deeply with our donors’ values by providing opportunities to create both financial returns and positive social impact within the Jewish community and beyond.”

1. What are some of the future goals or initiatives JCF is working towards to further benefit the Jewish community and beyond?
2. Looking ahead, JCF is committed to expanding our impact by:

Deepening our support for Jewish causes: We continue to seek new and effective ways to address the evolving needs of the Jewish community and strengthen Jewish life locally, in Israel, and around the world.

Supporting Legacy Planning: Many fundholders are 2nd or 3rd generation, and we want to continue to help people pass their philanthropic goals on to their families and keep their legacies alive.

Promoting impact investing: We are actively expanding our impact investment offerings to provide donors with even more opportunities to align their investments with their values.

Leveraging technology: We are investing in technology to enhance the donor experience and make giving through JCF even more seamless and efficient.

Engaging the next generation of philanthropists: We are developing innovative programs and resources to inspire younger donors and empower them to become active participants in charitable giving.

By pursuing these initiatives, we aim to ensure that JCF remains at the forefront of Jewish philanthropy and continues to make a meaningful difference in the lives of others.

1. On a personal note, what motivates you in your role as CEO of the Jewish Communal Fund, and what do you find most rewarding about your work?
2. I am incredibly inspired by the generosity and compassion of our donors. Every day, I witness firsthand their deep commitment to making a positive impact on the world. It is an honor to lead an organization that plays such a vital role in facilitating their philanthropy. The most rewarding aspect of my work is seeing the tangible results of our donors’ generosity. Whether it’s supporting vital social services, advancing medical research, or promoting education and the arts, their giving makes a real difference in the lives of countless individuals and families. Knowing that JCF plays a part in making that possible is incredibly fulfilling.