Legacy is built on decisions made today.
Gift of Life Insurance
Life insurance provides a simple way for you to give a significant gift to charity and establish your legacy, with tax benefits that you can enjoy during your lifetime.
You can make a gift when life insurance is no longer needed for personal financial wealth replacement by either giving a paid-up policy or continuing to pay premiums. You may receive a number of tax benefits, including reduced estate and income taxes. And, if you choose to continue paying premiums through the Foundation, you will be entitled to a charitable contributions deduction of up to 50 percent of your adjusted gross income.
Donors should consult their professional advisor before donating a life insurance policy.
A gift that pays.
When his two daughters were young, Zachary Ding bought a life insurance policy to provide for his family in the event of his death. Now, he’s 65, and things have changed. “My daughters are both grown and doing very well for themselves, and over the years, my wife and I have become fairly comfortable—she will no longer need the death benefit from my policy,” says Zachary. The Dings support and volunteer for a youth mentoring program, as well as their local museum. “We’ve always planned to leave something for important community organizations when we pass,” says Zachary.
After talking with their financial planner, Zachary decided to give his life insurance policy to his local community foundation. “After giving my policy, I received a significant charitable tax deduction,” says Zachary. “We had owned the policy for so long that we could choose to stop paying the premiums and maintain a sizable death benefit.”
The Ding Fund will be established with proceeds from the insurance policy to benefit youth development and other community organizations.
Bequest of Life Insurance
Life insurance sustains your spouse or your family in the event of your death, but others choose to preserve a community. A bequest of a life insurance policy to the Foundation is a simple way for you to give a gift to a charity.
By naming the Foundation as the owner and irrevocable beneficiary of your life insurance policy, you can be assured of the permanence of your gift and can also enjoy tax benefits for a lifetime.
Once you gift your life insurance policy to the Foundation, you receive a tax deduction for the approximate cost or fair market value, whichever is less. If your policy has been paid, you may receive the deduction immediately. If you are still making premium payments, you may claim deductions on each one you make directly or when you make a gift to the Foundation.
Upon your death, the monies from your life insurance policy are:
- Established as a fund in your name, in the name of your family, or in honor of any person or organization you choose;
- Pooled with our other endowment funds and reinvested;
- Utilized to make grants to organizations in your community. Because your gift is a part of the Foundation’s permanent capital, your money will help us do good work long after your life comes to a generous end.
Our staff can help you establish a fund for you. Today, we handle all the administrative details. In the future, we issue grants to charities, fields-of-interest or emerging needs in the name of the fund you establish.