Is your organization educating your donors about Gifts of Insurance? Only 9% of assets are held in cash, so nonprofit organizations must be creative in securing other types of gifts. Here is a basic overview of insurance gifts.
OPTIONS FOR GIFTS OF INSURANCE
In addition to outright gifts of insurance, a variety of
charitable insurance plans are available to meet your needs.
Perhaps a donor does not want to give your
life insurance policy outright to your
organization, but instead desire life income.
An excellent option is to transfer your
policy to fund a charitable remainder
unitrust. The unitrust will provide you with
a current income stream for your lifetime
or for a term of years. You will receive a
charitable income tax deduction in the year
the trust is established and benefit from tax
savings that could be spread over a number
of years. Our organization will benefit from
the future remaining trust value.
INSURANCE FOR GIFT ANNUITY
Another life insurance income option
is a gift annuity. Your insurance may
be transferred to fund a charitable gift
annuity, providing you with fixed payments
for your life. The payments can be quite
high depending on your age and a portion
of your payments may be tax free. Your
income stream may begin right away or in
the future. Either way, you benefit from a
current charitable deduction in the year
the gift annuity is set up. Your organization will receive
the policy proceeds at your death.
BEQUEST OF INSURANCE
Life insurance proceeds can make a wonderful gift to charity. The gift of life
insurance can be made by simply naming an organization as the beneficiary of your policy.
Your life insurance proceeds will help further the organization’s mission of good work and your estate will benefit from an estate tax charitable deduction
based on the value of the proceeds paid.
INSURING A PLAN FOR THE FUTURE
If you are like most individuals, you will
own insurance sometime during your life.
However, as time goes on, your life
insurance policy may no longer be
needed for its original use. For
individuals who desire to help an
organization, there are a number of
charitable life insurance options to
INSURANCE GIFT BENEFITS
The benefit of making a charitable gift
of life insurance is a current charitable
income tax deduction with tax savings
that may be enjoyed for up to six years.
You also have the satisfaction of knowing
that your policy proceeds are going to
benefit a worthy cause.
MAKING A GIFT OF LIFE INSURANCE
It’s easy to make an outright gift of a life
insurance policy. Simply contact your
insurance company and fill out the
proper change of ownership form,
designating your preferred organization as the new
How are you creatively securing non-cash gifts?