Gift of Life Insurance
Life insurance provides a simple way for you to give a
significant gift to charity, with tax benefits that you can
enjoy during your lifetime.
Giving life
insurance through your community foundation is one of the
simplest ways to make a significant contribution to your
community and establish your legacy of giving. You can make a
gift when life insurance is no longer needed for personal
financial wealth replacement. You may receive a number of tax
benefits, including reduced income taxes and estate taxes. And,
if you choose to continue paying premiums through your community
foundation, you will be entitled to a charitable contribution
deduction of up to 50 percent of your adjusted gross income.
You can replace the
dollar value of an asset transferred to your community
foundation with a life insurance policy. Or you can use regular
payments from a Charitable Gift Annuity or Charitable Remainder
Trust to establish an irrevocable life insurance trust. The
trust can purchase insurance on your life to benefit your heirs.
This way, you can make a gift to your community foundation and
replace the value of this gift within your estate with life
insurance proceeds.
How it works:
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You make your
local community foundation the owner and irrevocable
beneficiary of your life insurance policy—you can either
give a paid-up policy or continue to pay premiums.
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You receive a
tax deduction for the approximate cost or fair market value,
whichever is less. If the policy is paid up, you may receive
an immediate tax deduction. If it is not, you can claim
continuing tax deductions on premium payments you make
directly or through gifts to the community foundation.
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Upon your death,
we set up a special fund in your name, in the name of your
family, or in honor of any person or organization you
choose.
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Our professional
program staff considers your charitable wishes and
determines the community needs that would be most impacted
by grants from your gift.
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Our board issues
grants in the name of the fund you establish (if you prefer,
your awards can be made anonymously).
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We handle all
the administrative details.
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Your gift can be
placed into an endowment that is invested over time.
Earnings from your fund are used to make grants addressing
community needs. Your gift—and all future earnings from your
gift—is a permanent source of community capital, helping to
do good work forever.
