|Capuchin Franciscan Friars
Office of Planned Giving
Three Ways to make a major gift with ease
The use of life insurance to fulfill your philanthropic intentions or crate a legacy to honor your life's work makes
perfect sense for a number of situations. Take a look at the three common scenarios making the most of life
1. The charitable organization with which you are affiliated has come to depend on you for support and guidance,
much like a key employee in a commercial enterprise. An insurance contract provides the opportunity to guarantee
ongoing support for a specific project that is important to you or to advance the charity's reputation for excellent
programs and services. By leveraging small amounts of annual premiums, you may find that a larger gifts develops
2. If you have old policies once acquired for other reasons (e.g., mortgage or debt risks, education for children,
survivor income security or veteran's policies), you may no longer need the coverage and choose to transfer
ownership to a charitable organization such as ours. Considering transferring the ownership of the contract to us,
then in addition to removing the asset from your estate, it will often generate an income tax deduction equal to the
lesser of cost basis or fair market value of the policy if all the rights of ownership are completely transferred.
3. Another use of life insurance is to offset charitable gifts of assets by replacing the value of your gift so your heirs
aren't unduly affected. These so-called "wealth replacement" policies are very popular when working with large
charitable gifts. If the life insurance is properly structured and held outside of the estate, then the proceeds pass to
heirs without income-gift or estate-tax liabilities.
Should you consider the gift of an insurance policy? A good place to start is to review what policies you have in
place; don't forget any group of employer plans. Look careful at the ownership and beneficiary designations.
Oftentimes you discover the beneficiaries listed no longer need the insurance benefits or, because of family changes,
need to be updated. These policies offer a great opportunity to introduce a charitable gift into the equation.
Consider naming a charitable organization such as ours as the beneficiary for a portion of the death benefit, or
maybe choose to transfer the ownership of the entire policy by absolutely assigning it to us. Either way, you have left
a legacy that exemplifies the caring nature of your life's mission and helps to ensure the fulfillment of our mission to
Billions of dollars of life insurance are in force in this country, and frequently these policies are no longer needed for
their original purposes. If you would like to explore the use of insurance along with other gift options in your
philanthropic plans, we would be happy to answer any questions you might have and show how this generous act can
fit your circumstances.
|The information on this site is not intended as legal, tax or investment advice. For such
advice, please consult an attorney, tax or investment professional.