Gifts of Life Insurance
Giving life insurance through The Community Foundation is one of the simplest ways to make a significant contribution to your community and establish your legacy of giving. It provides an easy way for you to give a significant gift to charity, with tax benefits that you can enjoy during your lifetime.
How it works
- You make The Community Foundation the owner and irrevocable beneficiary of your life insurance policy.
- 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.
- 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.
- Our professional staff administers your fund according to the instructions you provided previously, as an unrestricted, preference, designated or scholarship fund.
- Our board issues grants in the name of the fund you establish (if you prefer, your awards can be made anonymously).
- We handle all the administrative details.
- Your gift is 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.
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.
You can replace the dollar value of an asset transferred to The 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.