Many of us would like to make a more significant gift than our current assets allow. A gift of life insurance allows many donors to make a larger charitable gift than they ever thought possible. 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. Donating a life insurance policy to your donor advised fund (DAF) at the Community Foundation of Johnson County allows the insurance payout from one policy to be distributed to multiple nonprofits. Alternatively, donors can gift to their favorite nonprofit’s fund. Donors make premium payments that are affordable to them during their lives. The ultimate insurance payout is often much larger than the total premiums paid over-time and premiums are often tax-deductible.
Financial benefits of using life insurance as a charitable vehicle:
- New or existing policies can be donated.
- Make affordable gifts over time in the form of premium payments.
- The ultimate payout is often much larger than the total premiums paid.
- Ongoing premium payments often result in charitable income tax deductions.
- A gift of life insurance may reduce the donor’s taxable estate.
- By using a DAF, one life insurance contract can benefit multiple nonprofit organizations. A DAF is a flexible charitable giving tool that allows you to give to causes you care about, while we take care of the managing responsibilities.
