Life insurance can be a valuable asset for charitable giving. The donor enjoys substantial income and estate tax advantages while the charity receives both current and future benefits.
How to Make a Gift of Life Insurance
A gift of new life insurance can be arranged by applying for a policy and naming The Foundation as owner and beneficiary. The initial and future premiums should be gifted directly to The Foundation to maximize the allowable deductions to the donor. The donor may elect to contribute the premiums annually or in a lump sum. A gift of existing life insurance can be achieved by utilizing the following form:
“I, John Donor, hereby assign to the Jewish Community Foundation of Los Angeles, all of my right, title and interest in the life insurance policy on my life issued by ABC Insurance Company, No. 123, in the face amount of $50,000.”
The policy should be delivered to an officer or designated representative of The Foundation.