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You can make a significant contribution to the community
without making a large gift today by donating a life insurance
policy to the Foundation. You can give existing policies that
are no longer needed, or establish a new policy with the Foundation
as the owner and beneficiary. The proceeds of the gift can
create a new endowment fund in the future for causes that
are important to you.
To make a gifts of a new life insurance policy, you can establish
a policy and designate the Foundation as the owner and beneficiary.
New life insurance policy gifts are especially attractive
to younger donors who have other financial commitments today
but wish to make a significant gift in the future.
You can also donate an existing policy. This kind of donation
is relatively simple. You may do so by signing a change of
ownership/beneficiary form supplied by the insurance company.
You may then claim a charitable deducation for approximately
the policy's cash value. The proceeds of the policy are completely
removed from your estate.
Donors are only required to make contributions to the Foundation
in lieu of any premium payments due on the policy. These contributions
are tax-deductible.
Example:
You purchase a life insurance policy on the lives of you
and your spouse with a face value of $100,000. You designate
the Foundation as the owner and beneficiary. You have specified
that the proceeds will create a Permanent
Annual Campaign Endowment (PACE) at the Foundation, with
the Jewish Community Federation of the Greater East Bay as
the ultimate beneficiary. You make a contribution to the Foundation
in the amount of the premium due, and the Foundation then
pays the premium. You take a tax deduction for the contribution.
When the Foundation receives the proceeds, a named PACE fund
is established to make annual contributions to the Federation's
annual campaign in perpetuity.
At a glance:
- Allows you to leave a legacy tomorrow without major financial
commitments today
- Donation of an existing policy creates a tax deduction
and removes an estate asset
- Contributions in lieu of premiums are tax-deductible
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