a gift of life insurance
Would you like to be a $100,000 or even a million dollar contributor to the Boys & Girls Clubs of Greater Scottsdale Foundation? Life insurance allows you to make a substantial gift at a very affordable cost. You can purchase a new policy on your life naming the Boys & Girls Clubs as the beneficiary of the policy. Annual premiums are fully deductible as a charitable gift. Some policies can even be structured so that only a limited number of premiums have to be paid to provide a future death benefit to the Club. Through life insurance you can have a major impact on the future of thousands of kids.
There are many other ways in which a gift of life insurance can benefit you as well as the Boys & Girls Clubs. A gift of life insurance could provide you with some exceptional tax benefits. Here are just a few examples:
a gift of an unneeded policy
Let’s assume that your family is grown and no longer needs a $50,000 policy you purchased many years ago. In this example lets assume that the cash surrender value and the cost basis of your policy are both $20,000 and that your premiums cost $500 annually. If you contribute this policy to the Boys & Girls Clubs of Greater Scottsdale Foundation and continue paying the premiums, you will be entitled to an income tax charitable deduction of about $20,000 reducing your taxes by $5,600 if you are in a 28% bracket. In addition, each year that you continue to pay the $500 premium you will be entitled to an annual $500.00 charitable contribution deduction saving an additional $140 in income taxes. Upon your death, the full death benefit of $50,000.00 will be used by the BGCGS Foundation in support of the many important youth programs the Club offers its children.
wealth replacement plans
Contributed assets in your estate can be replaced through the purchase of life insurance partially funded through the tax savings you receive through your estate gift to the Boys & Girls Clubs of Greater Scottsdale Foundation. The life insurance is made payable to family members and replaces the donated assets to the Club. If you employ an irrevocable life insurance trust, your family can receive the insurance proceeds usually free of gift or estate taxes.
revocable beneficiary designation
You can also keep lifetime ownership rights in a policy (the right to borrow against or cash in a life insurance policy, for example) and still name the Boys & Girls Clubs as the beneficiary of part or all of the proceeds. Your estate will be entitled to a charitable deduction for the amount passing to the Club. If you prefer, you can even name the Boys & Girls Club as a contingent beneficiary of your policy. In this case the Club would receive the proceeds only if your primary beneficiary died before you, or if your primary beneficiary elected to disclaim the benefit and pass the proceeds to the Boys & Girls Clubs of Greater Scottsdale Foundation.