Achieving better results for the donor and the charity

Situation:

A board member of a museum wanted to maximize a series of five annual tax-deductible donations he was planning to make to the organization.

 

Action Steps:

Grant, Hinkle & Jacobs presented the board member with a charitable giving option that provided the museum with flexibility to access to some of his donated funds for emergency purposes and receive the remainder as a substantial “legacy gift” at his passing.

This was accomplished by invested his annual gifts into a high cash value life insurance policy on his life with no surrender charges, paid up to his age 100. If the organization needs his gifts to meet a current obligation, they can take a loan or withdrawal from the policy cash value. If the organization can wait, it will receive a large death benefit at his eventual passing.

In addition, he preserved the ability to deduct the charitable contributions from his taxable income and is enjoying the prestige of being treated as a substantial legacy donor.

 

Results:

The board member and the museum were ecstatic with the economics and the flexibility of the arrangement. They are actively approaching other passionate board members and donors who may be interested in following this example.