Major
- Major deductions
- Major contributions
- Major impact
NATIONAL NONPROFIT
ASSISTING PHILANTHROPIC
ORGANIZATIONS
WHAT POLICIES QUALIFY
Both term & permanent policies can qualify for this solution. Even though term policies do not have any cash value, there may be significant appreciated value to be found through our major gift program.
WHO QUALIFIES
Typically, the insured on the policy must be over the age of 65 and have some health conditions that began after the policy was originally issued. While not everyone qualifies, our process will find out.
WHAT IS THE BENEFIT
Life insurance policies that qualify receive on average 8X the cash surrender value or 20% of the policy face amount. For example, a $1,000,000 term life policy could hold $200,000 of value. Each policy is unique and the Fair Market Value (FMV) can be significantly higher or lower.
WHAT IS FAIR MARKET VALUE
Fair Market Value (FMV) is how much the open market would offer for an asset. In the case of life insurance there are many mutual funds, pension plans and banks looking to purchase life insurance policies as an investment. The highest FMV is determined through a competitive process.
*Capital Gains Tax can range from 18.8% to 37.1%, comprising Federal tax (15% or 20% + 3.8% NII tax) and State tax (41 states tax gains at 0% to 13.3%).
**Disclaimer: we are not tax professionals, information is educational only, always seek professional tax professional advice.
HOW IT WORKS
1.
Evaluation
2.
Donation
3.
Asset Sale
4.
Grant
Frequently Asked Questions
The life insurance major gift solution is a form of charitable giving that allows individuals to donate their life insurance policy as an asset to a charity of their choice. The charity then sells the policy as an asset to receive an immediate donation and eliminate future premium obligations for both donor and charity.
With this innovative solution, you can make an immediate impact by providing a substantial donation to your chosen charity. Enjoy significant tax advantages as a donor while potentially securing funds for yourself. Say goodbye to future premium obligations and embrace the fulfillment of supporting important charitable causes.
Typically, individuals over the age of 65 with a policy benefit over $100,000 are eligible for the life insurance major gift solution. However, eligibility varies depending on the life insurance company and the insured’s health.
The life insurance major gift solution differs from traditional life insurance planned gifts in that the policy is sold as an asset instead of paying premiums until obtaining the death benefit. This provides the non-profit with an often significant and immediate source of funds, and the donor does not make any further premium payments. The life insurance major gift solution also provides tax benefits for the donor that are not available with traditional life insurance planned gifts.
The Doro Foundation simplifies the process of donating a life insurance policy as a major gift by managing the entire process from start to finish. The foundation eliminates the need for charities and charitable gift planning professionals to deal with the complexities of the process, and provides a comprehensive and expert evalulation for individuals who wish to donate their life insurance policies to charity.
Embark on a transformative journey of donating your life insurance policy as a major gift. It all starts with a comprehensive assessment of the policy’s fair market value, providing you with the necessary information to make an educated decision. You have the flexibility to retain, donate in full, or partially donate the policy, tailoring the gift to your philanthropic goals. As you recommend a deserving non-profit organization to receive the proceeds, rest assured that a meticulous process of due diligence and approval ensures the funds reach the intended charity. Make a lasting impact through the life insurance major gift solution.
Individuals should consider the life insurance major gift solution because it offers a unique and effective way to make a difference and support causes they are passionate about. The solution provides immediate and flexible benefits, including immediate donation to charity, potential tax advantages, income for the donor, and eliminates further premium obligations. Additionally, the life insurance major gift solution is a valuable and often overlooked form of charitable giving that can make a significant difference in supporting a favorite cause.