Suppose you have a favorite charity (if you don’t, go get one!) and would really like to make a long term and meaningful commitment. It is a great “feel good” to help a worthy cause, it sends a loud “thanks” to all the volunteers you work with, and it sets a great example for children and others who look to you for guidance. How can you make a large commitment now? Buy a permanent insurance policy that the charity owns and is beneficiary of. Each year make a gift to the charity. You’ll get an income tax charitable contribution deduction for the gift. The cash value will build a valuable asset for the charity. You will have made a large gift, which you can pay over time. Key: Don’t reduce your annual gifts to the charity. The insurance policy should be an additional gift, since the charity won’t be getting current dollars it can use from the premium payments.
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