C3 Financial Partners

The Gift That Keeps On Giving Long After We Can’t | Life Insurance in Philanthropy

Philanthropy, at any level, demonstrates the passion a donor has for a specific cause. But at the donor’s death, those gifts generally end. What if there was a tool that could both optimize gifting and secure ongoing legacy gifts? Watch this brief video to learn more.

Read the video transcription

Winston Churchill said, “We make a living by what we get, but we make a life by what we give.” Many donors are passionate about the nonprofits they support and are always trying to find ways to maximize their gifts. But what happens after their death? Will families share the same enthusiasm for these organizations and continue the support? Fortunately, there is a tool we can utilize to both optimize gifting and secure ongoing gifts. By utilizing life insurance and their philanthropic planning, these loyal donors can leverage their contributions into potentially much larger legacy gifts. And even though the benefits of life insurance may not be realized until many years in the future, it’s a great way to ensure their gifts will continue.

There are several ways to utilize life insurance and philanthropic planning. One option is for a donor to fund a new life insurance policy where the owner and beneficiary is the nonprofit. The second option is to transfer an existing life insurance policy to the nonprofit, the donor may have a policy they no longer need or want. Instead of just letting the policy go, they can transfer ownership to the nonprofit. Many nonprofit organizations may already own life insurance policies. It’s important to have those policies reviewed regularly to ensure they’re still on track.

During a recent policy review for a nonprofit, we noticed the premium hadn’t been paid on one of their policies, and was in danger of terminating. We notified the nonprofit and worked with them to keep the policy in force. A few months later, the donor unexpectedly died. Had there been no review, the policy could have lapsed, the nonprofit would have received no death benefit proceeds. Another reason for timely reviews is that sometimes existing policies may be suitable for alternative solutions that could provide a benefit during the donor’s lifetime. Life insurance can be a valuable philanthropic planning tool when structured and managed properly. The owners are making a significant and long term commitment.

Our team at C3 has the expertise and credentials, such as a chartered advisor and philanthropy to help find optimal solutions for donors’ philanthropic objectives. So on behalf of the entire C3 Financial Partners team, we look forward to collaborating with you.

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Senior Vice President, Lion Street Private Client Group