Donors can use life insurance to make a gift to The Broward Education Foundation
by naming The Broward Education Foundation as the owner and beneficiary
of a life insurance policy. A donor receives a charitable income tax deduction
based on the lesser of the policy’s fair market value or the net
premiums paid. Donors may also wish to make gifts of paid-up policies,
resulting in a charitable income tax deduction for the policy’s cash
surrender value.
An important use of life insurance is its ability to replace the value of
an asset that has been given to The Broward Education
Foundation. A donor can use the tax savings produced by the
charitable income tax deduction to purchase and pay premiums
on life insurance policies whose proceeds equal the value of
the gifted property. This arrangement can serve to protect
the interests of family members.
