Insurance as a current gift: existing insurance policies that were purchased many years ago may have accumulated a cash value. The insurance may be given as a current gift to the Boys & Girls Clubs and the cash value would be made available to be added to the endowment fund or to fund current efforts.

According to federal and state authorities, after insurance is given as a gift, the choice of utilizing the cash value or the death benefit is to be made by the charity. The Boys & Girls Clubs complies with these regulations and seeks the wise counsel of the donor in finding the best means of maximizing the value of all insurance gifts.

The IRS regulates the tax deduction for an insurance gift. The deduction value is not based on the death benefit value or the cash value. However, the deduction often is of a value very close to that of the cash value. Consultation with your tax advisor is recommended before making an insurance gift. Insurance gifts will be accepted if they are paid up policies. Insurance policies with substantial cash value with minor premium payments will be examined for acceptance on an individual basis.

Insurance as a future gift: new or current insurance policies may list the Boys & Girls Clubs as the beneficiary or as one of the beneficiaries. The donor may purchase a new policy or name the Boys & Girls Clubs as the beneficiary on an existing policy. If the donor owns and controls the policy, there is not a tax deduction permitted by the IRS. If the ownership of the policy is transferred to the Boys & Girls Clubs and the donor makes a gift each year with the intent of funding insurance as a gift, then there is a level of deductibility that is permitted. Consulting with your tax advisor before making an insurance gift is recommended.

To make a bequest of insurance, or to request a brochure please contact:
Jeff Miller
jmiller@sdyouth.org
760-746-3315