Life insurance proceeds can help support a charity’s ongoing activities, advance its capital-intensive projects and create a legacy for you and your family. Life insurance gifts allow you to make a relatively large donation on death in comparison to the insurance costs, and you’ll benefit from tax credits/deductions available to donors.
You can donate the proceeds of the insurance policy to a charity (or charities) or you can pay the premiums on a life insurance policy owned by the charity. The main trade-offs of these options is the immediacy of the tax benefit vs. the amount of control you retain.
