Gifts of Life Insurance
You can gift unneeded life insurance to benefit Cleveland State University. There are few simple ways to do this:
- Naming CSU as a beneficiary of a life insurance policy provides you with a charitable income tax deduction for your estate. This option is also revocable if your life circumstances change.
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Transfer an existing policy or purchase a new policy and transfer ownership of that policy to CSU. If you
gift a paid-up policy to CSU, you would receive a charitable tax deduction for the cash value of the policy.
Otherwise, donors generally receive a deduction equal to the amount of premiums paid, known as basis. If
you've owned the policy for many years, this could result in significant tax savings.
For example, you've owned a $500,000 life insurance policy for 10 years with a $3,000 annual premium. Upon transferring your policy to the CSU Foundation, you may qualify for an immediate tax deduction equal to your basis, in this case $30,000. You and CSU can then decide to end the policy for its cash value.
If you have any questions about a gift of life insurance, please contact us. We would be happy to assist you and answer any questions you might have.
