The Nonprofit FAQ

How can life insurance policies be used to make a gift to a nonprofit?

An Irrevocable Life Insurance Trust using an existing policy or a newly purchased policy may be used to accomplish this end. Advice from a tax attorney or a personal tax advisor will probably lead to several other possibilities. The field of planned giving has expanded a lot in recent years. For a general introduction, see the other articles in this Nonprofit FAQ section on the topic (http://www.idealist.org/if/i/en/faqcat/330-11) or the Partnership for Philanthropic Planning at http://www.pppnet.org/. The first paragraph comes from the earliest days of the Nonprofit FAQ, sometime in the 1990s. The second and third paragraphs were added 2/2/05; revised 1/23/10. --PB