Charitable Life Insurance - Donating an existing life insurance policy
If you decide that you would like to donate an existing life insurance policy with a cash surrender value, then you would be entitled to a receipt for income tax purposes for the net cash surrender value of the policy. You are entitled to deduct a portion of the charitable donation against income in any given year. You may also be able to carry forward any unused portion of the charitable donation for up to 5 years. Check with your accountant or financial advisor for advice about how much of a deduction you would be entitled to. You should be sure to understand what this type of gift means to you financially before you proceed. For example, there may be little tax advantage to you if you go this route because the transfer of the policy would result in a disposition of the policy, which means that there would be taxable income of the cash surrender value, less the adjusted cost base to you. What this means is that in the end result, there may not be much of a charitable tax credit available. There are special tax rules and other considerations with the gift of a life insurance policy. Please contact the Foundation office as soon as possible if this is the type of gift that may be made so that the Foundation can provide guidance in the process.

The Foundation will need a copy of your insurance policy. As well, The Foundation will need you to complete direction documents, to comply with income tax regulations and to ensure that your specific wishes are recorded.

For a donation with a death benefit of $10,000 or more, you are entitled to become a member of the Heritage Club.

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