Decide how much you would like to give to a favorite cause on an annual basis.
Consult with a qualified life insurance agent to determine what kind of death benefit such a gift - as a premium payment to a life insurance policy - might cost to purchase.
Contact a representative of your favorite cause who directs the endowment programs for that cause, and discuss this proposed strategy. Carefully considering all aspects - both positive and negative - of gifting money in this manner.
Fill out an application for a permanent life insurance policy on your life, naming you as the insured, and the charity or favorite cause as the owner and beneficiary of the policy.
Upon successfully completing the underwriting process, have the insurance agent set up a meeting with you and the charity's representative to go over the issued policy and, if the policy is acceptable to all parties, make a donation to the charity in the amount of the policy's premium payment.
Obtain a complete photocopy of the insurance policy for your records.
Obtain a receipt for your donation documenting your tax-deductible payment to a charitable cause for that tax year.
Continue to make donations for as long as premiums are necessary to keep the policy in force, taking a tax deduction each year for the donation (as far as is allowable under the tax code current at that time).
When you die, the charity or cause will receive an income-tax-free payment by virtue of the policy's death benefit, which is likely to be many times greater than the sum of all of your donations for premium payments.
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