If you're looking for a good way to make a charitable donation to New York Medical College, but don't have large estate assets, consider using an insurance policy. Your need for life insurance will most likely decline with age, increasing its usefulness as a charitable gift.
There are a variety of ways to use your life insurance to make a substantial gift to New York Medical College. Depending on the type of policy you donate, you may receive an upfront income tax deduction, and any future premium payments may also be tax-deductible.
You can donate an existing life insurance policy to us or simply name us as the beneficiary. For the gift of a paid-up policy, you will receive an income tax deduction equal to the lesser of the cost basis of the policy or the replacement cost. To qualify for the federal charitable deduction on a gift of an existing policy, you must name us as owner and beneficiary.
You also can take out a new policy with us as owner and beneficiary. Your continuing premium payments, typically gifted directly to New York Medical College, are income tax deductible.
A third alternative is to donate an existing policy and keep up the premiums. If you should lapse on the payments, New York Medical College can either receive the current surrender value of the policy; buy a smaller, yet paid-up policy with the policy's cash value; or possibly even continue the premium payments for the life of the insured. Group term life insurance or employer group coverage above $50,000 also make suitable gifts to charity.
Gifts of life insurance are usually deductible up to 50 percent of your adjusted gross income. If necessary, you may carry over the deduction for an additional five years.
For more information, please contact the Office of Development & Alumni Relations at firstname.lastname@example.org or call (914) 594-4550.
Note: This page is intended to provide you with general information, not legal or tax advice about specific situations or problems. We encourage you to consult a lawyer or accountant on all legal or tax matters.