GIVE MORE, OWE LESS? THE BENEFITS of Charitable Giving
By Brittany Heater
Philanthropy is more than just making a gift— it can also be part of a savvy financial strategy.
When we think about smart money moves, we often focus on cutting back, but what if the smartest way to save more was by giving more?
One of the most powerful saving tools may be one you haven’ t even considered. By being a strategic philanthropist, you can maximize your impact, drive positive change, and potentially reduce your tax burden. Whether you’ re planning your estate or exploring how to utilize your digital assets, gifts of life insurance and cryptocurrency are charitable hidden gems that offer unique and often overlooked ways to save significantly on taxes while continuing to impact the world long after you’ re gone.
DONATING AN EXISTING LIFE INSURANCE POLICY OR PURCHASING A NEW ONE
This approach can provide the most benefits to both you and your cause. You can either transfer ownership of an existing policy to the charity or take out a new policy naming the charity as both owner and beneficiary.
If the charity owns the policy, your premium payments may be tax-deductible and because there are no charitable contribution limits regarding estate tax, no matter the size of the policy, you benefit from every dollar you invest. This method can turn the premiums you pay into a future gift.
NAMING A CHARITY AS A LIFE INSURANCE BENEFICIARY
Selecting a charity as the beneficiary of your life insurance policy is one of the easiest ways to give. It’ s simple, doesn’ t affect your current cash flow, and allows you to retain control over the policy during your lifetime.
This is a great choice for donors who prioritize financial flexibility, haven’ t yet finalized their estate plans, or don’ t have the immediate means to make a significant donation to a cause they love.
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