The Alumnae Association for Douglass College | Douglass Difference

Gifts of Life Insurance


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You’re considering a gift made after your death > You prefer to make a gift from income instead of principal

Your surplus, paid-up life insurance policies can be used to fund a gift to the AADC. If you acquired several life insurance policies when your family was younger, with the children now grown the coverage may be more than you need. If you donate a policy, your charitable deduction will be the lesser of the fair market value of the policy – we can guide you in determining this – or your cost basis, which is the total of your net premium payments.

Alternately, your annual income may be healthy, but your ongoing family obligations will make it difficult for you to accumulate capital. If you take out a new life insurance policy as a gift, you can deliver a large benefit to the Associate Alumnae of Douglass College from income rather than capital. You will make deductible annual gifts to the Associate Alumnae of Douglass College in the amount of the premium payments; we will, in turn, pay the premiums to the insurer.

F.Y.I.:

  • It is important that you also name the Associate Alumnae of Douglass College as the irrevocable owner of the policy and not just the beneficiary. The IRS does not allow deductions for your premium payments if you retain ownership of the policy.
  • If you have borrowed against a life insurance policy, a subsequent gift of the policy will create taxable income for you – the difference between the loan balance and the fair market value of the policy.

You can also transfer ownership of an existing policy which is not yet paid up. Your charitable deduction will be determined in the same way as if you had given us a paid-up policy. We reserve the right to surrender your policy or to keep it in force; you can make deductible gifts to offset our premium payments if we elect to continue the policy.


Email us, complete the personal illustration form, or call us at 732-246-1600 so that we can assist you through the process.


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