How to Gift Life Insurance to a Charity Trust?

Many worthy organizations like hospitals, schools, support groups, churches, foundations, and clubs rely in large part on charity. They need donations from communities and people to operate and support their causes.

According to the National Philanthropic Trust, approx  $2,974 is contributed by the average American household each year.

A report says more than $410 billion was donated to charities in 2017 in the USA.

But did you ever think rather than donate what you can offer to a charity trust? Life insurance for children is a fantastic gift to a charity. You can win hearts by giving life insurance to charity trust.

Major reasons why people donate?

  • The preservation of someone’s values, ideals, and beliefs.
  • Empathy for those in poverty
  • Enduring family members are not possible beneficiaries
  • Securing community acceptance
  • Well-informed self-interest
  • Advantages in income tax
  • Decreasing the size of an inheritance

What can you do for providing life insurance charity trust?

Charity as your Beneficiary

If you already have life insurance and you want to gift life insurance to a charity then you can give it to them. It is the easiest way to manage to gift life insurance to children.

Having your own life insurance, you can name the charitable organization as another beneficiary. Also, you can purchase a new life insurance policy for your favorite trust.

And if you name them as your beneficiary, then that organization will receive the amount of your policy after you pass away.

And the best part is you would not receive an income tax deduction, taxable estate will be decreased.

Donation of Life insurance policy

If you gift a policy, the charitable organization would be the beneficiary and owner, and you the registered, you will be paying the premiums.

And in this process, you will receive heavy tax benefits. But, this choice is not as simple as making a charity a beneficiary.

There are few things to remember:

  • All states don’t allow for purchasing insurance policy for charity.
  • Prove relation with the charity.
  • Checking your bank balance and source of income.


Many of you are thinking about the right platform to buy life insurance for a church or charitable trust. Working with a trusted adviser Faith Based Cause Initiative will guide you through the journey. You will get to know the entire process of purchasing a policy.