By naming United Way as owner and beneficiary on your life insurance policy or a registered plan such as a RRSP or RRIF, you ensure that any proceeds go directly to United Way.
Act today for tomorrow
Donating a policy now can take two forms:
- You can donate an entire policy (a paid-up policy or one that requires ongoing premiums to maintain), which will generate a charitable receipt based on the cash surrender value of the policy, along with any accumulated dividends. Annual premium payments will also generate a charitable receipt for you.
- You can purchase a new policy on behalf of United Way, which entitles you to a charitable receipt for any premiums paid.
Example: Michael purchases a new $125,000 policy, naming United Way as owner and beneficiary. He makes 20 annual payments of $1,050 each, receiving a tax receipt for each payment. Assuming a federal/provincial tax credit equal to 50 per cent of the tax receipts, his annual tax savings are $525. His net cost for each premium is only $525, and he makes a future gift of $125,000 for a total net cost of only $10,500.
Why give life insurance?
- Donors often struggle between a desire to fulfill their own philanthropic goals and a need to preserve their estate for their families. A gift of life insurance eliminates this conflict as it does not reduce the value of your estate. Rather the proceeds are paid directly to United Way and are therefore not subject to probate and other estate fees.
- Give an already paid-up policy and receive a donation receipt for the cash value of the policy.
- Give an existing policy on which premiums are still being paid and receive a receipt for the cash value of the policy and subsequent premium payments.
To learn more about United Way Ottawa and the many giving options available to you, please contact us at 613-228-6767 or firstname.lastname@example.org.