Oftentimes donors wish to endow their favorite charity and transfer ownership of their life insurance. Faced with escalating premiums or an insured living longer than projected, policy holders often have no choice but to terminate the policy to relieve the pressure of ongoing and escalating payment obligations and diminished benefits.
Charitable organizations are taking a different view of life insurance as a source of funds given a reliable and robust secondary marketplace. A proven technique known as life settlement identifies and delivers the fair market value of a life insurance policy held by donors (or previously gifted) to a charity.
Most people know what their equities, real estate, artwork and jewelry are worth. These same individuals may not realize life insurance is an asset (!) and, as such, has property rights.
Contributed Line can work on your organization’s behalf to facilitate such transactions among donors who have expressed an interest in naming your organization in their life settlement(s).
Additionally, Contributed Line can work with you to co-write the web content and marketing messaging that communicates this opportunity to your constituents.
While this sort of gift is rare, when they do materialize, they tend to have a profound impact on an organization’s future and long-term sustainability.
Contributed Line can help you create the conditions for such a gift to be made if a member of your constituency is in a position to make a gift of this nature.
Here is how Contributed Line can help your organization create the frameworks in which to attract and receive life settlement gifts:
1.) Understand the opportunity
>> The term “life settlement” is insurance jargon and not necessarily resonant with you (the nonprofit leader) or your loyal donors. We can help you understand this opportunity with a succinct well-researched presentation that you may cross reference with your friends in the insurance business.
>> We have a litany of success stories that our colleagues have experienced over the years, but we want to make sure you understand this unique opportunity first.
2.) Market the opportunity on your website
>> Once you understand this opportunity, you will need to share this opportunity with your constituents; you need to let the world know that your organization is willing and able to accept a gift of this nature.
>> Contributed Line can help you develop the text, imagery and web navigation structure to convey your ability to receive such generosity if they choose to embark on the process or making a gift of this nature.
3.) Share the opportunity with your constituents
>> The content on the website is merely the platform from which you will present this unique opportunities to your donors, board members, volunteers, and friends. How will you present these opportunities at meetings? What literature will you develop to excite and entice — rather than bore and confuse — potential donors?
>> Contributed Line can help you develop the language and literature to share this information with the individuals that have indicated they might be open to this opportunity.
4.) Develop the protocol for how to accept these gifts
>> In order to let the world know (broadly as well as individually) that your organization is willing and able to accept a life settlement gift, you should have some structures in place to ensure that your acceptance of such a gift will be as efficient and seamless as possible on your end.
>> Who is the staff member or board member willing to spend time on the phone and email with the donor and their insurance representatives to discuss whether the gift will be made through check, direct deposit, or some other vehicle?
>> Contributed Line can provide you with a script and timeline for a best-case scenario for how to accept such gifts, anticipating what account information and numbers the donor/donor representatives will need (and what they will not need) in order to execute the transfer of funds. We can also identify potential pitfalls, delays, and barriers that occasionally arise to help you anticipate potential issues and manage the process proactively.
>> Contributed Line can also provide on-the-spot client assistance in troubleshooting or decision-making when accepting such gifts. We can also help review documents to ensure processing fees are in line with industry standards.
>> Contributed Line can help you and your board members draft policy for how the gift will be used when accepted.
5.) Recognize and celebrate life settlement gifts
>> When such a gift is received, how can you express your gratitude to the donor? Life settlement gifts tend to be larger than the average gift your organization receives and reflect a deep level of generosity. Are such gifts befitting of naming opportunities, board-directed restrictions, or other adaptations of organiztional policy?
>> A life settlement gift should be celebrated and publicized in accordance with donor wishes and privacy concerns, while also letting the world know that your organization welcomes and values such gifts, but perhaps most importantly, has the ability to accept and acknowledge the gift in a gracious, efficient, and professional matter.
Partnership with Expert Professional
The rarity and complexity of life settlements (historically) has made the pursuit and execution of such gifts appear too cumbersome to identify and facilitate. It does not need to be difficult at all when the right professionals are available to help. Contributed Line works with Marc Ruskin, ChFC, CLU, REBC, RHU, to communicate with individuals who are interested in naming nonprofit organizations as beneficiaries of such transactions. With over 40+ years of experience in financial services with an emphasis on millions of dollars worth of life settlements, Mr. Ruskin has developed the professional expertise to oversee the execution of these unique and often transformative gifts with precise detail and follow through.
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