Abel Covarrubias, in partnership with his family has set up a life insurance policy to benefit the CFSNM upon his passing. This gift will come in the decades after us but the commitment for a life long legacy is important to him. He hopes to teach the importance of giving to his children and this gift truly does so.
Gifting life insurance can be done when there is no longer a need for personal financial wealth and can be either gifted through a paid-up policy or a policy that premiums are still being paid upon. If chosen to keep paying premiums through the foundation you may receive a charitable contribution deduction of up to 50% of your AGI.
Build Your Legacy. Preserve A Community.
Deb Widger, pictured in jean shirt and khaki pants to the left, has had a life insurance policy with the foundation since the 1990s. This has been her and her husband, Chuck’s commitment to the support of a permanent endowment. Each year they donate to cover the premium of their life insurance and the CFSNM holds the policy for future use.
Our 3 Promises
Life insurance is usually given to a family or spouse in in the event of death, but it can also be given to build a legacy within your community. No matter what age, it is a great opportunity to make an impact.
Naming the Community Foundation of Southern New Mexico as the owner and irrevocable beneficiary of your life insurance policy can promise the legacy and permanence that your gift will have within the community while also providing tax benefits throughout your lifetime.
The money from your policy will be used to create a fund in either your name, your family name, or any name chosen. It will then be reinvested into the community to create grants or fund organizations. The money will keep sustaining the community for generations to come.
The Bequest of Life Insurance Example:
Margaret holds a life insurance policy valued at $500,000. Each year she makes a charitable gift to a local nonprofit that helps shelter animals. Margaret is worried that after her passing the nonprofit will no longer maintain itself without her yearly gifts and end up shutting down, leaving shelter animals helpless. Margaret transfers ownership of the life insurance policy to the Community Foundation of Southern New Mexico. Margaret and the CFSNM create an endowed designated fund focused on sustaining her beloved charity. Margaret continues to make premium payments on her life insurance policy through the CFSNM. Margaret then claims an income tax deduction on her payments for the rest of her lifetime. After Margaret’s passing the policy pays the CFSNM as the designated beneficiary. The CFSNM places the proceeds of Margaret’s payout into her fund which is then reinvested into the CFSNM. Margaret’s donor advised fund grows with earnings. This fund is then able to provide yearly grants to the nonprofit that helps the animals she loved so much.