Life insurance can be an excellent way to make a charitable gift. The best method depends on your own personal circumstances. You may wish to give an existing policy; or you may want to take out a new policy. Another option would be to retain ownership of a policy and name WSPA as a beneficiary.

EXISTING POLICIES

Why would I want to give an existing policy to WSPA to help animals?
After reviewing your financial circumstances, you might find that you have a policy that you no longer need. Perhaps you bought a policy years ago to cover a home mortgage that has since been paid off. Perhaps you left a business in which you were a key person and took with you a policy originally purchased to cover your business needs. These policies could make wonderful gifts to WSPA.

How do I donate an existing insurance policy to WSPA?
You simply transfer ownership of the policy to WSPA. Your insurance agent or insurance company can provide you with the necessary forms.

NEW POLICIES

Under what circumstances might I donate a new policy to help the animals?
You may not be entirely happy with your annual gift to help WSPA and feel that you would like to contribute much more. Perhaps you have sufficient income but no sizeable assets with which to make a significantly larger gift. Giving a new life insurance policy may help you achieve that goal. With the first premium payment, the entire death benefit (a much larger gift) goes to WSPA when you die.

How do I make a gift of a new insurance policy?
There are two ways to do this: 1) You could take out the policy yourself and then transfer ownership to WSPA; or 2) WSPA would actually apply for the insurance as the owner/applicant. Once the gift is made in either case, you would continue to make annual tax-deductible contributions to WSPA and WSPA would use these contributions to pay the premiums each year.

NAMING WSPA AS A BENEFICIARY

Can I just name WSPA as a beneficiary of a life insurance policy?
You can retain ownership of the policy and simply name WSPA either as the sole beneficiary or as beneficiary of a percentage of the proceeds. Although you would not receive any income tax benefits since you retain ownership, you would remain in complete control of your policy. People often do this with group life insurance policies or term policies.

BENEFITS OF GIFTS OF LIFE INSURANCE

Are there income tax advantages for giving an existing policy to WSPA?
If the policy is a whole-life policy, you can take an immediate charitable income tax deduction for the amount approximately equal to the cash value net of any loans when you transfer ownership of the policy to WSPA. Term policies do not create any immediate income tax advantages.

In addition, you receive a charitable income tax deduction for any contributions you make to pay premiums.

Are there estate tax advantages to giving life insurance policies?
At your death, the value of the amount passing to WSPA will be excluded from your estate, effectively reducing your estate taxes.

How does WSPA benefit from receiving a gift of life insurance?
WSPA can surrender a policy for its cash value at the time the gift is made and put this amount to work immediately, or wait to collect the proceeds of the policy when the donor passes away. In either case, you have the satisfaction of knowing that you have made a wonderful gift to help the animals.

Can I use life insurance with other forms of charitable giving?
Many people use life insurance to replace the value of other gifts they make to WSPA. For example, if you establish a charitable remainder trust or a charitable gift annuity, you can use some of the immediate tax savings to purchase a life insurance policy and make your children or other heirs the beneficiaries. That way, you gain the advantages of charitable giving without decreasing the amount passing to your family.

If you would like to discuss this gift opportunity further, please contact:

World Society for the Protection of Animals
Lincoln Plaza
89 South Street, Ste. 201
Boston, MA 02111

E-mail: wspa@wspausa.org
Phone: 1-800-883-9772
Fax: 617-737-4404