FundSvcs Community

 View Only
Expand all | Collapse all

Policy on life insurance minimums

  • 1.  Policy on life insurance minimums

    Posted 19 days ago
    Our Gift Acceptance Policy currently states that we will accept gifts of life insurance where we are the owner and irrevocable beneficiary. However, we don't state any minimum dollar amounts or ages.  Do any of you have stated minimums in your GAP for gifts of life insurance?  With ongoing annual reporting and premium payment management, there's a significant amount of ongoing work with these kinds of gifts, and we're wondering if it's a best practice to include minimum gift amounts.

    Gwen Donev
    Director of Advancement Services
    Gustavus Adolphus College

  • 2.  RE: Policy on life insurance minimums

    Posted 19 days ago
    I do recommend establishing minimums, Gwen.  And I also recommend the Gift Acceptance Committee review all proposed gifts even when the minimums are met.  To your point, donations of these policies, when they are not paid in full, create a significant burden and overhead to the institution.

    In the 4th edition of the CASE Standards, I included suggested minimums.  They are found on page 70.  However, the 4th edition is over ten years old, and I'd suggest that the indicated face value of $100,000 then might be more like $250,000 today.

    Anyway, those suggested minimums were:
    • $100,000 minimum death-benefit value
    • Fully paid policy within five years (privately I urge annual premium payments)
    • Charitable contributions from the donor to the institution rather than the insurance company

    John H. Taylor
    John H. Taylor Consulting, LLC
    2604 Sevier St.
    Durham, NC   27705
    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987

  • 3.  RE: Policy on life insurance minimums

    Posted 19 days ago
    Great, thank you John!