Using a Beneficiary Designation to Make a Gift to Charity
Rich Johnson, a 2005 alumni initiate of the University of Richmond Circle, is an emeritus trustee of Omicron Delta Kappa. With a firm belief in leadership, Rich, and his wife Joyce, wanted to make a significant gift to the Society and decided the best way to do that was in designating a life insurance policy to benefit the organization.
Rich: "Joyce and I are passionate about Omicron Delta Kappa's mission. In addition to giving time by serving on the Board of Trustees, Making a meaningful gift to O∆K's comprehensive campaign was important to both of us, and we decided to provide both a current use cash gift as well as a planned gift.
We had originally thought about leaving our life insurance policies to our children and other assets to charity. My attorney suggested a different strategy and told me that a life insurance policy is a great gift to leave to charity. He explained that if our kids inherited the policy, our estate would pay estate taxes. But, by giving the insurance policy to charity and other assets to our kids, the kids will still receive a nice inheritance, and the proceeds from the life insurance policy will not be part of our estate and therefore not be subject to taxation.
Making a gift of life insurance was easy! I contacted our insurance agent, who emailed me a beneficiary designation form. We completed the form, named Omicron Delta Kappa as the primary beneficiary of the policy, and mailed it back. I called Omicron Delta Kappa to tell them about our gift, and they were very touched."
The Johnson's blended gift supports the renovation, maintenance, and preservation of the historic Lexington, Virginia, train station that serves as O∆K's home. In recognition of their support, the facility is being renamed the Joyce E. and Richard S. Johnson Center for Leadership and Omicron Delta Kappa Society and Educational Foundation, Inc. National Headquarters.
Is a beneficiary designation gift right for you?
If you own life insurance policies and would like to make a charitable gift, your family and your estate might benefit if you update your beneficiary designation form naming our organization as a beneficiary. Beneficiary designation gifts may help your heirs avoid paying income tax on certain inherited assets and may help your estate avoid estate taxes.
If you have questions about making a beneficiary designation gift, please contact us. We would be happy to work with you and answer any questions that you have.
*Please note: Since the benefits of each gift may be different, you should seek the advice of your legal, tax, or financial advisor.