New Trends for the New Year in Charitable Giving
Whether you are a large or small nonprofit organization, you may not realize this but you live on a Big Lake with Big Fish in it! Put away the tin cup, and let’s go fishing … where everybody wins!
Not many people have the ability to write a $1 Million check, but there are hundreds of people inside your own network who own a $1 Million asset and have the ability to give it to charity and may not realize it.
What assets are we talking about? We are talking about life settlements and the secondary market for life insurance policies. We are not talking about the scams of the 1980s. Take it from the founder of the industry, Life Partners Inc. -- there is a better way! A former Harvard Professor described it as finding money in an old suit pocket – money he didn’t even know he had. Your faithful donors will feel the same.
Many people in their 70s and 80s paying premiums on Universal Life Insurance policies cannot afford to continue. Premiums have skyrocketed and the need for the policy has diminished. What are their options? More than 85% will simply let the policy lapse. Most likely, they are unaware they can sell these policies for four to ten times the cash value in the secondary market, and give these proceeds directly to charity – reaping substantial tax benefits.
Development teams can use this superior option of life settlements to invite their people to give at a new level, providing a real win-win for everyone.
Five Steps to Take for New Streams of Income:
(1) Development Teams: Create your target list of individuals 75 years of age and older. This includes donors and parents of donors, alumni and parents of alumni … you get the idea!
(2) Educate & Ask: Educate your donors using existing websites, newsletters, mailings & seminars -- Know your options – Don’t let a Universal Life Insurance policy lapse! Ask donors to consider selling their policy and giving the proceeds to charity. Life Partners Inc. has a variety of materials and ideas to help organizations get this message out effectively.
(3) Research: Take a look at how other institutions are asking for life insurance policies through their websites (Southern Methodist University, Baylor Health Care Systems, American Heart Association). Take a look at other life settlement providers to see how they operate.
(4) Receive Policies: As individuals come forward with Universal Life Insurance policies, Life Partners Inc. is willing, free of charge, to help determine the best course of action for you: (a) hold and pay premiums, (b) cash it in, or (c) sell it in the secondary market. As a life settlement provider, Life Partners Inc. manages the entire life settlement transaction process between the institution and the policy owner.
(5) Contact Life Partners Inc: We would like to get to know you, help you develop an effective plan, and prepare for the incoming policies. We invite you to explore this powerful new trend in generating streams of income for your organization.
The preceding is a guest post by Dr. Sharon Pins, an Adjunct Professor at the University of Dallas, with a PhD in Management of Nonprofit Organizations. She is also the Director of Institutional Investments for Life Partners Inc., and the director of the policy purchasing campaign for strategic development of nonprofit organizations. Please visit us at www.lifepartnersinc.com, or contact Sharon directly at 254-424-8336 or firstname.lastname@example.org to learn more.