A donor can make a substantial gift to OSU at a very low cost by assigning ownership of a life insurance policy to the Foundation. The donor can take an immediate income tax deduction for the value of the policy as of the date of the assignment, and the proceeds of the policy will pass to the Foundation completely free of estate taxes. After assigning a life insurance policy, a donor can contribute an amount equal to the premiums on the policy to the Foundation and deduct this gift as a charitable contribution. For the donor to obtain an income tax deduction for premium contributions, the Foundation must own the policy. It is possible to name the Foundation as a beneficiary, only, but in this case there is no income tax deduction.

EXAMPLE: George Green has acquired several permanent life insurance policies. His wife and children are all provided for in his will and he needs a tax deduction to offset his income for the year. Mr. Green assigns the ownership of one policy to the Foundation and takes the value of the policy (roughly its cash surrender value) as a tax deduction on this year's income tax return.

Every year thereafter Mr. Green makes a contribution to the Foundation in the amount of the premium on the policy and receives a tax deduction. When the policy pays off, the proceeds are used to fund projects at OSU in Mr. Green's name.

Note: The benefit OSU will ultimately receive from your insurance gift depends on the type of policy contributed and the performance of the insurance company over time. To make certain that your life insurance gift will accomplish your objectives, you should consult with both an insurance professional and a representative of the Foundation before selecting a policy.