October 16, 2011 | Read Time: 1 minute
Behind the approach: Many affluent people are still worried about the economy and are looking for ways to avoid big out-of-pocket commitments.
What’s working: United Way Worldwide (No. 1) last year started United Way Life, a campaign to persuade donors to buy a life-insurance policy that would benefit United Way at their death. The campaign likens the gift to an endowment, albeit a far more affordable one than, say, an endowed professorship. The gifts are designed to provide a least $10,000 a year to the organization.
How the gifts play out: Donors make payments to the life-insurance policy over five years. The exact sum depends on their age. For example, a 50-year-old couple would pay about $5,000 annually for five years. Upon their deaths, United Way would receive $250,000 and add the money to its endowment. The sum is enough to generate $10,000 annually for the charity.
Results: United Way has provided more than 75 people with detailed information about how much they would have to provide, and 35 of them have bought the insurance policies. Together those gifts will provide $11-million to the United Way endowment.
Key lessons: Many charities have long offered life-insurance policies, but United Way says in tough economic times, the idea is especially appealing because donors do not need to spend large amounts to make big contributions. What’s more, they may also be eligible for tax deductions on the insurance payments.
| Explore the Philanthropy 400 | |||
Full List  |
Map | More Coverage | |
