DONATION THROUGH LIFE INSURANCE POLICY

Life insurance is more than simply a form of protection; it is also an investment vehicle that offers high-yield, guaranteed returns for the MMFA. The sum paid out following your death will exceed the amount you invested in premiums throughout your lifetime.

Our experienced team is here to guide you in your philanthropic planning. Please feel free to reach out to us:

Dalia Younsi
Director – Major Gifts and Planned Giving
dyounsi@mbamtl.org | 438-435-5776

Nolwenn Bourdaire
Senior Advisor – Philanthropic Development
nbourdaire@mbamtl.org | 514-213-9466

Why make a donation to the MMFA Foundation through your life insurance policy?

Advantages:

Small initial cost for big philanthropic impact
Immediate or future donation (depending on the formula you choose)
Tax receipt issued immediately (if the policy is transferred to the Museum) or to the estate (if the MMFA is the beneficiary)
Does not affect the assets available for your heirs since the lump-sum death benefit comes from the policy

There are three ways of donating to the Museum through your life insurance policy:

1
Name the MMFA Foundation as your life insurance policy beneficiary
Upon your death, a tax receipt equal to the total death benefit will be issued to your estate.
2
Transfer ownership of your existing life insurance policy to the MMFA Foundation
You will receive a tax receipt for the market value of your life insurance. If you have not finished paying the policy premiums, you will also receive a tax receipt for each premium you subsequently pay.
3
Transfer ownership of a new life insurance policy to the MMFA Foundation
With every premium payment, you will get a tax receipt equal to the amount of the premium and, upon your death, the MMFA Foundation will receive the capital.

Scenario

Every year, Mr. Dubois loves to take his grandchildren to the Museum. He has always had a strong desire to support the Museum and its activities, but he doesn’t want to negatively impact his current cash flow or deprive his children.

He decides to opt to make a donation through his life insurance policy, naming the MMFA Foundation as the beneficiary—an impactful solution that also offers tax benefits.

Selected Option: Naming the MMFA Foundation as the beneficiary of Mr. Dubois’ life insurance policy

Mr. Dubois takes out a new life insurance policy, naming the MMFA Foundation as the beneficiary, while retaining ownership of his policy. That way, he still owns the policy for his lifetime, and can change beneficiary at any time.

Investment during his lifetime: Mr. Dubois pays $2,000 in annual premiums for 15 years, for a total of $30,000 during his lifetime.
Donation to the MMFA Foundation: Upon Mr. Dubois’s death, the MMFA will receive an amount of $200,000, i.e., the amount of the death benefit set out in the terms of his life insurance policy.
Tax benefit for his estate: His estate will receive a tax receipt for $200,000, which will generate a tax credit of approximately $100,000.*

Summary: For a net cost of only $30,000, Mr. Dubois generates tax savings for his estate of $100,000, while making a major donation of $200,000 to the MMFA Foundation. Plus, since he informed the Foundation of his decision, Mr. Dubois will receive the recognition and gratitude he deserves during his lifetime.

* The example is based on a 50% tax rate to simplify the calculation.

Our experienced team is here to guide you in your philanthropic planning. Please feel free to reach out to us:

Dalia Younsi

Director - Major Gifts and Planned Giving

dyounsi@mbamtl.org

514-285-1600, #341

Nolwenn Bourdaire

Director - Major Gifts and Planned Giving (Interim)

nbourdaire@mbamtl.org

514-285-1600, #240

Planning on making a donation to the Museum through your life insurance policy?

We are deeply grateful for your generosity!

The MMFA Foundation would like to personally thank you once your donation is confirmed. Please reach out to us so that we can tell you about our donor recognition program.

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Note:
It is always wise to consult your tax planner or financial specialist to determine the best way to include the MMFA Foundation in your estate planning. These professionals have the know-how and expertise to explain how best to structure your donation and what tax benefits apply to your specific situation.