Benefits to the Foundation
Instead of directly donating funds to a charitable cause, the foundation invests those funds in a Donor-Advised Fund, which then lends the funds to a Supporter / Donor of the foundation.
- This investment remains as an asset and continues to be listed on the foundation’s balance sheet
- Interest is earned and accrues for the life of the investment and creates a long-term financial benefit to the foundation
- Invested funds & interest will be repaid to the foundation at the death of the Donor, covered by a collateral assignment through a life insurance policy, listing the DAV as the beneficiary of the invested funds balance
Benefits to the Donor
Donor will then donate the funds from the loan as a charitable gift to a charity chosen by the foundation.
- Will receive a substantial tax deduction and resultant reduction in taxes owed
- Funds that would have been paid in taxes are instead used by Donor to fund the premiums of a Structured Product life insurance policy
- Attractively, this provides the donor a high-performance life insurance policy potentially at a zero net out-of-pocket cost
- This Wealth Momentum™ policy has the potential for the growth of substantial long-term benefits for the Donor and their families / beneficiaries