A life insurance policy that is no longer necessary or no longer serves its original purpose can be easily repurposed to support the work of the Foundation.
Deferred Giving Program
AKF USA’s Deferred Giving Program was established in 1993 to offer dedicated donors and their families a way to leave a legacy gift. The program operates through a life insurance policy taken out by the donor. A relatively small annual tax-deductible contribution (the premium) for a limited period (generally seven to ten years) keeps the policy in force, and the ultimate gift amount and impact is much greater than the total contributed.
Insurance premiums paid now allow the contributions to grow over a donor’s lifetime and will be available to AKF USA in the future, providing long-term sustainability for its current programs and for AKF USA to plan for the future.
Many families within the United States have participated in the Deferred Giving Program as a way to support meaningful change, evidenced by the fact that the portfolio has more than doubled in the past five years. We invite you to join many other families by participating in our Deferred Giving Program.
If you are interested in participating in our Deferred Giving Program, please contact us at 202.293.2537 or email [email protected].
Give an outright gift of a new policy
Do you want to make a gift to support Aga Khan Foundation USA without using current assets?
You can purchase a new policy on your life and irrevocably name the Aga Khan Foundation USA as the owner and beneficiary. Once the policy has been gifted to the Foundation, you will support the policy until maturity by making the premium contributions to the Foundation who in turn will pay the insurance company. Contributions made to the Foundation are generally tax-deductible.
Ways to Give A Gift of Life Insurance
Give an outright gift of an existing policy
Do you have an existing life insurance policy that you think no longer is necessary to serve its original purpose?
You can designate the Foundation as the beneficiary and transfer ownership of an existing policy to the Aga Khan Foundation USA. Upon a successful transfer of ownership, you will qualify for a charitable tax deduction. If the policy has not fully matured at the time of transfer, you will continue to support the policy through tax-deductible contributions to the Foundation until the death benefit is secured.
Name AKF USA as the beneficiary of the policy
If you wish to retain ownership of your life insurance policy but still wish to support our work, you can simply name the Aga Khan Foundation as the sole or even partial beneficiary of the policy by updating your beneficiary designation with your insurance company. The designation is revocable as the donor retains the right to change the beneficiary at any time. After making AKF USA a beneficiary, you must specify a percentage or a specific amount of the death benefit that will be received by the Foundation after your passing.
What are the benefits of leaving a gift of Life Insurance to AKF USA?
- Upon gifting a new or existing policy to the Foundation, you are eligible to receive an immediate charitable income tax deduction, reducing your taxable estate
- Premiums are deductible—making the cost of the gift affordable during your lifetime
- If you choose to participate in the Deferred Giving program, you will have minimal administrative obligations
- Insurance policies are separate from your estate, so the amount of assets provided to your family are not reduced by gifting a policy to AKF
- Once the policy fully matures, proceeds are received by AKF USA, free of federal income and estate taxes, probate, and administrative costs without any delay, fees, or transfer costs
Inform AKF USA
The Foundation requests that donors who are interested in participating in the Deferred Giving Program or who want to designate AKF USA as a beneficiary of their policy to notify the Foundation of their intentions. AKF USA does not encourage any gifts that may result in financial hardship or disharmony in a family or among heirs. To learn more, read the Deferred Giving Program Guidelines.
For more information on making a bequest or informing AKF USA of your intention, please contact your local AKF USA volunteer or call 202.293.2537, email [email protected], or mail to:
Planned and Legacy Giving
Aga Khan Foundation USA
1825 K Street, NW Suite 901
Washington, DC 20006
The content on our Planned and Legacy Giving pages is for informational purposes only. We recommend that you consult with your financial and legal advisors for additional information and guidance.