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Not only can insurance be used to protect and provide for loved ones after death, it can be used for a charitable gift to Oklahoma State University. Choosing to provide the Oklahoma State University Foundation (OSUF) with funds from the death benefit of a life insurance policy provides a unique way to support OSU. Please be aware: The OSU Board of Regents directs all private support for the University through the Oklahoma State University Foundation, so all life insurance beneficiary/ownership designations should name the “ Oklahoma State University Foundation” as recipient.
Advantages of life insurance include a guaranteed gift amount, a gift not subject to probate or public record, and a gift that does not come out of the donor’s assets. Using this vehicle, a major gift to OSU can be made from a relatively small outlay of cash each year. 
There are several ways that donors to OSU can use life insurance as a planned gift. The first way is to assign a life insurance policy to OSUF as the owner and beneficiary. This method of giving provides the donor with several benefits, including a one-time income tax deduction at the time of gift and the knowledge that there is a fixed amount that will be provided to OSUF upon death to benefit the OSU college or area of the donor’s choice. Any additional gifts made to pay future premiums are also tax deductible, and the donor’s taxable estate will not include the policy. The insurance proceeds avoid creditor claims, will contests and public scrutiny of open court records.
A donor can also name OSUF as a beneficiary or co-beneficiary of a life insurance policy without assigning ownership. A donor who chooses to do this will receive some of the same benefits as a donor who has assigned a policy. However, there is no current income tax deduction, because the gift is not irrevocable as in an assignment of ownership.
A donor can use either a paid-up life insurance policy that has outlived its purpose or a new policy purchased specifically for OSUF as a charitable gift. If the policy is paid-up, the charitable income tax deduction, if applicable, is equivalent to the replacement value, or cost to purchase an identical policy. If the policy is partially paid-up, the one-time income tax deduction is equal to the amount of the daily current value of the policy and is slightly more than the cash surrender value. Additional deductions can be taken for future premium payments. When assigning a partially paid or recently purchased insurance policy to OSUF, premiums should be paid directly to OSUF, and OSUF will then pay the insurer. This avoids potential late or missed payments and the donor can potentially have a higher current deduction for “gifts directly to the charity” rather than for “gifts for use of a charity.”
The donor may designate how and for what purpose the proceeds received from a life insurance policy shall be used by Oklahoma State University after the donor’s death. The donor may designate that the death benefit be used by OSUF to benefit a particular program or college at OSU. For example, insurance proceeds could be used to establish an endowed scholarship fund to be benefit OSU students in perpetuity. Members of the OSUF Planned Giving Department are on hand to help you accomplish your objectives.
If you have any questions about any charitable giving information or opportunities to support a specific college or program, please contact the Office of Planned Giving at (800) 622-4678 or plannedgiving@osugiving.com.
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