Life Insurance can be a convenient way for you to make a substantial gift to Covenant House New Jersey at a relatively modest annual cost. You may either use a paid-up policy you no longer need or purchase a new policy to make your gift. Here are some examples of charitable gift-giving opportunities using life insurance:

The easiest way to make a gift of life insurance is for you to name Covenant House New Jersey as the beneficiary of a life insurance policy while retaining ownership of the policy and access to the cash value. However, because you retain ownership and can change the beneficiary, no income tax charitable deduction is allowed for the value of the policy. In addition, you may also purchase survivorship insurance that covers the lives of two people. When the second insured dies, simply designate that the policy's benefits are payable directly to Covenant House New Jersey as your beneficiary. This form of life insurance is often less expensive, and that in turn lets you make a larger charitable gift.

If you desire immediate tax benefits, you may assign an insurance policy directly to CHNJ. This allows you to take a federal income-tax charitable deduction for the policy's fair-market value or the net premiums paid, whichever is less. Also allowed are income tax deductions for contributions that enable the charity to pay subsequent premiums.

Please call Jennifer Tunnicliffe at 973.286.3410 if you are considering a gift of life insurance.