Life insurance can be an inexpensive way to make a substantial gift to the SD Historical Society Foundation. The donor can make the Foundation the owner and beneficiary of a new policy. Another method would be to make the SD Historical Society Foundation the beneficiary of an existing policy. The tax benefits would vary with the type of policy.

Example:

The donor purchases a new whole life policy and makes the SD Historical Society the owner and beneficiary. The donor writes a check to the Foundation for the annual premium for each year. The Foundation then pays the life insurance company the premium and gives the donor an annual receipt in the amount of the premium as a gift.

Benefits:

1. The donor is eligible for an income tax deduction for a cash gift to pay the premium.

2. The donor can designate the intention of the gift for use after their death.

3. The donor provides a valuable benefit to the SD Historical Society Foundation.

Any example is simply an illustration and a tax professional should be consulted prior to any donation.