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  • 1.  Partial Surrender - Check Received

    Posted 03-17-2025 12:43 PM

    We received a check that was part of a partial surrender of a donor's life insurance policy. We do not own that policy, we are just receiving a check from him. I am assuming we just post this check as we would any others, but knowing this is coming from a life insurance policy, are there any other considerations we need to keep in mind when posting and receipting? Does this get treated just as any other cash gift? 

    Thank you!



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    Colleen Deal
    Appalachian State University
    dealcf@appstate.edu
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  • 2.  RE: Partial Surrender - Check Received

    Posted 03-17-2025 01:06 PM
    As the donor still lives, this is not a traditional "planned gift." Instead, the donor or primary beneficiary has elected to cash in the policy (or so it sounds). So, treat this as an outright gift.

    As an aside, donations of paid-up life insurance policies are not planned gifts. They are donations of property and must be accompanied by an 8283 if the donor wishes to claim a deduction. If the policy isn't paid up and the donor wishes to continue to make premium payments, those are outright cash gifts-not planned gifts. See page 32 of the CASE Standards.

    The only time a life insurance policy is a "planned gift" is when you realize proceeds from a policy you did not own.

    John

    John H. Taylor, Principal
    John H. Taylor Consulting, LLC
    2604 Sevier Street
    Durham, NC     27705

    919.816.5903 (cell/text)

    Serving the Advancement Community Since 1987




    Original Message


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