FundSvcs Community

This is a first for me.  We just received the maturity value on a life insurance contract that matured last month.  We are the owners and beneficiary of the policy.  Previously the donor let us know the policy amount was $100,000 and we created a planned gift entry for that amount over 30 years ago.  We received a check for the mature value of the policy in the amount of $240,012.26.  We are planning to count the difference in our totals for this fundraising year - correct?  And there is no tax-receipt that needs to be sent to the donor?  And, does this get processed thru Development or does Finance handle the "gift" part?

This is a first for me.  We just received the maturity value on a life insurance contract that matured last month.  We are the owners and beneficiary of the policy.  Previously the donor let us know the policy amount was $100,000 and we created a planned gift entry for that amount over 30 years ago.  We received a check for the mature value of the policy in the amount of $240,012.26.  We are planning to count the difference in our totals for this fundraising year - correct?  And there is no tax-receipt that needs to be sent to the donor?  And, does this get processed thru Development or does Finance handle the "gift" part?

Here's the statement from CASE (page 274). As you already counted $100,000, there's nothing more to count (see sentence #2):

Had you never counted anything, as is often the case with realized bequests and life insurance proceeds for which the donor had never told you anything, you can count whatever was realized!

Also, for realized bequests, CASE does have an exception whereby if a donor notifies you of the bequest during a campaign and the donor dies and you realize a different amount during the same campaign, you can count the difference. However, it goes without saying (just as with written-off pledges) that if you realize less than what was counted, you should reduce the earlier amount.

John

John H. Taylor, Principal

John H. Taylor Consulting, LLC

2604 Sevier Street

Durham, NC     27705

johntaylorconsulting@gmail.com

919.816.5903 (cell/text)

Serving the Advancement Community Since 1987

This is a first for me.  We just received the maturity value on a life insurance contract that matured last month.  We are the owners and beneficiary of the policy.  Previously the donor let us know the policy amount was $100,000 and we created a planned gift entry for that amount over 30 years ago.  We received a check for the mature value of the policy in the amount of $240,012.26.  We are planning to count the difference in our totals for this fundraising year - correct?  And there is no tax-receipt that needs to be sent to the donor?  And, does this get processed thru Development or does Finance handle the "gift" part?