How You Can Give $1million to Charity

What are the best ways to give money to charity? Here are a few options:

Sell your share in a business.

Rohini Nilekani, wife of Infosys founder Nandan Nilekani, just sold some of the shares she owns in that company. She intends to use the proceeds from the sale (worth $27 million pre-tax) to fund charities in the areas of water, education, environment and governance.

Set up a private equity fund.

Tim Gocher set up a private equity fund for Nepal. It is an “impact fund” with the goal of creating wealth, creating jobs, and creating a better life for residents.

Buy life insurance.

Life insurance can turn a small premium into a large benefit for the charity of your choice. You don’t have to sell any property or start your own investment fund. You simply buy a policy and make the proper arrangements.

To give you an idea of how economical this gift can be, here is some sample pricing. All rates are for $1 million of universal life guaranteed to age 100. The rate class is preferred nonsmoker.

Male age 40, preferred nonsmoker rate: approx $6000/year for $1million guaranteed to age 100.

Female age 40, preferred nonsmoker rate: approx $5000/year for $1million guaranteed to age 100.

Male age 50, preferred nonsmoker rate: approx $8200/year for $1million guaranteed to age 100.

Female age 50, preferred nonsmoker rate: approx $7200/year for $1million guaranteed to age 100.

Male age 60, preferred nonsmoker rate: approx $15,500/year for $1million guaranteed to age 100.

Female age 60, preferred nonsmoker rate: approx $12,500/year for $1million guaranteed to age 100. 

Can you think of any other financial instrument that can give such a benefit for pennies on the dollar – on a guaranteed basis?

 

 

Want to learn more?
Read my free guide, How To Get Great Life Insurance Rates and learn how you can get life insurance companies to compete for your business, at no risk or extra cost.