When the donor is the creator of the contributed tangible asset, the deduction is limited to the actual cost of producing the asset. Since the property is removed from your estate, estate taxes can be avoided. When you specify Williams as the owner and beneficiary of a paid-up policy, the charitable deduction is for the policy's cash surrender value or net premium paid on the policy, whichever is less. Williams credits paid-up policies at a value approximately equal to the cash surrender value of the policy. If the policy is not fully paid-up, credit is equal to the cash surrender value and any subsequent premium payments made through Williams during the pledge period.
Any subsequent premiums are tax deductible.
Soon you will be able to make your Alumni Fund gift online. All you need is a credit card. No trip to the post office. Office of Public Affairs .