摘要 |
A method of funding a tax-exempt organization. A donor utilizes an original principal sum that is separated into first and second distinct parts. The first part is given as a freely given, separate, and immediate cash donation to a tax-exempt organization. The second part is utilized to purchase an equity-indexed annuity contract, which provides a premium bonus for the initial premium deposit. The corresponding increase in the donor's net worth due to the premium bonus offsets the loss in net worth caused by the cash donation to the tax-exempt organization, resulting in no reduction in the net worth of the donor. At the same time the donor has provided the tax-exempt organization with a cash donation.
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