Donating life insurance as a charitable contribution can be a meaningful way to support causes, such as helping Bnei Torah whose incomes are below a certain threshold. To make this donation eligible for a tax deduction, there are several steps you can follow:

1. Choose the Right Charity:

You can donate to Home Safe Home, a registered 501(c)(3) organization, or any other qualified nonprofit. The charity must be recognized by the IRS as tax-exempt, ensuring that your donation is eligible for a deduction.

2. Donate an Existing Life Insurance Policy:

• You can transfer ownership of an existing life insurance policy to the charity.
• The charity becomes both the owner and beneficiary of the policy.
• The premiums you’ve already paid can be tax-deductible, and if you continue to pay future premiums, those payments are also deductible.

3. Purchase a New Life Insurance Policy:

• You can donate funds to the charity to purchase a new life insurance policy for eligible Bnei Torah (those who fall below the income threshold).
• The charity must be the owner and beneficiary of the policy.
• The premiums paid by the charity (using your donation) are not deductible by the charity, but your initial contribution is.

4. Designate the Charity as a Beneficiary:

• Instead of transferring ownership, you can simply name the charity as the beneficiary of your policy.
• This will not offer an immediate tax deduction, but it ensures that the charity receives the proceeds upon your passing.

5. Document the Donation:

To ensure the donation qualifies for a tax deduction:

• Get a written acknowledgment from the charity confirming the donation.
• You’ll also need to file Form 8283 if the donation’s value exceeds $5,000.

Consult with Legal and Tax Professionals:

To ensure everything is handled correctly, consult with a tax advisor or attorney who specializes in charitable donations and life insurance. They can help maximize your deductions and ensure compliance with IRS rules.