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Method and system for generating endowment for a tax-exempt organization

  • US 20040019506A1
  • Filed: 07/23/2002
  • Published: 01/29/2004
  • Est. Priority Date: 07/23/2002
  • Status: Abandoned Application
First Claim
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1. A method for generating new endowment for a tax-exempt organization, the method comprising the steps of:

  • identifying a plurality of donor individuals;

    purchasing a plurality of life insurance policies, one for each of the donor individuals, each policy having associated therewith an annual premium and a death benefit, wherein the tax-exempt organization is the beneficiary of each policy; and

    obtaining a premium loan from a first financing entity to the tax-exempt organization, said premium loan being sufficient to pay the premiums cumulatively due for the plurality of life insurance policies, wherein interest accumulates on the premium loan to create a premium loan balance;

    wherein, upon the death of each donor individual, a predetermined priority portion of the death benefit of the respective life insurance policy is used to pay down the premium loan balance, and any remaining amount of said death benefit is accumulated in the new endowment of the tax-exempt organization.

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