By Jon Kidd and Keith Owen

Are we truly facing the Great Recession?  Whatever the answer, countless charities that rely on donor support to fulfill their missions within the community are suffering from the slowdown in charitable giving.  This is a natural by-product of the current economic times.  According to Philanthropy.com, 52% of charitable organizations saw a drop in donations in the second quarter of 2009.  In addition to the present economic woes, it is also a fact that a history of philanthropic giving can take its toll over time, causing “donor fatigue” in donors of frequent and major gifts.  As a result, more creative strategies are becoming attractive to donors; for instance, many charitably-inclined individuals are donating life insurance policies to non-profit organizations. Alternatively, an individual may consent to charity-originated life insurance.

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By Jon Kidd

Key person insurance is an important component for small, medium-size and large businesses.  Key person insurance may be particularly important for medical practices, CPA firms, law practices and other professional corporations.

Businesses often depend on the expertise and talent of a small number of individuals for their success, as such, the death or disability of one of these key employees or executives may result in substantial economic damage or even the demise of the firm.  To avoid a negative financial impact, prudent companies acquire life insurance on key persons.   Due to the current economic landscape, cash-flow sensitive businesses are constantly looking for alternate methods of funding life insurance premiums.  Life insurance premium financing may be a way to leverage the insurable needs of corporations without dramatically impacting the businesses’ cashflow.

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