The Goodwill Foundation is a new way to donate to charity, tax effectively.
The Goodwill Foundation is a new way to donate to charity, tax effectively.
The unique life cover policy, offered through Genesys wealth advisers, allows policy holders who have a need for new life cover or indeed policy holders with existing cover they wish to transfer across to the Goodwill insurer to take advantage of the generous charitable offer afforded by the Genesys advisers. Genesys Goodwill advisers donate an extra 10% of the person's total cover to the charity they nominate.
For the first time, charities will gain a lump sum bequest in the event of a claim, while the donor gains tax efficiencies.
Peter Hawks of Genesys wealth advisers, founder of the Goodwill concept approached leading life insurer Aviva to help develop the customised speciality cover.
The Goodwill Foundation offers a variety of tax benefits:
- Employees can salary sacrifice their personal insurance premiums, paying with before tax dollars to achieve tax savings
- Self employed persons can claim full deductibility
- Benefactors could effect personal cover and direct all benefits be paid to the registered charity, attracting 100% tax deductibility.
Peter explained: "Employees might take out their own life cover and pay for it themselves, but this is not tax deductible. Goodwill in conjunction with their employers offers them life cover with a salary sacrifice component and, assuming they are within contribution limits, they enjoy a significant cost saving.
"Self employed, of course, can claim full tax-deductibility. Both groups can be reassured that the estate monies remain intact, the charitable component is separate"
Companies can offer the deal as an employee benefit, benefiting both the charity and the employee, he added.
"They could specify a company-designated charity or a choice of charities. In the case of some charities and health care businesses it could even be themselves or split between two charities.
"This could be very relevant to registered charitable enterprises," said Peter. "They could offer cover for staff through the Goodwill Foundation concept and gain from the allocated payouts."
He sees other benefits for companies. "The system offers a substantial packaging benefit for employees that will not attract FBT, resulting in a tangible cost saving," he said. "And it sees companies assisting charities for negligible cost.
"You can insure your life and improve someone else's at the same time at no cost for the additional 10% of charitable cover."
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For more details:
Peter Hawks
Phone: (03) 9852 7500
Fax: (03) 9852 9922
Email: peter.hawks@genesyswealth.com.au
Visit www.goodwill.net.au
Notes to editors:
Australian Goodwill Foundation Pty Ltd is a member firm and corporate Authorised.
Representative of Genesys Wealth Advisers Ltd, Genesys is the holder of an Australian.
Financial Services Licence (No 232686) and an Insurance Broker ABN 20 060 778 216.
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About Aviva
- Aviva Australia is a group of two specialist financial services companies: Navigator and Norwich Union Life Australia Ltd. Portfolio Partners is the Australian funds management arm of Aviva plc. Through these companies we provide products and services in the areas of wealth creation and wealth protection for more than 300,000 customers throughout Australia.
- Globally, Aviva Australia is part of Aviva plc, the world's sixth largest insurance group, the largest insurer in the UK and one of the top five life companies in Europe. Aviva was formed in May 2000 through the global merger of CGU plc and Norwich Union plc.
- Aviva is a leading provider of life and pensions products to Europe and has substantial businesses elsewhere around the world. Its main activities are long-term savings, fund management and general insurance. It has premium income and investment sales from continuing operations of A$78.6 billion, and more than A$645 billion of assets under management (as at 7July 2005). The group has more than 60,000 employees and 30 million customers worldwide.
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