At the moment, there isn’t a tax break for legacy giving policies (also known as planned giving).
To receive a tax break, it’ll depend on the asset used to fund the gift. For instance, if the gift was made during the donor’s lifetime or at death, and whether the donor retained an income interest from the gift. Below are more guidelines:
Outright, lifetime gifts of cash, or of assets like securities held by donors for more than 1 year (“long-term capital gain property”), are deductible at fair market value.
The charitable deduction for a gift that returns income to donors and/or other beneficiaries, such as a charitable gift annuity or a charitable remainder trust, is the fair market value of the gift asset minus the present value of the income interest retained.
Revocable gifts that will be paid to your organization upon the death of the donor do not generate an income tax deduction. Therefore, donors do not receive a deduction for including a charitable bequest when they write their will, for naming you the beneficiary of a life insurance policy, or for designating your organization to receive the remaining balance of their retirement plan.