Wealth Generation for Nonprofit Executives

Split Dollar Retirement Plans for Large Not-For-Profits

Successful companies have three goals for Top Tier executives:

· Recruit

· Retain

· Reward

Not-for-profits are at a serious disadvantage in offering wealth-building opportunities for top-tier executives compared to for-profit companies. For-profit companies of similar size as not-for-profits may offer stock options and grants to help the executives create wealth. There is no option for equity wealth-building in a not-for-profit.

A not-for-profit may offer a Split Dollar loan plan that can provide a significant tax-free benefit. Most importantly, all costs are recoverable to the not-for-profit.

In for-profit companies, grants and bonuses are generally taxable to employees and an expense to the corporation. The Split Dollar Retention plan is a complicated transaction in that it requires an experienced life insurance agent and a competent attorney familiar with not-for-profit tax and compliance issues.

Kagan Insurance Services has worked in this area for decades.

Kagan Insurance Agency Inc. California License #0565630

Securities offered through The Leaders Group, Inc., Member FINRA/SIPC, 26 W. Dry Creek Circle, Suite 800, Littleton, CO 80120. (310) 797-9080. Kagan Insurance Agency Inc. is not affiliated with The Leaders Group, Inc.

FINRA BrokerCheck.

Customer Relationship Summary (CRS)