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The American Bar Endowment - Contributing Through Insurance
Established by the American Bar Association in 1942 and chartered as a not-for-profit corporation, the American Bar Endowment was designed to
- receive gifts and bequests
- produce an income-producing fund and
- distribute grants to promote justice through education and scientific research in the field of law.
All members of the ABA are members of the Endowment.
In 1955 Wm. Clarke Mason, with the approval of the ABA Board of Governors and the cooperation of New York Life Insurance Co., developed a group life insurance plan to be offered to members by the American Bar Endowment. Participants in the insurance program agreed that any dividends paid by the insurance company would be donated to the Endowment for its charitable purposes in the field of law.
The response far exceeded Mr. Mason's expectations and generated $77,000 in dividends after the first year. During the last five years, members have opted to make annual dividend donations of up to $5,000,000 to the Endowment. About 90% of all participants have elected to leave their dividends with the Endowment. Lawyers and judges meet their personal needs for insurance protection and contribute in a meaningful way to improving the quality of justice.
A Winning Combination-ABA Members And The ABE
The American Bar Endowment depends on the participation of ABA/ABE members and their contributions (gifts, bequests, and contributions of insurance dividends) to help fund the hundreds of public service activities of ABA's Fund for Justice and Education, as well as the research and education activities of the American Bar Foundation.
By far, the largest source of funds is contributions of insurance dividends (dividends are not guaranteed). Members who leave their dividends with the Endowment are eligible for charitable contribution deductions on their personal tax returns. About 90% of members elect to leave the dividends to the Endowment. In this way, ABE members meet their professional obligation to improve the quality of justice in the United States, while providing important insurance protection for themselves and their families.