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Assignment of Dividends

How Your Assignment of Dividends Works– your policy’s Unique Charitable giving Feature

Founded in 1942, the American Bar Endowment is a §501(c)(3) not-for-profit organization composed of members of the American Bar Association. ABE makes annual grants to the American Bar Foundation and ABA’s Fund for Justice and Education to fulfill ABE’s charitable purpose of improving the administration of justice, one of our profession’s highest obligations, by funding research, public service and educational projects in the field of law. ABE also maintains a Legacy Fund for the permanent support of its grantees. By participating in the Endowment’s group insurance programs, designed for and available only to ABA/ABE members, members can contribute to these funding efforts. Lawyers who enroll in ABE-sponsored group insurance programs agree that their share of any dividends payable on the group policies may be retained by the Endowment for its charitable purposes unless reclaimed as outlined below. The Internal Revenue Service has ruled that insured members who leave their dividends with the Endowment are eligible for a charitable contribution deduction on their individual income tax returns.

Members who donate dividends to ABE make a difference--these funds, after administrative expenses, are the primary source of ABE’s charitable grants. They also add to the Legacy Fund. Insured members who donate their dividends are helping to meet their professional and public responsibilities, as well as obtaining valuable coverage for their families. About 90% of members donate their dividends and these members are notified each year in late January of the amount, if any, of the dividend donation for the prior year. (Dividends are not guaranteed and in any given year, a given plan may not pay a dividend; dividends will vary from year to year.)

Members who wish to request a refund of their dividends may do so. The approximate percentage of premium available for refund (if any) on each plan will be published in each November’s ABA Journal along with ABE’s Annual Report; you do not need to wait for this information as refund requests are accepted beginning January 1, for each year. To request that dividends be paid to you rather than donated to ABE: For each year after the first policy year of your participation, a written request for refund (by mail, fax, e-mail to dividends@abendowment.org or online at www.abendowment.org) must be made each year and must reach the Endowment by December 15. When your refund request is received, a confirmation will be sent; retain this for your records. If your confirmation is not received within 3 weeks, contact the Endowment promptly to obtain another. Instructions for new applicants can be found on the bottom or back of the application and apply to dividends, if any, during the first policy year only.

Please note: Members who do not want to contribute dividends to ABE are required to “opt out” each year, using the procedures above. When members sign the application, they are agreeing to make an annual decision whether to contribute. Do not sign the application if you do not agree with these procedures.

To fill out the request for dividend refund form, please click here