Planned Giving
Many people make outright gifts of cash, works of art and so on, to charitable organizations every day. The organization gains immediate use of their gift and the donor realizes immediate income tax savings.
However, most people do not realize there are alternatives as well. One alternative is to make a deferred or planned gift.
With a planned gift, you establish the gift in the present, with its actual delivery to the charity sometime in the future. Some planned gifts allow current tax savings.
Will Bequests
Charitable gifts made by wills are probably the most common method used in planned giving for 2 reasons:
It is very simple to designate a beneficiary under your will.
It may be easier to give a gift out of assets rather than of income.
Gifts made by will are deemed to have been made in the year of death. Therefore, the charitable tax credit is received by the estate and can offset any tax owing from the estate.
Life Insurance
The gifting of a new or existing insurance policy is an effective method of planning a charitable gift. This allows people of even modest means to make a gift of sizable proportions with only a small annual or monthly outlay. And for immediate tax relief, a tax credit is available.
Annuities, Trusts, etc. ...
As always, we urge you to consult with an estate planning lawyer or other qualified advisor regarding a will, a living trust or whatever else may best suit your needs. Sound professional help will contribute to your peace of mind - and that of your family.
Your local charity can help you with the correct wording to have your gift used locally, provincially, or nationally. We’re just a phone call away. See Charitable Organizations and Allied Professionals for more information.