These are donations other than cash such as tangible property, real estate, artwork, vehicles, clothing, securities, etc.
They are eligible for donation credits based on the fair market value at the time of donation. For tax purposes the gifted
item will be deemed to have disposed at fair market value on that date.
Gifts of Securities
You can gift securities that you currently own and receive preferential tax treatment compared to cashing in the securities
to provide cash. Again, may we suggest that you seek Expert Advice if you are thinking about transferring assets that have
appreciated in value; you should seek expert advice from a tax specialist or financial planner. We strongly recommend professional
advice to ensure that your financial goals are considered, your tax situation reviewed, and your Planned Gift is tailored to your
circumstances.
Capital Losses ...
Turn Capital Losses into Charitable Giving ...
If you have large unused capital losses and are in a higher tax bracket, you can use Government Incentive Securities
(Limited Partnerships) to increase your charitable giving. By investing in LP's, you receive a tax deduction similar
to an RRSP contribution. Use the tax refund this provides to gift to charity. When your initial investment matures,
it is treated as a capital gain, thus only 50% is taxable. This capital gain is then offset by any unused capital
losses that you have. To maximize on this strategy, consider "rolling over" the LP on its maturity (normally every
two years). When reinvested, it creates an additional tax deduction, which again creates a tax refund that can be
donated to Hospice. This strategy can be used for a number of years. At the end of which, your receive the return
of your principal (this could be higher or lower depending on market fluctuation), and you have benefited a worthy
organization. Please seek professional advice to ensure this strategy is appropriate for your situation.
RSPs & RRIFs ...
Most highly taxed.
RRSPs and RRIFs are among the most highly taxed in your Estate. At your death, they are treated as if they had been cashed
in all at once. After taxes, your beneficiaries may be left with as little as 50% of the total. Making charitable gifts
preserves the capital in these plans. Because you are making a charitable gift of the plan, 100% of the money goes to the charity.
If you name the beneficiary directly on your plan, the gift will pass outside your Estate which will save on probate fees.
Your Estate receives a 100% tax credit claimable against your final two years of income. Naming AHS can preserve the assets
in your Estate for your heirs, and at the same time, allow you to make a significant contribution to a cause you care about.
Estate Giving
Practice "Will Power"
You can ease the burden of practical, end-of-life issues for those you leave behind by preparing your Will. Exercising "Will power"
enables you to provide for your loved ones as you wish, not as the government determines. You also can arrange charitable bequests,
charitable gift annuities, charitable remainder trusts and more, entirely at your discretion, and you can change those provisions in
your Will at any time.
A Charitable Bequest
A bequest is a gift to a charity from a donor by Will or Trust Agreement.
The majority of planned gifts are made by bequest, which, apart from legal fees, costs the donor nothing during their lifetime.
A bequest can take many forms, including a certain sum of money, a particular piece of property, or a percentage of whatever
remains after expenses or settlements. A donor can also make any one of the aforementioned bequests subject to a contingency,
such as, for example, if the donor is not survived by spouse or children.
Bequests can be made for specific purposes. A bequest will provide a tax credit on the final tax return. Depending on individual
circumstances, a charitable bequest may be a way of diverting tax dollars to a charity without significantly impacting the donor's
ability to provide for beneficiaries such as family and friends.
Why Make a Bequest Now?
It is convenient. A Will bequest can be made no matter how old you are, and for any amount you want.
It is simple. A bequest is easy to arrange — simply ask your lawyer to include a bequest in your Will.
It is flexible. Your bequest can be a specific amount, a percentage of your estate or the residue of your estate —
in other words, a gift after your debts have been paid and other bequests have been made.
It is cost-effective. There are no extra out-of-pocket costs. Your present income will not decrease.
It provides tax relief. A charitable bequest is the only effective method to reduce estate taxes.
It assists tax planning. The AHS will issue a tax receipt for the full value of your bequest. This receipt
will be used to reduce the tax payable on your final tax return. If your bequest exceeds 100% of your net income,
the excess may be carried back to the previous tax year.
It gives you the control. You alone retain use of the charitable gift for the duration of your lifetime.
It provides you peace of mind. You may change your Will at any time.
It is satisfying. Planned gifts are made for personal reasons, in addition to ensuring that AHS continues
its long commitment to providing compassionate hospice care.
Your bequest symbolizes a lasting memorial for you, your family or anyone that you may wish to honour.
However, the Abbotsford Hospice Society recommends that you consult your lawyer or estate planner
regarding the specific wording of any Charitable Will Bequest.
Set Up A Charitable Gift Annuity
Why Set it Up Now?
Annuities provide you with income for life and may be a good investment for you to consider if you fit the following profile ...
You are over age 65.
You would like to support AHS now, or at your death, or at the death of both yourself and your spouse.
You are in need of the income while you are alive.
The interest on the majority of your investments is fully taxable.
You are looking for an alternative to Guaranteed Income Certificates (GICs).
Charitable Gift Annuities are investment vehicles that offer the same income security as GICS, but with better cash flow. If
you make an irrevocable gift of capital to The Abbotsford Hospice Society for a gift plus annuity, part of the funds, as
determined by you and AHS (suggested minimum 20%) becomes an immediate gift to AHS. The remaining funds are used by AHS to purchase
an annuity from a top-rated insurance company and provide one for you.
You will receive guaranteed income for life. In addition, you will receive a tax receipt for the donation portion of your
gift. The annual income you receive from the annuity can be all, or largely, tax-free. You will also have the benefit of
seeing your gift in action in AHS programs during your lifetime.
When you take into account the tax credit from the donation, an annuity based on a 7 per cent payout, for example, may be
equivalent to a GIC paying 10% to 14%, depending on your marginal tax bracket. A Charitable Gift Annuity requires a minimum
investment of $10,000 and a minimum donation (from that amount) of 20%. However, your situation will be unique to you, and
the amount of your annuity will depend on variables like your age and the current rates. The older you are at the time you
take out your annuity, the better your return. You can contract for a single or for a joint annuity with your spouse, with
a last-to-die clause.
A bequest is a revocable gift in your Will. It is a gift that you can change at any time in your life through the addition
or elimination of beneficiaries.
A gift in your Will may be structured by ...
Naming a specific sum of money or article(s) of property.
Naming a percentage of your estate.
Naming a charity as an alternate beneficiary.
Giving the residual or a portion of the residual of your estate
(what is left after specified gifts have been distributed).
Charitable Remainder Trust
A Charitable Remainder Trust is a way of giving assets to The Abbotsford Hospice Society (AHS) through a trust agreement. You
contribute bonds, stock securities, mutual funds or real estate to a trustee who holds and manages the trust. You would choose
a Charitable Remainder Trust because you have an asset that you would like eventually to give to AHS, but you want the income
it now provides or you do not wish to part with the asset now. The trust can provide you with a lifetime income. A tax receipt
is issued upon transferring assets to a trust that names AHS as the capital beneficiary.
The five-year carry forward provision allows effective tax planning while alive rather than the one-year carry back
upon death.
There is beneficial treatment of capital gains. If appreciated property is donated to a trust, only those gains attributed
to the residual interest are recognized.
The capital gains are "frozen" and are dealt with at today's value.
Your gift is not subject to probate fees and other estate costs.
You avoid Will challenges. Trust assets are not considered part of your Estate.
By transferring assets to a trust, your decision is private.
The trust remains in your assets until death, at which point AHS will receive the "remainder"
of the property in the trust.
You and your gift can be honoured during your lifetime.
When you make AHS the beneficiary of any of your retirement options, please
let us know, so that we can thank and honour you in your lifetime.
