Consider planned giving. Planned giving allows you to maximize tax savings and make a substantial donation to a cause that you care about. You can donate assets that are immediately available to CMCC and realize tax savings in
the same year. Or you can make a deferred gift, such as a bequest, and reduce taxes in your final return. Either way, gift planning is a personal decision that you should discuss with your legal or financial advisor.
Stocks and Securities
If you donate private shares and stock options directly to CMCC, you reduce your current income tax and save the capital gains tax. If you sell the securities and donate the cash to CMCC, you will receive a donation receipt for the total amount, but you will also be taxed on 50 per cent of the capital gain from your investment. However, if you directly transfer the securities to CMCC, you avoid the capital gains tax and receive the same tax credit along with a donation receipt for the full market value of the securities.
RRSP and RRIF
If you name CMCC as the beneficiary of an RRSP or RRIF, this triggers a charitable donation on death of the owner or s surviving spouse, and can offset taxes on your estate. RRSPs must be changed to RRIFs at age 71.
When the surviving spouse dies, an RRIF is taxed as income, incurring taxes on the estate. Save probate fees and income tax – your gift will be treated as a charitable donation in the year of death, and can be declared on the final tax return and/or the one before it. This tax credit may completely offset the taxes payable on the proceeds.
If you name CMCC as beneficiary or transfer ownership of a policy, you are providing for future generations.
- Donate a paid-up policy and receive a receipt for the cash value of the policy.
- Donate an existing policy and continue to pay the premiums and receive a receipt for the current cash value of the policy and subsequent premiums that you pay.
- Buy a new policy and transfer ownership to CMCC and receive a receipt for premiums you pay.
- Retain the policy and name CMCC as direct beneficiary and your estate receives a receipt for the face value of the policy upon your passing.
Naming CMCC as a beneficiary in your will initiates a charitable donation in the year of your death, and a tax credit on your final tax return and/or the one just before it.
- Specific bequest – leaves a specified dollar amount of cash or assets to CMCC.
- Residual bequest – CMCC only receives money once all other bequests are paid.
- Contingent bequest – leaves CMCC a gift upon death of spouse or specific event.
Create a legacy with as little as $10,000
With a relatively small tax deductable annual investment of between $200 - 500, you can begin to set up a fund in which the principle remains intact year after year, generating interest for the program you choose to support. The minimum requirement is $10,000, with each annual donation eligible for a charitable donation receipt which is applicable for tax purposes. The endowments are individually recorded and accounted for, and form part of an investment portfolio strategy managed by a major financial institution, according to a Board of Governors approved investment strategy.
Once the $10,000 goal is reached, the fund is invested and begins to accrue investment income which is credited into the program of your choice. Investments are selected based on stringent criteria, are individually recorded and accounted for, and form part of an investment.
Some endowment funds provide yearly financial awards for students, specifying the criteria and rewarding those who meet them, others direct funds towards acquisitions for the library, sports or other programs. For those who choose to contribute to annual awards, such gifts are presented during an annual awards ceremony, often by those who make the contribution.
Endowments are a great way to make your donations count for today and for tomorrow.
How to start?
To discuss in confidence any questions you have about making a planned gift, you, your lawyer or estate planning advisor may contact: Development Office at 416 482 2340 x 270 or email firstname.lastname@example.org.
The information provided is general in nature, does not constitute legal or financial advice, and should not be relied upon as a substitute for professional advice. We strongly encourage you to seek professional, legal, estate planning and financial advice before making any decisions.