What is Legacy Giving?

• A gift made after deliberate consideration through a financial or estate plan.
• A gift that requires some type of legal documentation.
• A gift that is arranged now to provide funds to City Kidz™ some time in the future.
• A gift made from assets, not current income. Or,
• A gift that has tax advantages under current law.

Gifts of life insurance:

There are a few options for this type of gift.  Whether you purchase a new life insurance policy or own one that is already paid, this type of gift can help reduce your estate’s tax bill while enabling you to make a considerable gift to support at-risk children living in Hamilton’s inner city.

If you have an existing policy that you no longer need due to a change in your personal situation, you can simply make the beneficiary of your policy City Kidz™ Ministry, operating as City Kidz™. The proceeds will not enter into your estate but rather go directly to City Kidz™, thus avoiding probate.

You can also give with life insurance by purchasing a new policy and naming City Kidz™ as both the owner and the beneficiary.  A tax receipt is issued for each premium payment, which results in immediate tax savings.  In addition, a lump sum payment can be arranged.

Charitable Gift Annuity:

This opportunity allows you to make a gift to City Kidz™ and receive from that gift at the same time.  A charitable annuity is a financial investment that offers a guaranteed, predetermined annuity income for life.  In Canada, the government provides for the purchase of life annuities on a special prescribed tax basis, creating value for you on an after-tax basis.  A substantial portion of your payment is also tax-free.

Charitable Remainder Trust:

With this particular type of trust, income can be received throughout your lifetime.  A Charitable Remainder Trust can be established by contributing cash, securities, mutual funds or real estate to the trust.  Upon your death the “remainder” passes directly to City Kidz™.  No encroachment on the capital is allowed, but setting up the trust allows you to receive immediate tax benefits.

A donation receipt is given for the present fair market value of the remainder interest calculated.  This is done by a Revenue Canada formula which takes into account your life expectancy and the present value of the property being transferred into the trust.  Valuations are required to define a value to the remainder interest.

Will Bequest:

Making a will is simple, quick and normally inexpensive.  It is quite common for individuals to designate a will bequest to benefit their favourite charity.  When you make a charitable bequest in your will, the fear of overspending, debts, fixed income, current or future expenses is annulled.  There is no out-of-pocket expense when a charitable organization is written into a will.  Your estate will be issued a tax receipt for 100% of the amount of the bequest, resulting in a tax credit on your final income tax return.

Gift Of Securities:

A donation of securities results in a tax receipt from the charity, similar to a cash donation.  The key difference is with regards to a reduced tax treatment.  If you were planning to sell your shares, you would be taxed at 50% of the capital gain.  By gifting them to City Kidz™ the tax on the capital gain would be completely eliminated.  The securities must be transferred to City Kidz® and not sold by you, the donor.  The gift will not qualify for the reduced capital gain if the shares are sold and the cash then gifted to the charity.

Thank you for taking the time to learn about our Legacy Giving program.  For further information or for a more detailed presentation please contact Renee Bermel  at info@citykidz.ca Thank You!

About Renee Bermel

With over 14 years of experience within the financial management industry, Renee Bermel, founder of the Life Coach Financial, remains an active member of Advocis (National Association of Financial Advisors) and serves as the current president for the local Hamilton/Burlington chapter.  She is also the 2008 Hamilton Spectator’s Reader’s Choice Diamond Award Recipient for the Financial Planner Category.  She holds the position of Director, Marketing and Communications for Women Into Networking and is a member of the Small Business Club of Niagara and Women in Niagara.  Renee volunteers her time with City Kidz working as the Planned Giving Representative.  Renee is one of the co-founders of The Women in Finace Group and is a group of financial professionals partnered together to assist women with all their financial needs.