Leave a legacy; leave your mark.
Planned giving is no ordinary gift; it’s a gift that is…
- made after deliberate consideration through a financial or estate plan
- requires some type of legal documentation
- arranged now to provide funds to CityKidz at some time in the future
- made from assets, not current income, or, it’s a gift that has tax advantages under current law
But more than that, leaving a legacy gift to CityKidz is your best way to ensure that the needs of vulnerable children are met and that they are cared for, for years to come.
There are many ways you can make a legacy gift:
- Gifts of Life Insurance
- Charitable Gift Annuity
- Charitable Remainder Trust
- Will Bequest
- Gift of Securities
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 the inner city of Hamilton, Ottawa or Regina.
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 CityKidz Ministry, operating as CityKidz in the city of your choice. The proceeds will not enter into your estate but rather go directly to CityKidz, thus avoiding probate.
You can also give with life insurance by purchasing a new policy and naming CityKidz 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.
This opportunity allows you to make a gift to CityKidz 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.
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 CityKidz. 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 CRA 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.
For those with an abiding love for children, it’s becoming increasingly common for individuals to designate a Will bequest to CityKidz listed as the beneficiary. When you make a charitable bequest in your Will, the fear of overspending, debts, fixed income, and either current or future expenses is annulled. There are no out-of-pocket expenses when CityKidz is written into your Will, either. And rest assured that a tax receipt for the full 100% amount of the bequest will be issued to your estate and that will result in a tax credit on your final income tax return.
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 CityKidz 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 Planned Giving program. For further information or for a more detailed presentation, please contact our volunteer legacy giving advisor, Renee Bermel, at email@example.com