Giving Strategies

Do you want an immediate tax receipt?

Consider giving cash, securities, naming the Charity as Owner of an Insurance policy, buying a Charitable Gift Annuity or contributing to a Foundation

Do you have an insurance policy with a large cash surrender value?

Consider naming a charity as owner of the policy to claim an immediate charitable credit for the cash surrender value of the policy and on-going deductions for on-going insurance premiums.

Do you want to enjoy seeing the benefits of your donation now?

Consider giving cash, securities, buying a Charitable Gift Annuity or contributing to a Foundation

Do you want to postpone giving until after death so you don't give away money that you may need for your own health and welfare?

Consider naming a charity as your RRSP beneficiary, your Insurance Beneficiary, or making a charitable bequest in your Will. If it goes through the Will, there will be probate fees and the donation will become part of the public record. A donation by naming a charity as a Beneficiary on your RRSP or life insurance would provide a donation tax credit for your final tax return, avoid probate, and provide confidentiality.

Do you want your gift to be "revocable" (to be able to change your mind)?

Consider deferred gifts through your Will or through naming a charity as Beneficiary of your RRSP or life insurance.

Do you want to be able to write off a large charitable donation?

20% of income except 100% in year of death

Do you own a security which has appreciated a great deal and on which you would like to avoid paying capital gains tax?

Capital Gains tax is waived on in-kind gifts of appreciated security and listed property to a charity or a Foundation. Contact your local foundation or financial institution or charity.

Do you have listed personal property that you could donate?

Ensure you have an proper appraisal to verify the market value of the art, antique, or collectible that you plan to donate.

Is it important to you to avoid costs and administration?

Maybe you should avoid Charitable Remainder Trusts and Private Foundations since these have legal and accounting fees. If you give to a Public Foundation, they will handle all administrative hassles and your single donation can be spread many ways, keeping it simple for you.

Do you like to receive Donor Recognition?

Consider supporting fewer charities but giving more significant amounts to those you support, and being involved in them with your time and talents. Recognition varies greatly.

Do you like to avoid Donor Recognition?

Consider naming a charity as a beneficiary of your RRSP or insurance - no one needs to know and no one can contest the gift.

Are control and privacy extremely important to you?

Like the name says, Private Foundations are private - you can give to the registered charity of your choice and no one needs to know who you are.

Do you like being involved in the charitable giving and involve your children too?

Private Foundations require huge on-going involvement. Donor-Advised Funds mean some involvement and commitments. All charities are looking for volunteers!

Would you like advice on charities to support or do you already have an idea in mind?

Community Foundations provide advice on charitable giving and local charities and may connect you with others sharing your concerns and priorities. Foundations have differing mandates and guidelines as to the charities that can be supported through them; look for one that support the kinds of charities you want to support.

Do you have a smaller amount to donate?

Charities and Foundations have no minimum donation. Donor Advised Funds often require a minimum donation of $25,000. Charitable Gift Annuities can be purchased for as little as $1,000. Charitable Remainder Trusts may be cost effective over $250,000. Private Foundations may become cost effective over $500,000

Would you like tax-preferred investment income?

You may consider a charitable gift annuity. Many large charities issue their own gift annuities; other charities have agreements with insurance firms. Be sure to shop and discuss terms, features, and guarantees of the alternatives; often these are preferred for individuals over age 70.

Do you want to retain use of investment income while alive, and have whatever's left go to charity when you're gone?

Look into a Charitable Remainder Trust; you may benefit from an immediate donation tax credit and knowing you have use of the investment income as long as you need it and you will support the charity of your choice on death, but be aware this is irrevocable and there are annual administrative costs and trustee fees.

Do you have real estate or other tangible assets (art, antiques) that you would like to use and enjoy during your lifetime but that you would give to a charity on death?

You might consider transferring ownership of the asset to a charity as a Gift of Residual Interest to get an immediate tax credit, avoid probate, and maintain confidentiality, but be aware this is irrevocable.

Are you single or free of dependants?

You may consider naming a charity as beneficiary of an RRSP or life insurance policy. Those having spouses may want to name their spouse as RRSP beneficiary to take advantage of having the tax-free rollover of RRSP's to a surviving spouse; those having dependants or debts will need to have insurance proceeds cover dependants or debts.

Would you like to see a favourite charity supported in perpetuity, after you're gone?

Talk to a Community Foundation or a Public Foundation with a Financial Corporation and consider giving to a Donor-Advised Fund or an Area of Interest Fund.