Planned Giving

 Giving larger gifts, after careful consideration to a charity is collectively known as Planned Giving. These gifts often stem from a desire to make a significant impact to a cause that you have supported through your lifetime.

 Planned Giving can have a positive impact on your taxes, both now and in the future, resulting in the government receiving less and the charity you care about receiving more. There are many effective strategies to help you minimize personal or corporate taxes, while giving vital support to a cause you believe in.

 Planned gifts typically fall into two categories. Present Gifts and Deferred Gifts.

 

Here are some of the most common forms of Planned Giving:

 Outright Gifts

 When you make an outright gift of cash or property to Kelowna’s Gospel Mission, every dollar goes to work the moment it is given and provides vital support for hurting men and women. An outright gift gives you the satisfaction of seeing your dollars at work, knowing that lives are being touched right now because you cared. As Kelowna’s Gospel Mission is a registered charity, donors will receive a tax-receipt that can be used to offset income taxes, both federally and provincially. Rates vary from year-to-year and province to province, and the impact of the tax-receipt will depend on your own personal tax-bracket.

 

Kelowna’s Gospel Mission Endowment fund

 Another option for donors to consider is the giving of gifts to the Mission’s Endowment fund. These dollars are invested and will provide annual income for use of the Mission in perpetuity. A donor may also want to consider splitting a planned gift to provide a portion of their gift for current as well as future needs.

 

 Gifts of Appreciated Property

 In addition to cash, outright gifts can include appreciated property such as stocks, mutual funds and real estate. Special tax considerations can be available for these types of gifts.

 

 History of the "Gifting of Appreciated Securities"

 ·    In 1997 the federal government reduced capital gains tax on donations of stock by 50 per cent on a five-year trial basis. The result was a three-fold increase in gifts of publicly traded securities to charities – from $69.1 million to $200.3 million between 1997 and 2000. The percentage of stock donations jumped from 1.6% to 3.9% of all donations. In 2001, the government made the capital gains reduction permanent.

·     On May 2, 2006 The Conservative government eliminated capital gains tax on donations of publicly listed securities to charities.

 

NOTE TO READER:
Our intent is to provide general information, not to render legal advice. In addition any recent changes in the tax structure may affect this information. Please consult your own professional advisor about the applicability of this information to your situation.

 

How it works

 Typically one-half of a capital gain is subject to tax. With gifts of publicly-listed securities, that amount is eliminated when the gift is made to a charitable organization like Kelowna’s Gospel Mission.

 Listed securities include:

• Shares, rights, and debt obligations listed on most Canadian and certain foreign stock exchanges.
• Prescribed debt obligations
• Shares of the capital stock of a Canadian public mutual fund corporation
• Units of widely held Canadian mutual fund trusts
• Interests in related segregated fund trusts

 

The benefits of these gifts include:

·         Immediate donation receipt for fair market value of security, determined for most securities from their closing price on the date of the gift

·         Charity pays no tax on sale

·         Gifts can be given during donor's lifetime or through their estate

 Gift Annuity

 A gift annuity is an arrangement by which you make a contribution to a charity and receive, in return, guaranteed payments for life, or for a pre-determined number of years. The amount of these payments depends on your age and the size of your contribution. These annuities are guaranteed to continue no matter what happens to the economy or interest rates. If you are married, you may want to choose a joint-and-survivorship annuity that continues as long as either spouse lives. Your gift annuity gives you a special bonus at tax time because sizeable portions of your payments are tax-free.

 

 Future Gifts –Deferred Planned Gifts

 Bequests

 Someday, others will receive everything you own. That can be a rather sobering thought. Fortunately you still have the privilege of choosing the recipient(s) if you have a valid Will. If you pass away without a Will, the Government will distribute your estate according to their guidelines. For the sake of your family, make sure you have a proper Will in place.

Once family is taken care of you may want to consider making a bequest to charities that you have supported during your lifetime. It is a growing practice among community-conscious people to make a provision in their Will for their favourite charities. It could be easier than you think. If you wish to name Kelowna’s Gospel Mission in your Will, you can give a straightforward designation of money or property. Alternatively, you can make a residual gift leaving all or a part of what remains after specific provisions have been met.

 

 Life Insurance

 There are several ways you can use life insurance to make a gift to your favourite charity. You can donate a paid-up policy that you own, but no longer need. You can purchase or assign a policy that you are currently making payments on. Premiums paid on a life-insurance policy that has been donated to a charity, are tax-deductible with the end result being a gift that is larger than the original premiums paid.

 There are a whole range of life-insurance products available. Anyone considering these types of gifts to Kelowna’s Gospel Mission should contact their professional advisor.

 

 Residual Interest

 You can have the satisfaction of making a major gift to Kelowna’s Gospel Mission now and receiving an immediate tax benefit, yet have the ability to continue to use and enjoy the gifted property for the rest of your life. This is known as giving a gift of residual interest with retained life use. These types of gifts usually involve your principal residence or other personal use real estate.  In making such a gift, you transfer the property irrevocably to KGM but retain its lifetime use. When the transfer is made, you will receive a donation receipt for the present value of the residual interest. In some case the residual interest gift is that of fine art-work. In this case the art stays on your walls for your enjoyment during your life-time and you receive a tax-receipt for the residual interest.

 

 Charitable Remainder Trust

 You may have an asset, either invested cash, securities or real estate that you would like to become your gift to Kelowna’s Gospel Mission but for now you need the income it provides. One possibility is to leave the gift as a bequest in you Will. But there is another way, with a charitable remainder trust. Unlike a future bequest, the charitable remainder trust provides you with a donation receipt in the year of your gift. In addition to the tax advantages, placing the property in trust frees you from the management responsibility and removes the property from your estate, guaranteeing your privacy. The charitable remainder trust is a versatile giving tool, and donors considering this option should seek guidance from their professional advisors.

 

Corporate Giving

There are several ways for your company to become more involved in Kelowna’s Gospel Mission.

 

 Gift in kind:

 Discounted services or gifts of products or materials can be a practical and easy way to support the work of KGM. For those wishing to support the Mission through gifts in kind, please contact us directly to discuss giving opportunities.

 Gift of Cash:

 Your company may choose to make a one-time, monthly or annual gift to KGM. Another option would be to sponsor an event or campaign. The benefits of either of these options would be to reduce your company’s annual tax liability and to increase public awareness of your company’s good works. Mission staff will work with you to find a project or event that suits your company needs.

 

 Matching Gifts:

 Your company can double its impact on its ability to make a difference at KGM. If your company offers a matching donor program to its employees, both the employees and the company can benefit from the tax-deductible receipts. Automatic employee deductions will also increase employee’s motivation to give.

 

For more information on these Planned Giving options please call the Gospel Mission at 250-763-3737