Planned Giving
Are
you considering donating to a worthy charity? The Child
Development Centre’s services provide lifelong benefits to the lives of
the children we serve. Each year we assist over 1000
children,
improving their social, emotional, physical, cognitive, and
communication skills.
We welcome gifts of all sizes. As a
non-profit charity, we provide charitable tax receipts for all
donations of $20 or more.
If you are considering a larger
donation to a charity, there are many options to consider; we recommend
you consult with an expert in financial planning. The
following
are some of the options that you may wish to consider.
Gifting a Life Insurance Policy
Gifting a life
insurance policy
provides the opportunity to provide a substantial gift for the cost of
moderate premiums spread out over time. Depending on how the gift is
made, there are potential tax benefits for these gifts as well.
Residual
interest gifts
Residual Interest Gifts involve the donation of a substantial asset,
such as a
residence.
The donor retains the use of the gifted item or property for a set
period or for life, and they are eligible for a charitable tax receipt
when the gift is declared.
Charitable Bequest
Gifts made through a last
will and
testament is probably the most common type of planned
giving.
While the gift does not provide you with immediate tax
savings,
it does provide the potential for tax savings to your estate.
The
gift is also revocable, meaning you can change you mind
regarding the gift at a future time.
Gifting RRSPs
and/or RRIFs
Registered Retirement Savings Plans
(RRSPs) and Registered Retirement Income Funds (RRIFs) are frequently
used for retirement planning. However, unless
adequate arrangements are made, they can be subject to taxes of up to
50% of their value upon the death of the holder. The gifting
of
RRSPs and RRIFs to a registered charity preserves 100% of their value.
Charitable Remainder Trust
With a charitable
remainder trust
a trust is set up to pay income to the donor or other specified
beneficiary for a fixed period or for life. At the end of the trust,
the remaining assets pass to the charity.
Charitable Gift Annuity
With a charitable
gift annuity
the donor makes a gift to their charity. Part of the value of
the
gift is used to set up an annuity for the donor -- providing a
tax
receipt for the donation and additional income for the donor.
Gifting Securities:
The gifting of securities provide tax benefits to the donor.
In addition, tax exempt
charities are able to benefit from the full value of these gifts (no
applicable capital gains tax).
Endowment Gifts
Endowment
gifts
are invested for a minimum of ten years. The interest or income earned
on that investment can either be used or reinvested by the charity each
year. In addition, donations can be made directly to the
Child
Development Centre’s Endowment Fund with the Prince George Community
Foundation.
