Planned Giving

Lifesaving legacy gifts

Planned Giving is one of the most powerful philanthropic tools available to you today. It's also one of the most popular. More and more people are coming to realize the impact that this sort of legacy can have. Planned giving is, in essence, deciding in advance what happens to your estate. It puts you in control. Whether it's cash, securities, life insurance, real estate or gifts in kind, a well-planned gift ensures your legacy makes a statement about the things that are important to you.

By arranging a gift now for the charity to receive at a later date, you structure a gift that will maximize tax benefits and increase inheritances, while providing vital financial support to a cause you believe in.

Everyone benefits from the power of a planned gift - you, your family and the Society. Of course, we want to ensure that each of these groups receives the maximum benefit possible. Which way of giving best suits your goals?

:::

Read down the page for information about these planned giving options:

  • Bequest (in a Will) - save estate tax and increase inheritances.
  • Life insurance - make small contributions now to give a larger gift later.
  • Charitable gift annuities - save taxes and increase your income.
  • Gift of securities - make a significant gift and eliminate capital gains tax.
  • Charitable remainder trust - give an asset and still receive the income it now provides.
  • Endowment - ensure important programs have a secure source of funding.

Review our Planned Gift Summary. For more information, please contact

Fundraising at the Lifesaving Society by phone 416-490-8844, fax 416-490-8766.

 

Our mailing address is:
Lifesaving Society
400 Consumers Road
Toronto, Ontario M2J 1P8

BequestS

The most common and simple form of planned giving is a bequest. You can make a gift of cash or property by including the Society as a beneficiary in your will. Choose the type of bequest that best suits your circumstances and wishes. You retain full control of your assets during your lifetime and your standard of living is not affected.

Your estate will receive significant tax credits that can be passed on to your heirs. Upon receiving the bequest, the Lifesaving Society issues a donation receipt to your estate for the full amount of the bequest.

If you do not have a Will

If you do not have a Will at the moment, you may need to see a solicitor. Although you will have to pay a fee, you will receive sound professional advice and can be sure that your wishes are achieved. Request a free Will Planner and Guide to assist you with your estate planning.

If you have a Will

If you have already made a Will, but would like to leave a gift to "The Royal Life Saving Society Canada Ontario Branch," you can do so by making a simple addition to your existing Will. This is called a codicil. By adding this supplement to your will you can include new instructions and delete old ones without having to go through the task of revoking the whole Will.

Taxes in Canada

Bequests are tax creditable and are not subject to estate taxes or succession duties except in the province of Quebec. Revenue Canada regards such gifts by will as having been made in the taxation year of the person's passing. The taxable income of your estate can therefore be reduced by the amount of your bequest to the extent of the maximum allowable deduction for the current year.

Life Insurance

By naming the Lifesaving Society as the owner and beneficiary of a new or existing life insurance policy, you can make a gift that is larger than you might think possible. For a small annual cost today, you make a significant contribution later. Your gift of life insurance is tax deductible, so you can either receive donation receipts equal to the premiums you pay each year, or your estate can receive a donation receipt upon your passing.

And your estate is protected, since life insurance is considered separate from your estate. A gift of life insurance is not subject to probate fees or settlement delays and cannot be contested.

By naming the Lifesaving Society as the owner and beneficiary of a new or existing life insurance policy, you can make a gift that is larger than you might think possible. For a small annual cost today, you make a significant contribution later. Your gift of life insurance is tax deductible, so you can either receive donation receipts equal to the premiums you pay each year, or your estate can receive a donation receipt upon your passing.

And your estate is protected, since life insurance is considered separate from your estate. A gift of life insurance is not subject to probate fees or settlement delays and cannot be contested.

Charitable Gift Annuities

The gift of annuity provides you the option of contributing to the Lifesaving Society now, and receiving both an initial gift receipt and deductible income for the remainder of your life. Annuities may be combined with RRSP collapse programs to ease income tax burdens.

Gift of Securities

Securities gifts include stocks, bonds, bills, warrants and futures traded on approved stock exchanges in Canada and certain other countries. The 2006 Canadian federal budget introduced a special tax incentive on gifts of publicly traded securities and mutual funds - gifts of securities to a charity eliminate the capital gains tax. Donating securities directly, as opposed to selling the securities first and then donating the cash received, is more lucrative for both the donor and the charity. For example:

A donor has shares bought for $400, which are now worth $1,000. If the shares are sold and the cash donated, the individual will have a capital gain of $600, taxed as though 50 per cent were income.

:::

At an Ontario marginal tax rate of 46.41 per cent, the capital gains tax would be $139.23, leaving a donation of $860.77, which would garner a tax receipt of $399.48.

Direct donations are worth more - If the $1,000 worth of shares is donated directly, the tax credit is $464.10 and the $139.23 of capital gains tax is avoided. So the charity benefits by receiving the full $1,000 and the investor benefits by more than $600. In fact, granted the tax credit was more than the original price, the investor has actually made a profit on the shares.

Charitable Remainder Trust

A charitable remainder trust is a means of giving assets to a charity through a trust agreement. This trust agreement can be established by contributing bonds, stocks, securities, mutual funds or real estate to a trustee who holds and manages it.

The donor receives the income from the trust according to the terms set out when it is established, and a receipt for the remainder. The Lifesaving Society receives whatever remains in the trust after the donor's death.

Endowment

Endowed gifts are major donations to the Lifesaving Society. The funds are invested and the income produced annually goes toward the work of the Society. You can designate the area you would like to support or allow the Lifesaving Society to decide where the earnings are needed most.

If you desire, your gift of endowment can be named in honour of you or your family in recognition of your support, or, you may choose to name your gift in memory of a special person, unless you wish to remain anonymous.