Planned Giving

What is planned giving

Planned giving is also referred to as gift planning or legacy giving. It is a donor’s intention to contribute a major gift to an organization, beyond their lifetime. Unlike an annual gift, planned gift is for the future. Donors make arrangements for planned gifts in the present, but they are actually paid out at a later date. It’s “planned” because it takes some thought and preparation, and because you should consult a lawyer and your financial planner about it. The easiest planned gift is part of something you should have anyway: your Will. Everyone, regardless of income or assets, should have a Will, and everyone should prepare that Will with the help of a lawyer and a financial advisor. Including a charitable gift adds a few minutes.

planned giving donation

Why gifts donated as planned giving could be larger than regular donations

By definition, planned giving is not limited by donors’ current wealth. The gifts donated end up being larger and aren’t dependent on one’s regular income. That’s why most planned gifts contributed by donors take the form of life insurance, equity, or real estate holdings. Thus, even if a donor consistently contributed small gifts, their planned gift can be of a much higher value.

Why would you want to plan giving?

Above all, planned giving preserves your legacy. You may give to organizations that act in accordance with your personal values and beliefs. As a result, your planned gift symbolizes the relationship you have built up with the cause you have given to. If anything, you want your contribution to help secure the future of the organization. It also represents your commitment to positively impacting communities in actionable ways.

In order for you to leave behind a major gift, planned gifts can take many different forms. However, the most popular is bequest.

Bequest is the most frequent type of planned gift. They are gifts and dispositions of property made under a will and directed to a specific beneficiary. In your Will, you can choose to leave the Federated Health Charities a specific amount of money, or a percentage of the value of your total possessions. You make arrangements today; Federated Health Charities will receive your gift only after your death. Your estate will receive a tax receipt for the amount of the donation. Charitable Bequests can take many forms, and often consist of

1. Cash savings.

2. Real property
Federated Health Charities retains the right to reject the gift after consultation with the Board of Directors and Lawyer.

3. Appreciated investments that have increased in value since purchase (e.g. stocks, securities, bonds and mutual funds).
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 4. Life Insurance.
Donating a life insurance policy isn’t subject to taxes and you can make a substantial contribution through relatively small monthly or yearly payments. At the same time, you’ll be rewarded for your donation through the charitable tax receipts you receive.

Here are three ways you can donate a life insurance policy to a charity:
– Take out a new policy in the name of the charitable organization. You’ll receive a charitable tax receipt for the cash value of the policy and for any premiums you pay.

– Name the charity as the beneficiary of an existing policy. This is a good option if you already have a policy that your family no longer needs for financial stability. At the time of your death, the charity will receive the policy proceeds and your estate will receive the tax benefits.

– Transfer ownership of an existing policy to the charity and receive a charitable tax receipt for the cash value of the policy. If you owe annual premiums on the policy, you’ll still pay them, but you’ll also receive tax receipts in the amount of your payments.

5. RRSP savings

Donating unused or excess assets in an RRSP to charity can enable a donor to realize an immediate impact without triggering tax, as long as the donation is carefully planned. For high income donors, the tax on the RRSP withdrawal may be entirely offset by the donation tax credit resulting from the gift to charity. Further, the estate will be left with fewer RRSP/RRIF assets that will trigger tax at death.

donate will

Whichever form of planned giving you may consider we would recommend you start with discussing this with your lawyer. You may choose to notify Federated Health Charities of your intention to include the charity into your Will. Donating to Federated Health Charities you will be contributing to 21 very worthy health charities who continue their incredible work in finding the cure for life-changing diseases and supporting patients living with these diseases and their families. And whichever amount you may leave for Federated Health Charities we would accept it with gratitude and distribute the funds in accordance with your will thus keeping your legacy alive.

Federated Health Charities White Logo
Federated Health Charities White Logo

For general questions:

Sarah Wood
Executive Director
437-925-6227
sarah.wood2@ontario.ca

Address

315 Front St. West, 5th Floor
Toronto, ON
M7A 0B8

Federated Health Charities White Logo

For general questions:

Sarah Wood
Executive Director
437-925-6227
sarah.wood2@ontario.ca

Address

315 Front St. West, 5th Floor
Toronto, ON
M7A 0B8

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