Has someone you care about benefited greatly from the CDC's services? If so, please considering supporting our services to the region's children through planned giving.
Planned giving involves a future gift to a charity, usually as part of a donor’s larger estate planning process. In some instances these gifts can be structured in such a way that they maintain the value of the donor’s estate while offering a sizable gift to a charity. Although these are often larger gifts, planned giving encompasses smaller gifts as well.
There are a number of reasons people consider planned giving:
- It often provides the ability for a donor to make a larger gift than they would otherwise be able to make.
- Planned giving offers a number of potential tax befits, both now and in the future
- Some options allow the donor to receive additional discretionary funds today in exchange for a future gift.
- Most options allow the donor to receive recognition for their gift during their lifetime.
Due to the complexities of planned giving, it is advisable for potential donors to consult with a financial planner that has expertise in this area. This will help ensure that your planned giving is a good fit for your overall estate plan. When considering planned giving, you may want to consider the following options
Gifting a Life Insurance Policy
Gifting a life insurance policy provides the opportunity to provide a substantial future gift to a charity for the cost of moderate premiums spread out over time. There are potential tax benefits for these gifts. If you are thinking of cancelling an insurance policy that has built up value over the years, consider gifting it to a charity. Naming a charity as the beneficiary within the policy also avoids related probate fees on your estate.
Residual interest gifts
Residual Interest Gifts involve donating a substantial asset, such as a residence or valuable piece of art, to a charity. The donor retains the use of the gifted item or property for a set period, or for life, and they receive a charitable tax receipt when the gift is declared.
Charitable Remainder Trust
This is a 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 in exchange for a partial tax deduction and a lifetime stream of annual income from the charity. This provides tax benefits and additional disposable income for the donor.
Gifts made through a last
will and testament are relatively easy to facilitate, and
they offer potential tax savings to your estate.
To make a gift to the CDC, your will should utilize the CDC's legal name and the Centre's address: The Child Development Centre of Prince George and District Association at 1687 Strathcona Avenue, Prince George BC.
Gifting RRSPs and/or RRIFs
Although Registered Retirement Savings Plans (RRSPs) and Registered Retirement Income Funds (RRIFs) offer good options for retirement planning, they can be subject to taxation of up to 50% of their value upon the death of the holder. Gifting RRSPs and RRIFs to a registered charity preserves 100% of their value.
The gifting of securities provide tax benefits to the donor while providing the full value of the gift to the charity (no capital gains tax).
Endowment gifts are invested for a minimum of ten years. The interest earned either be used or reinvested by the charity each year. Endowment gifts to the CDC can be easily facilitated through the Child Development Centre’s Endowment Fund with the Prince George Community Foundation.