Planned Giving
“Tell those rich in this world’s wealth to quit being so full of themselves and so obsessed with money . . . Tell them to go after God . . . to do good, to be rich in helping others, to be extravagantly generous. If they do that, they’ll build a treasury that will last, gaining life that is truly life.” 1 Timothy 6:17-19, (The Message)
The following are some popular methods of leaving a gift to charity either while you are still living or through the Will at your passing.
Donor Advised Funds
A Donor Advised Fund (DAF) is a separately identified account set up through a public foundation operating as a Canadian registered charity. Once the donor makes the contribution, the foundation has ownership of it, but the donor (or the donor’s representative) retains advisory privileges with respect to the granting of funds to other charities of their choice.
It’s like having your own personal, family, or corporate foundation without the hassle and cost.
Bequest in the Will
A gift given through the Will allows the donor to arrange a substantial contribution to the Charity. It is usually an easy process and can be undertaken by a simple inclusion in the Will.
Benefits:
- Offers an ideal way to benefit your Charity and because the gift passes to the Charity at some later date, the donor’s present cash flow is not affected
- The gift can establish a lasting memorial in the donor’s name or that of a loved one
- The gift can be given for general purposes or designated according to the donor’s wishes
- Reduces taxes owned by the estate
Gift Annuity
A gift annuity is a plan which allows the donor to give a substantial donation to the Charity and receive tax favorable income for life.
Benefits:
- Attractive rates of return
- All or a portion of the income can be received tax-free
- Payments are made monthly
- The gift passes to the Charity outside of the estate process
- The gift capital can be designated according to the wishes of the donor
Life Insurance
The use of life insurance to make a charitable gift is one of the best alternatives.
Benefits:
- A significant gift can be made at a fraction of the ultimate value from disposable income
- Tax saving can be immediately realized
- The donation does not affect the donor’s estate
- The gift passes outside the estate process
- The premiums can be tax deductible
Other Methods
There are other interesting ways to help your favorite charity. These include gifts of property and Charitable Remainder Trusts. For more explanation, contact us.
For more information please reach out to us
"By coordinating the donor’s personal and charitable objectives, both can be better served. Thus was born the concept of gift planning." - Vernon L. Graham
"The more I work in Planned Giving the more convinced I am that it holds amazing potential for helping people become better stewards while providing lasting gifts to support the Lord’s work at the same time." - Larry McClanahan, Vice President & Treasurer, Prairie Bible Institute