There are many ways to give – each way to give having its own unique benefit and will make a tremendous impact at Shalem.
Give Through Your Will
A charitable bequest is perhaps the simplest form of future gift to arrange. It is made through a person’s Last Will & Testament, or commonly referred to as “the will”. A bequest could involve gifts of cash, real estate or other property but usually is a percentage of the total estate value that is gifted to charity – or a percentage of the donor’s estate that is gifted after family needs are cared for. A unique way to incorporate such a bequest is to ‘adopt’ an additional child, called the Charity Child, through your will and thereby gift a child’s share of your estate to a charity or charities.
Revocable Deposit Agreement
A revocable deposit agreement is a combination of investment and gift. It is a giving tool that is arranged through our partnership with Christian Stewardship Services. It is especially designed for donors and investors who wish to put their money to work effectively to benefit themselves as well as charity. The donor receives up to fifty percent of the calculated earnings each June and December. The remaining interest earned is distributed to charity. Donors can choose to give all of the interest to charity as well.
Gifts of Endowment
An endowment gift is a way to give that lasts! Shalem depends on charitable support. Every donation is thankfully received and is quickly put to work on immediate needs. You can give a gift that will last for years to come.
An endowed gift can be a permanent gift where the capital is invested for the long-term. It’s like having a savings account or investment where only the interest or income earned on that investment is used each year. Endowment plans can be set up in various ways, depending on your wishes. You may wish to have a fund accumulate for a fixed period of time or choose to have the annual earnings gifted without delay.
An endowed gift can also be arranged with a much shorter time frame in mind for the underlying capital. You can arrange to have the underlying capital applied towards the intended need or purpose with a shorter time frame arranged (eg. 5, 10 or 15 years) as a means to meeting the needs of Shalem.
Gifts of RRSP/RRIF Designations
Registered Retirement Savings Plans (RRSPs) and Registered Retirement Income Funds (RRIFs) are an important part of retirement savings. They can also be powerful donation tools. There are two ways you can use your RRSP or RRIF to support charity as follows:
- Lifetime RRSP/RRIF gift: Normal lifetime withdrawals from RRSPs or RRIFs can be subject to withholding tax. Withholding tax reduces the funds you would have available to donate and may result in a tax credit that does not offset your tax liability. However, there are ways to receive permission from CRA to eliminate withholding taxes so that you can donate 100% of the proceeds and your tax credit will offset 100% of your tax liability.
- Beneficiary Designation or by your Will: Many people need their RRSPs/RRIFs during their lifetime, but are able to donate them after they pass away instead. Income taxes are owed by the estate, plus, there could be three potential unwanted outcomes: funds are subject to creditors, become subject to probate fees, and gifts in the will could be contested by the person’s heirs. This can be avoided by naming charity as a beneficiary of your RRSP or RRIF at your financial institution OR making a beneficiary declaration in your will declaring charity as a beneficiary.
Gifts of Life Insurance
Life insurance can be an excellent planned giving tool for a donor who wishes to make a substantial gift to charity. It is a way for moderate, tax-deductible deposits to be leveraged over time, resulting in a significant gift at the time of death. New or existing life insurance policies may be donated. There are many different ways life insurance can be incorporated into estate planning for the purpose of charitable giving. Usually, some form of permanent insurance is used to fund gifts of this type.
Gift of Securities
People who own stocks, bonds or mutual funds are happy when their investments increase. Unfortunately, when you convert your investment to cash, the capital gain is taxable. By directly donating your publicly listed securities to the Shalem Mental Health Network, you will pay no capital gains tax on their increase in value.
After making a donation, you will receive a tax receipt for the full market value on the day they are received in our account. This tax receipt:
- will help you immediately reduce the amount of tax you pay on your income
- may be carried forward if your donation exceeds your annual limit and used in any of the next five years
- may help reduce the taxes on your estate in the year of your death – and allow more of your estate to go to your beneficiaries.
Make a gift of securities today, through Canada Helps and immediately get receipted.
Charitable Gift Annuity
A charitable gift annuity is similar to a life-long pension you can purchase from a provider of your choice or from Christian Stewardship Services, but with a special twist: any remaining funds at your death are paid to charity. Gift annuities provide a high, tax-efficient income stream that continues for life. Since there is a future gift, you receive a donation receipt at the time the annuity is acquired.
A gift annuity is irrevocable. The funds once receipted, are removed from your estate, and are exempt from probate fees. Rates range from between 4.5-10% depending on your age. In today’s economic climate, rates like that are hard to come by. Gift annuities are popular amongst people who do not have a pension of their own, as they provide an alternative source of income for retirement instead of GICs, bonds, etc. given today’s low-interest environment.
If you live on a fixed income, but plan to make future gifts from your estate, a gift annuity offers you a chance to increase your income AND secure a gift for Shalem.
Gift Planning Support
We recommend seeking planning and giving advice from your financial advisor. If you do not have a financial advisor, we recommend working with Christian Stewardship Services to use their free gift planning support. They can help you plan a current and future gift. Connect with Felicia Van Dyk to be connected with Christian Stewardship Services.
Contact the Shalem Mental Health Foundation Today:
Tel: 905.528.0353 • Toll-free: 1.866.347.0041
