Planned Gifts
What is a Planned Gift?
A Planned Gift is a significant cash, share or property donation (major donations) made in the present but only taking effect in the future. More often than not, it's made within the framework of financial or estate planning (with the advice of an attorney, a notary, a financial planner, a tax specialist or an accountant).
A Planned Gift enables you to immediately decide to later support Cedars Cancer Institute. Your gift will contribute to the purchase of oncolgy medical equipment, cancer research, compreshensive cancer care and a variety of activities aimed at improving the treatment and care of cancer patients and their families at the MUHC
The Planned Gifts listed below also generate tax benefits determined by the type of donation chosen. With our Planned Gifts program, your tax burden is reduced and you get the satisfaction of supporting the Cedars Cancer Institute in its efforts to improve the quality of life of its current and future patients.
Will Donations
Life Insurance Donations
Share Donations
Will Donation
Making a will donation entitles your family to leave a legacy to the Cedars Cancer Institute.
How can I make a will donation?
Your donation can be made in one of the following ways:1) A specific bequest: for example, a fixed sum of money, an art work or property. That's the most common method.
2) A percentage of your assets or a category of assets such as all of your stock market shares.
3) Bequeathing all of your assets to the Cedars Cancer Institute at the MUHC. Your legal advisor can help you draft a last will and testament. You can also communicate with us to obtain further information.
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Here's why:
Life Insurance Donations
3 ways to make a life insurance donation:
1 ) Assignment
You have a life insurance policy that you wish to assign to the Cedars Cancer Institute, who then becomes the owner and beneficiary.
You have a life insurance policy that you wish to assign to the Cedars Cancer Institute, who then becomes the owner and beneficiary.
A tax receipt will be issued to you for the accumulated buyback value of the policy. You will then receive an annual tax receipt for the value of premiums paid in the year.
At the time of your death, the guaranteed capital will be paid to the Cedars Cancer Institute. Your estate will not be entitled to a tax receipt since you will have made the donation in your lifetime.
2 ) Purchase: You buy a new life insurance policy and designate the Cedars Cancer Institute as the owner and beneficiary.
You will then receive an annual tax receipt for the value of the premiums paid in the year.
At the time of your death, the guaranteed capital will be paid to the Cedars Cancer Institute. Your estate will not be entitled to a tax receipt since you will have made your donation in your lifetime. (See example below).
3 ) Designation
You buy a life insurance policy or change one and designate the Cedars Cancer Institute as the beneficiary. At the time of your death, the guaranteed capital will be paid to the Cedars Cancer Institute and a tax receipt will be issued to your estate in order to benefit from reducing or vacating post-death taxes.
You buy a life insurance policy or change one and designate the Cedars Cancer Institute as the beneficiary. At the time of your death, the guaranteed capital will be paid to the Cedars Cancer Institute and a tax receipt will be issued to your estate in order to benefit from reducing or vacating post-death taxes.
An example:
Purchase of a new policy and donation to the Cedars Cancer Institute. Mrs. Smith, a 40 year-old non-smoker in excellent health, learns that her cousin received excellent care at the Cedars Cancer Institute and would like to make a donation.
Purchase of a new policy and donation to the Cedars Cancer Institute. Mrs. Smith, a 40 year-old non-smoker in excellent health, learns that her cousin received excellent care at the Cedars Cancer Institute and would like to make a donation.
With the help of her broker and after speaking Cedars, she buys a new policy designating the Cedars Cancer Institute as the owner and beneficiary.
At the time of her death, Mrs. Smith will have spent $6,000 for a $100,000 donation to Cedars.
Here's why:
• Mrs. Smith pays premiums of $100 per month, or $1,200 per year.
• She receives an annual tax receipt of $1,200.
• She is entitled to a $600 tax credit ($1200 X tax rate of 50%*).
• She is therefore actually spending $600 per year, i.e. $1,200 – $600 = $600.
• The premium is payable over 10 years.
• The total net cost of her donation is $6,000 (10 years x $600).
• At the time of her death, the insurance company will pay the Cedars Cancer Institute an amount of $100,000.
• She receives an annual tax receipt of $1,200.
• She is entitled to a $600 tax credit ($1200 X tax rate of 50%*).
• She is therefore actually spending $600 per year, i.e. $1,200 – $600 = $600.
• The premium is payable over 10 years.
• The total net cost of her donation is $6,000 (10 years x $600).
• At the time of her death, the insurance company will pay the Cedars Cancer Institute an amount of $100,000.
*Tax rates may vary from year to year, depending on government budgets.
Why donate by way of life insurance?
- To save on your income taxes.
- To make a signification donation for an often small investment.
- To avoid having creditors or income taxes affect the guaranteed capital, which is paid directly to Cedars, without going through your estate.
- To help a cause that you feel strongly about supporting
Share Donations
New!
Following the adoption of the Harper Budget on May 2, 2006, donations of publicly listed securities to public charities are immediately exempted from capital gains tax.
What kind of shares can I donate?
- Shares, debt obligations and rights listed on prescribed stock markets.
- Capital stock of a mutual fund corporation.
- Units of a mutual fund trust.
- Interest in a related segregated fund trust.
- Prescribed debt obligations.
Income tax from the exercise of stock options can be reduced in a similar way if the shares or their value are donated.
How do I make a share donation?
1) Tell your broker you want to transfer your shares to the Cedars Cancer Institute. Transferring your shares to us directly, versus donating the proceeds from the sales of your shares, will save you more money. (See example below.)
2) Either you or your broker must notify us.
3) An electronic transfer will be made between your broker and the Cedars Cancer Institute.
4) You will immediately receive a tax receipt corresponding to the market value of the shares as of the date of the donation.
2) Either you or your broker must notify us.
3) An electronic transfer will be made between your broker and the Cedars Cancer Institute.
4) You will immediately receive a tax receipt corresponding to the market value of the shares as of the date of the donation.
Why donate by way of pulic shares from my portfolio?
• To benefit from a tax measure that will save you 50% on your taxes.
• To realize, at a lower cost, the accumulated capital gain on shares held for a number of years.
• To help a cause that you feel strongly about supporting.
• To benefit from a tax measure that will save you 50% on your taxes.
• To realize, at a lower cost, the accumulated capital gain on shares held for a number of years.
• To help a cause that you feel strongly about supporting.
Here's why:
|
|
Sale and donation | Direct donation |
| Market value of shares | $100,000 | $100,000 |
| Cost of shares | $40,000 | $40,000 |
| Capital gain ($11,00 - $1,000) |
$60,000 | $60,000 |
| Taxable capital gain | $30,000$ | $0 |
| Taxes payable (assuming a 48,2% marginal rate) |
$15,000 | $0 |
| Charitable donation tax credit (48,2% federal and provincial) |
$50,000 | $50,000 |
| Net tax savings | $35,000 | $50,000 |
| Net cost of donation | $65,000 | $50,000 |
