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 Foundation. 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 Foundation in its efforts to improve the quality of life of its current and future patients.
Life Insurance Donations
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 Foundation 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.
You have a life insurance policy that you wish to assign to the Cedars Cancer Foundation, who then becomes the owner and beneficiary.
You buy a life insurance policy or change one and designate the Cedars Cancer Foundation as the beneficiary. At the time of your death, the guaranteed capital will be paid to the Cedars Cancer Foundation and a tax receipt will be issued to your estate in order to benefit from reducing or vacating post-death taxes.
Purchase of a new policy and donation to the Cedars Cancer Foundation. Mrs. Smith, a 40 year-old non-smoker in excellent health, learns that her cousin received excellent care at the Cedars Cancer Foundation and would like to make a donation.
• 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 Foundation an amount of $100,000.
- 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
- 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.
2) Either you or your broker must notify us.
3) An electronic transfer will be made between your broker and the Cedars Cancer Foundation.
4) You will immediately receive a tax receipt corresponding to the market value of the shares as of the date of the donation.
• 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.
||Sale and donation||Direct donation|
|Market value of shares||$100,000||$100,000|
|Cost of shares||$40,000||$40,000|
($11,00 - $1,000)
|Taxable capital gain||$30,000||$0|
(assuming a 48,2% marginal rate)
|Charitable donation tax credit
(48,2% federal and provincial)
|Net tax savings||$35,000||$50,000|
|Net cost of donation||$65,000||$50,000|