Best Suited Giving Options Type of Gift Cash Gift Charitable bequest in will Gift of listed personal property, including land Gift of appreciated security Registered Accounts (RRSP, RRIFs, LIFs, LIRAs, or TFSA) Charity as insurance beneficiary Benefits of Gift Immediate gift, irrevocable, possible recognition. Immediate tax receipt; can use tax credit up to 75% of income; no fee or accounting costs, no probate, complete privacy, no minimum amount Deferred until death; revocable; tax receipt on final tax return; can use up to 100% of income in year of death; can waive capital gains if Will specifies “in‐kind” gift of property; estate trustee; legal and probate fees Can be immediate or deferred, or immediate with a life interest; tax receipt in year of gift; revocable if gift is deferred; can use tax credit up to 75% of income, or up to one 100% of income in year of death; capital gains tax waived on donation of property; there are appraisal and legal fees Can be immediate or deferred; revocable if deferred; use tax credit in year of gift; capital gains tax eliminated on donations of publicly traded securities Gift deferred until death; tax receipt on final tax return; can use tax credit up to 100% of income in year of death and year before; revocable; no probate fee; no administrative costs; minimal effort for estate trustee Gift deferred until death; revocable; tax receipt on final tax return; can use tax credit up to 100% of income in year of death and previous year; no probate fee; privacy; premiums not deductible Best Suited Anyone who wants to make a difference through a current gift of cash. (Any Age) Give to charity from what’s left at the end; may specify amount or residual from estate (Age 30+) For those who own property that has a clear appraised value (Age 55+) For those whose shares have high capital gains and a low cost base (Age 30+) No spouse for registered account rollover; other assets in estate (Age 30+) If you want to defer donation; if death benefit not needed for estate costs or for dependents (Age 30+) St. Joseph’s Healthcare Foundation – 224 James Street S., Hamilton, ON L8P 3A9 (905) 521‐6036 Type of Gift Charity as insurance owner Public or community foundation Donor‐advised fund at public foundations Private foundation Charitable gift annuity Charitable remainder trust Benefits of Gift Immediate gift; irrevocable; immediate tax receipt for cash value or fair market value of policy; continuing premiums considered donations; no donation tax credit at death; no probate fee; privacy Immediate gift; immediate tax receipt; can use tax credit up to 75% of income; irrevocable; may choose an area of interest to support; low costs Immediate gift; immediate tax receipt; irrevocable; can recommend charities to benefit; some choice of investments; foundation carries operating costs; can name fund for additional recognition above certain dollar amount Immediate gift; immediate tax receipt; irrevocable; control, privacy; ongoing involvement, administration, legal accounting costs Deferred gift to charity with life time tax savings; immediate tax credit for portion of amount donated; increased after‐tax income from annuity; irrevocable; avoids probate Immediate gift when trust is settled; immediate tax credit based on net present value of donation and donor’s life expectancy; irrevocable; trustee; legal and accounting fees, avoids probate fees Best Suited If estate and dependents don’t need insurance; must be willing to continue paying premiums (Age 30+) Small or large gifts; like‐
minded people (Age 30+) Large strategic gifts; more than $25,000 in perpetuity; ongoing involvement; see donations at work; family involvement (Age 55+) Larger strategic gifts of $1 ‐ $2 million; recognition; ongoing personal and family involvement (Age 55+) Loyalty to a large charity; guaranteed income for set number of years or for life (Age 60+) More than $300,000; life time tax savings; gift will benefit charity at death (Age 70+) St. Joseph’s Healthcare Foundation – 224 James Street S., Hamilton, ON L8P 3A9 (905) 521‐6036