Planned Giving is a process where a donor creates a specific plan to leave money or assets to a nonprofit organization. With the guidance of professional investment and legal advisors, planned giving provides maximum benefit to the charity and to the donor. Planned gifts can be made during the donor’s lifetime or at the time of his or her death. Funds in this case are more likely to be from accumulated assets, such as cash from long-term savings, life insurance policies, stocks, mutual funds, registered retirement funds and business assets, rather than from the donor’s regular stream of income.
Planned giving is an opportunity to express your life values and keep your hard-earned assets working forever. By contributing to endowment funds or funds in perpetuity, your donations help to ensure that your children and grandchildren have access to quality healthcare in Smiths Falls. Your donations will touch the lives of people who never had the chance to know you.
Examples of planned gifts include:
Bequests by Will: A gift of property or cash through a Will to a particular beneficiary. Also commonly called a Legacy, bequests allow you to distribute your money and properties exactly as you choose; securing you family’s financial future and acknowledging individuals and organizations
Life Insurance: Charitable donations using life insurance can be arranged in a variety of ways. Donations to the SFCH Foundation can be made through the gift of new or existing life insurance policies. Options involving the naming of beneficiaries, wealth replacement and estate preservation are also available.
Gifts in Kind: Donations of a gift of property other than cash are considered gifts in kind. Examples of Gifts in Kind include (but are not limited to): art works, collections, equipment. The Foundation has the benefit of retaining or selling the article. The fair market value of the Gift in Kind will be determined based on the date on which beneficial ownership is transferred from the donor to the Foundation. A charitable tax receipt will then be issued to the donor based on the determined value.
Endowment: a principal sum permanently set aside and invested by a charity. Endowed funds (capital) are held in perpetuity while only the income (interest) is used for charitable purposes. Endowment funds provide stability for an organization and makes long-range plans possible. Minimum donation amounts apply.
Gifts of Residual Interest: This type of gift occurs when an individual irrevocably donates a piece of property (e.g.: real estate, artwork, equipment, etc.) to the Foundation but retains the right to use that asset for the rest of the donor’s life of for a respectful period of time.
Charitable Remainder Trusts: This type of gift occurs when an individual transfers Investment assets to the Foundation but retains the right to receive the net income (interest) on those investments for the rest of the donor’s life or for a respectful period of time. Minimum donation amounts apply.
Gifts of Publicly Traded Securities: The Canada Customs Revenue Agency (CCRA) has provided specific guidelines for what constitutes a “qualifying security.” The securities being donated to the Foundation must be listed on a recognized stock exchange. The value must be easily determined and publicly available. The CCRA has specific rules in place regarding the valuation of Gifts of Publicly Traded Securities. We recommend that donors contact the foundation and their investment advisor before proceeding with gifts of this type so that we can be sure to apply the appropriate measures for valuation.
Gifts of Preferred Shares in Private Companies: Donors may want to donate all or part of the shares that they hold in a private corporation. Once a fair market value is established and the shares are transferred, donors will receive a charitable tax receipt for the full value of the gift and the Foundation will receive yearly income flow from the dividend or interest payments generated from the shares.
Retirement Plan Accumulations – RRSPs and RRIFs: Donors in Canada now have the ability to name the Smiths Falls Community Hospital Foundation as the beneficiary of their RRSPs or RRIFs. The Foundation has the benefit or a significant future gift provided that the beneficiary designation and the donor’s Will are unchanged. The donor’s estate would receive the tax benefits upon transfer of the donation.
Charitable Gifts Plus Annuity: In this instance, the Foundation would purchase an annuity through a licensed insurance company on behalf of the donor. In exchange for the donation, the charity agrees to make Guaranteed Annuity payments to the donor throughout his or her lifetime. Minimum donation amounts apply.
Gifts of Real Estate: Land or buildings, whether commercial or private, make excellent gifts to the Foundation. Donors make an immediate gift through real estate for which a charitable tax receipt is issued for the fair market value of the gift. The Foundation can then retain the property for its own use or sell it and direct the proceeds for its ongoing charitable work.
This information is intended as general in nature and should not be regarded as legal or tax advice. Because of the important legacy of planned gifts, the Smiths Falls Community Hospital Foundation urges all major donors to seek professional advice to ensure that your financial goals are considered, your tax situation is reviewed and your planned gift is tailored to your individual situation. While some of the gift options outlined here can be completed on your own, the SFCHF strongly recommends that you consult with your own financial and legal advisors to ensure that you make fully informed decisions and to ensure that your family is aware of your plans.