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Making a planned gift can benefit both you and St. James. The gift is established in the present,
with its actual delivery to the charity some time in the future. Through the simple device of a Will, almost anyone can
become a special donor. Planned gifts will allow tax savings, some current and others that are realized by your estate.
More and more people are including St. James in their estate plans through planned giving. After they ensure that
their family is cared for, they want to ensure that The Society continues offering aid and assistance to those who are
in need, especially to those bypassed by the normal channels of charitable assistance.
Below are some information about your planned giving options:
Our Planned Giving representative can answer any questions you may have and also help to establish the right method of planned giving for you. If you are interested in more information about planned gifts, please feel free to call Rose Gidzinski at (604) 606-0305.
Gifts of Life Insurance
Insurance gifts are cost-effective and allow donors the ability to give a larger gift than you
may have thought possible. Since February 2000, a charity can be made the beneficiary of a life insurance policy.
Upon death, the benefits of that policy can go directly to the charity and your estate receives the resulting
charitable tax receipt. In this instance, the proceeds of the life insurance policy avoid your estate and thus
avoid probate taxes. There are two ways that you can use a life insurance policy to benefit the work of St. James:
Existing Policy
You can use a policy that you presently own and change the ownership and beneficiary to St. James.
For premium payments that you make, St. James will provide you with a tax receipt for the full amount. You can also retain
ownership and name St. James as a beneficiary. However, in this case, Revenue Canada does not allow a tax receipt to be issued.
New Policy
You can take out a new policy and make St. James owner and beneficiary or just beneficiary. However, as indicated
above, unless St. James is owner of the policy, Revenue Canada will not allow a tax receipt to be issued. The advantages of using a life
insurance policy to make a planned gift are:
• You can receive considerable tax benefits;
• You can choose from a full range of products, price ranges, and payment periods to suit your circumstances;
• Your gift is not subject to taxes, probate costs or estate debts;
• You can make a substantial future gift through relatively small monthly, yearly, or single deposits from current income.
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Wills and Bequests
A bequest through your Will to St. James can be a tangible expression of appreciation for the services that
St. James offers - a gesture that might not be financially possible during your working or retirement years. There are different
ways to make a bequest to St. James:
Specific bequest - a gift of a fixed amount of cash or a particular asset;
Percentage share - a gift of a percentage share of the whole estate;
Contingent bequest - a gift that will take effect only in the event of the prior
death of other named beneficiaries.
If you are about to have a Will drafted for the first time, or are considering making changes to your current Will,
your lawyer can include a bequest to St. James. St. James's Board of Directors suggests the following language for use
in your Will:
To pay St. James Community Service Society the sum of $ _____ (or ___% share of my estate) to be used
for such purposes of the society as its Board of Directors may from time to time determine.
Charitable gifts made in a Will are deemed made in the year of death. Therefore, the charitable tax credit is
received by the estate and can offset any tax owing from the estate. The information you provide is kept entirely confidential.
You are not obligated to maintain your bequest should your circumstances or intentions change. A bequest is a revocable gift.
You can modify and amend your Will at any time.
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Gifts of Shares and Securities
Tax changes in the 1997 Federal Budget have made donating publicly listed securities, such as stocks, bonds and
mutual funds more attractive. The budget contains three key tax incentives that enhance donating publicly listed securities
to charities.
The amount donors can claim for tax free status on their income tax has risen from 50% to 75%. If a person makes
a donation equal to or less than 75% of their annual income, they can claim it as a tax credit. When the owners of appreciated
securities donate them to a charity they receive a receipt for the full market value of their gift, but only need to
report 37.5% of the gain.
An additional advantage to donating publicly traded securities is the 25% capital gains limit (excluding gifts
to private foundations). The rate of tax on the gain the donor of the security realizes has been reduced from 50% to 25%.
The tax that the owner of a security must pay is therefore greatly reduced by donating it because they aren't taxed on
it as additional income.
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Charitable Gift Annuities
A charitable gift annuity is an irrevocable contract between you and a charity, under which you contribute
cash or other property in exchange for a specified, guaranteed, tax-preferred income paid at regular intervals for life.
Who would be interested in purchasing a charitable gift annuity?
It would appeal to individuals who are age 65 plus, who:
• Would like to maximize their current after-tax income;
• Would like to make a current gift to a charity but prefer not to surrender present income.
A charitable gift annuity offers maximum current after-tax income and a current donation to a charity.
Depending on age, all or a substantial portion of the annuity payments will be tax-free.
How does it work?
You decide to make a gift of cash or property to St. James. Acting on your behalf, St. James uses
a portion of the contribution (normally 70-75%) to arrange for the purchase of a commercial annuity that will pay you the
agreed upon income amount at regular intervals. St. James retains the excess and uses it for its charitable purposes
as agreed with you, the donor. Your payments are made either directly to you, or to St. James, which in turn pays
them to you. St. James sends you a special form (if required) for tax purposes.
Example:
Female, age 78, contributes $50,000 for a gift annuity.
• Life expectancy 11.9 years
• Annual payments @ 8.2% = $4,100
• Total expected return = $48,790
• Tax-free portion of payment = 100%
• Donation receipt = $1,210
This example is subject to change according to the rates available.
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Gifts of Residual Interest
A gift of residual interest is an arrangement where an item of value is deeded to St. James but the
donor retains the use of this property for life or a term of years. The donor is entitled to a tax receipt for the present
value of the property at the time the gift is made.
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Charitable Remainder Trusts
A charitable remainder trust can be made within the donor's lifetime or established within the Will.
Under this type of planned gift, the donor makes a gift to St. James through a trust agreement. If the property
generates income, the net will be paid to the named beneficiaries.
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Other Planned Gift Options
• Gifts of Real Estate
• RRSP's or RRIF's
• Endowment Funds
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