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Charitable Giving

Charitable donations can be made through gifts of life insurance, outright gifts of cash, pledges, securities, bequests in wills, in memoria and special occasion gifts and payroll deductions.

Life Insurance

A gift of life insurance is an attractive way to make a charitable donations, at a modest cost. Talk to your life insurance agent or to the charity of your choice:

1. Transfer an existing paid up policy to the charity, and receive a charitable tax receipt for the cash surrender value. This is an attractive option for the many older policies which have long since been paid up. Originally for a modest amount, many have grown with the reinvestment of dividends. The same could be accomplished with any policy.

2. Designate the charity as beneficiary on a new or existing policy. The estate of the insured will receive a charitable tax receipt for the face amount of the policy; The charity receives a substantial donation to benefit the community. The tax deduction can be applied by the estate in the year of death, and carried back to the preceding year.

3. Transfer a new or existing policy to the charity with a pledge to pay the premiums each year. You receive a charitable tax receipt for the amount of the premiums paid each year. No receipt is issued for the proceeds of the life insurance on the death of the insured.

4. Purchase wealth replacement insurance: make a cash donation now to the charity, and use the tax saving to buy life insurance to replenish your estate for your family;

5. Buy a life insurance policy equivalent to the value of your RRIF or RRSP, and designate the charity as beneficiary of the RRIF or RRSP. On your death, the charity issues a charitable tax receipt which offsets the tax impact; your estate receives the life insurance proceeds. The minimal cost of the insurance can double the funds available to your estate and the charity.