Planned giving vehicles include:

• Planned Giving through a Will or Trust

  Each year thousands of Canadians will use a Will or Trust to determine the final distribution of their estate. A portion of the estates assets may be directed as a gift to the benefit and support of a charitable organization, such as the Cowichan District Hospital Foundation.

  As the donor, you and your estate can benefit from important tax-saving opportunities when you make a bequest through your Will or in establishing a Trust.

  • The basic principle is that on the income tax return of the year of death, your executor can claim a tax credit for your bequest in an amount up to 100% of the net income.
  • As well, any unused credit can be carried back to the year prior to death in an amount up to 100% of net income for that year.
  • The income tax savings as a result of a $10,000 cash bequest will be approximately $4,370.
• Life Insurance or Annuities

  Life insurance is also an easily arranged gift, where the premiums qualify for a tax credit, by transferring the policy to a charitable organization, such as the Cowichan District Hospital Foundation.

  A donor could create a substantial endowment by setting aside sufficient annual donations for the Foundation to pay the premiums on a new or existing policy. Insurance policies purchased many years ago may no longer be needed and these make excellent gifts to your Hospital Foundation.

  Another way to provide a future gift to the Foundation is to enter into an annuity contract. The Foundation, as the beneficiary of the principal amount of the annuity, agrees to pay you a fixed amount of annual income. A tax credit is available to you on the difference between the amount gifted and the annuity payments.

• Gifts During Your Lifetime

  Gifts made to charitable organizations, such as the Cowichan District Hospital Foundation, include cash, gifts in kind (real estate, securities, personal property, etc.), certified cultural property such as artwork, and/or cash value life insurance.

  If you are planning to make a charitable donation this year, consider this tax-saving strategy. If you’ve determined that you will be selling some of your current investments, you have an opportunity to reduce the tax you would otherwise have to pay on the sale of your investments if you donate the investments directly to a charity. Although a donation of property is considered a disposition for tax purposes, under the new tax rules, the taxable capital gain realized on a donated publicly traded security is eliminated. In either case, you will receive a tax receipt for the full amount of your donation regardless of the tax treatment of the capital gain.

  • On a gift of $25,000 in cash the combined Federal and Provincial tax savings presently available are in excess of $10,000.
  • The tax credit is not dependent on the donor’s level of income, except that donations exceeding 75% of income must be carried forward to any of the next five years.
  • The full cash value of an established life insurance policy is treated like a cash donation and would provide the same tax savings.
  • If a donor is gifting property or stock that has appreciated in value since its purchase, then a tax credit is available to reduce the taxable gain that would otherwise be realized.
  • If a piece of artwork is certified as “cultural property”, then the gain in the value of the artwork can be used to obtain a significant tax credit.