A bequest is a revocable gift in your Will. It is a gift that you can change at any time in your life through the addition or elimination of beneficiaries.

The Benefits to You

• The satisfaction of establishing a significant gift to a cause that you care about.
• You retain full control of the charitable gift for the duration of your life.
• Your bequest will provide tax relief to your estate. The SFCHF will issue a tax receipt for the full value of the bequest. This receipt can be used to reduce the tax payable on your final tax return. If your bequest exceeds 100% of your net income, the excess may be carried back to the previous tax year.
• Your bequest can symbolize a lasting memorial for you or anyone else you may wish to honour.

Giving a life insurance policy is one way to maximize your contribution to the SFCHF. It enables you to make a significant, lasting gift with minimal outlay of current savings or income. Donors often struggle between their desires to achieve philanthropic goals and their need to preserve their estates for their families. A gift of life insurance can eliminate this conflict.

You can purchase a new Policy
If you name the SFCHF as the irrevocable owner and beneficiary, you will receive an income tax receipt yearly for the full amount of the premiums paid. With increasing longevity, older persons can now purchase insurance at more affordable rates than were possible in the past. Retired individuals who have some discretionary income can support the SFCHF without depleting their financial reserves or reducing the projected inheritances of family members.

You can donate an existing policy

If you donate an existing policy that you no longer need, and name the SFCHF as the irrevocable owner and beneficiary, you will receive a tax receipt for the net cash surrender value (less any outstanding policy loans) and any subsequent premiums paid.

You can make the SFCHF the beneficiary of a new or existing policy
Amendments in the 2000 Federal Budget provide that a charitable donation tax credit will be available when a donor designates that the death benefit proceeds of their policy be paid directly to a charity. Your estate will receive a tax credit for the proceeds of the policy when the gift is realized. This tax credit can be applied to up 100% of your net income in the year of death and the year prior.

You can name the SFCHF the beneficiary on your individual or group life insurance
Since you will not be able to change the ownership, you would make the SFCHF the beneficiary of the policy. As above, a donation tax credit will be available when the death benefit proceeds from the policy are paid directly to the SFCHF.

You may want to consider wealth replacement insurance
If making a large charitable donation is important to you, wealth replacement insurance is not complicated and it could allow you to make a large charitable gift now without affecting the legacy you want to leave your children. When you make your donation to the SFCHF, you receive a tax receipt for the amount you donated or the Fair Market Value if you donated other assets, such as securities, art or real estate. The next step is to purchase a life insurance policy from an insurance company with a face value equal to the amount you donated. You name your heirs as beneficiaries, and they receive the tax-free proceeds from the policy upon your death in lieu of the donation you made to charity. The tax-free proceeds are paid to your heirs in cash. Depending on your age and health, you might be able to pay off the policy premiums with the tax savings resulting from your charitable gift.

The Benefits to You

• A gift of life insurance allows you to make a larger donation to the SFCHF than you would have thought you could afford, at a relatively low cost.
• It does not reduce the value of your estate for your heirs.
• Life insurance can provide an annual tax credit or a tax credit in the year of death. How you structure your gift will depend on where you have the greatest need for tax relief.
• You can plan, arrange and announce the gift yourself and you will know that it will occur just as planned. Life insurance is not a matter of public record, allowing you to remain anonymous.

A Charitable Gift Annuity allows you to make a planned gift while at the same time receiving a guaranteed, predetermined income for life from that gift. It is an ideal option for donors over the age of 70 that have already planned a gift to the SFCHF but may be concerned with depleting the capital that generates their income.

The Benefits to You

• Annuities are high quality, guaranteed investments that provide regular payments to you and/or your spouse.
• You may choose the payment structure that suits you ~ monthly, quarterly or annually ~ and your payments can be deposited directly into your bank account.
• Each payment is a blend of capital and interest. The capital payment portion is non-taxable. The blend is structured so that you pay very little tax.
• A charitable gift annuity combined with the charitable tax receipt, can provide you with a higher return than is available on similar investments.
• An annuity enables you to give a lump sum to the SFCHF for immediate use. The annuity insurer provides us with a recalculation of payments based on actuarial tables. Canada Revenue Agency considers the difference as a charitable donation.

A Charitable Remainder Trust is a way of giving assets during your lifetime while providing you with the use of the gift for the remainder of your life. You may choose a charitable remainder trust because you now have an asset that you would eventually like to give, but you need the income it now provides. A Charitable Remainder Trust for the SFCHF can be established by contributing cash, bonds, stock securities, mutual funds or real estate to the trust.

The Benefits to You

• Your gift is not subject to probate fees and other estate costs. Trust assets are not considered part of your estate and are not subject to the cost and delay of probate.
• Your trust ensures privacy. By transferring assets to a trust, your decision is private.

A Residual Interest gift is a method of giving in which property is deeded to the SFCHF. However, you retain the use of the property for the rest of your life or a term of years. For example, you might give a residual interest in your cottage, but continue to use and enjoy it over your lifetime.
These types of gifts are usually given by those who plan to give the property through a will bequest to the SFCHF but would like to reduce income tax now, without any changes in living arrangements.

The Benefits to You

• You make a significant contribution to a cause that you care about and support without loss of enjoyment of your asset.
• You receive a charitable tax receipt, thereby decreasing after tax income.
• Your asset is removed from your estate thereby decreasing probate fees upon death.
• You give the property to the SFCHF and retain the use of it for life.
• The property is appraised and the value determined.
• You are entitled to a tax receipt for the present value of the residual interest.

Stripped bonds are an investment vehicle derived from an underlying government or other blue chip bond. An investment dealer purchases the underlying bond, and separates (strips) it into component parts, principal residue and individual interest coupons. Each component (strip) can be valued using a present value calculation. The calculation takes into consideration the current interest rates and the time to maturity or payment date.

The Benefits to You

• You become fully eligible for charitable tax credits.
• You are able to make a gift at a fraction of the ultimate value of the bond.

Gifts of Real Estate include principal residences, farms, land and commercial property. Gifts of real estate are given by donors who wish to simplify their estates or give their bequest to the SFCHF during their lifetimes. They are not in need of the dollar proceeds of the sale, but rather are looking at ways to reduce income tax now.

The Benefits to You

• You receive a charitable tax receipt thereby increasing your after tax income.
• The property must be appraised by an independent appraiser.
• After the fair market value is determined; a receipt is given for the fair market value as of the day on which the transfer takes place.