Gift annuities
There are different methods of a gift annuity to suit your financial needs while also supporting the work of the Canadian Cancer Society. The easiest way is to make a donation to the Society – funds that we will then secure with a life insurance company to pay you guaranteed income for life.
Charitable gift annuities can be especially appealing to those aged 70 and older, who are more concerned about financial security than income growth. Benefits include receiving regular, guaranteed payments for life that can be largely or entirely tax-free. Furthermore, the income from your annuity will likely be better than interest earned from GICs or bonds. You will also receive a tax receipt for your separate charitable gift.
Charitable remainder trust
A charitable remainder trust is an effective way to secure both income for life and piece of mind in knowing that, after your lifetime, the remaining property in the trust will support the Canadian Cancer Society.
Entering into a charitable remainder trust agreement simply means transferring property – cash, securities or real estate, for example – to a trustee and naming the Society as the remainder beneficiary. The trustee pays you, or a beneficiary, a regular income for life or for a specified term. When the trust terminates, the trustee pays out the remaining assets to the Society.
You will receive an immediate tax receipt for your contribution upon entering into a charitable remainder trust. Other benefits include securing income for life for either yourself or other beneficiaries and having a professionally-managed trust.
RRSPs and RRIFs
A gift of registered retirement or investment funds allows you to make a significant donation to the Society while arranging important tax savings for your estate.
When you pass away without a surviving spouse, all your registered funds will be added to your taxable income for that year – an increase that may bump you to the highest federal/provincial combined marginal rate, which in Alberta is nearly 40 per cent. In other words, nearly 40 per cent may be lost to tax payable on your RRSP or RRIF.
By giving a gift of registered funds to the Society – one way to do this is to name us as part or sole beneficiary on your registered fund – you will make a generous investment in the fight against cancer while ensuring your estate receives a tax credit that is roughly equal to the tax liability on the gifted amount.
Transfer of stock
You can avoid capital gains tax on appreciated publicly-listed securities by transferring your stock directly to the Canadian Cancer Society.
Furthermore, you will receive a charitable receipt for the full market value of the stock to further reduce your taxes when you make a direct transfer to us – as opposed to cashing it in to send a donation.
To simplify this process, we’ve developed a broker authorization form for your convenience:
Broker authorization form (PDF)
Land
When you transfer land titles or other interests to the Society, you will receive a charitable tax receipt for the fair market value based on the current appraisal for the transfer date. There are many benefits associated with this type of planned gift. You will:
- reduce your capital gains tax by donating the land directly to the Society;
- deduct the charitable tax receipt amount from your income for current or subsequent years;
- no longer need to pay management fees, maintenance, insurance, property taxes and other ongoing costs; and
- know your charitable gift is helping the Society continue to make life-saving progress in the fight against cancer.
Land leases and mineral rights
Alternatively, you can also choose to maintain land ownership while gifting the lease and/or mineral rights income to the Society without actually gifting the land itself. This planned gift gives the Society consistent funding that will be used immediately to fund cancer research and deliver support programs for people living with cancer.
Residual interest gift
Make a gift of property while retaining interest. You will get a charitable tax receipt to reduce taxes, keep possession of the property, reduce the value of your estate, save probate and other costs, and simplify the estate process for your executors.
Bequest in a willA will is the easiest and most effective means to ensure you fully provide for your family and leave a legacy that will make a difference in the fight against cancer. Here are three examples of charitable bequests:
- Specific bequest – name a specific amount to the Society.
- Residual bequest – instruct that the Society will receive a percentage or the entire remainder of your estate residue. The residue is what is left of your estate after taxes, debts, legal obligations, testamentary fees and payment of specific gifts and bequests.
- Contingent bequest – leave all or a portion of your estate to the Society only if your chosen beneficiaries predecease you, for example.
A bequest allows you to make a long-term commitment without affecting your current standard of living. It also ensures your estate will be able to claim tax credits for the gift against taxable income in the year of death and, in some cases, in the previous year as well.
Remember, when planning your estate, the best place to start is with your will. Everyone should have a legal will so their intentions are clearly understood upon death. Without a will, the courts will decide how your estate will be distributed according to the law. Ask us for our complimentary estate and will planning guide to help you get started.
Life insurance
A gift of life insurance allows you to leave a significant legacy to the Canadian Cancer Society at relatively little cost. This gift has very little impact on your estate, leaving it intact for your heirs. There are four ways to give a gift of life insurance:
- Purchase a new policy and name the Society as the sole owner and beneficiary. You pay the premiums and receive income tax credits for the full amount of the paid annual premiums.
- Purchase a new policy, keep ownership in your name, and name the Society as the beneficiary. Upon your passing, your estate receives a tax credit for the insurance proceeds. You do not receive tax credits for annual premiums in this case.
- Donate an existing policy you no longer need by transferring ownership to the Society and naming the Society as the beneficiary. Tax treatment is the same as the first point listed above, plus an immediate tax credit if the policy has cash value.
- Designate the Society as the sole beneficiary of an existing policy you no longer need, but you remain the owner of the policy. Tax treatment is the same as the second point above.
We understand that planning for your future and that of your family can be a daunting task. Financial and estate planning can be complex, and it’s important to be prepared with the right expertise and resources to ensure your future is protected.
A carefully-selected advisor can provide guidance to help you make the best choice according to your needs. In the following pages, we provide a step-by-step process to help you choose an advisor.
The Canadian Cancer Society, Alberta/NWT Division, is supported by its Gift Planning Advisory Cabinet (GPAC). GPAC volunteers live and work across the division, specializing in estate and will planning, life insurance, annuities, charitable remainder trusts, securities, land leases, royalty trust units, mineral rights, and prearranged funerals.
Please contact one of our GPAC volunteers for more information about making a planned gift in support of the Canadian Cancer Society:
Darcy Hulston (GPAC Chair)
Senior VP National Sales Director
Canoe Financial
Remo Cardone
Senior Vice President, Senior Investment Advisor
Cardone Wealth Management Group
TD Securities (Canada) Inc
Walter Wirch
Life and Health Insurance Advisor
Desjardins Financial Security
Jennifer Johnson, CFP
President
JBC Wealth Management Inc
Russell Scantlebury, BA
Advisor, Member, Advocis
Sun Life Financial
Pauline Terry, CFP
Financial Planner
Future Focus Financial Planners
Eric Nielsen
Wholesaler
Standard Life
Mike Skrypnek, FMA, FCSI, AIF
Director, Wealth Management Portfolio Manager
Richardson GMP Limited