Donation Methods
|
Should you have any questions regarding any of these planned gifts, please call our office at (204)831-1510. |
Methods of Planned Giving
Donation Methods
Phone Donation
Text Here...
Mail-In Donation
Text Here...
top of page
Methods of Planned Giving
"Planned Giving" very simply is donation planning. Any gift of significant size made with planning and forethought about the financial implications to the donor and their family and the benefit to the charity is a planned gift.
Types of planned gifts include the following:
Bequests
A "bequest" (a gift of cash or property made in a will) is one of the most common ways donors choose to make a gift to ALS Society of Manitoba (the Society).
Bequests to the Society fall into two general categories:
- Unrestricted Bequest: Allows the Society to use your gift where it is most needed.
- Restricted Bequest: You specify where and how your gift is to be used
top of page
The most common types of bequests are:
- General Bequest: The Society receives a specified amount of a gift, usually cash.
- Residual Bequest: The Society would receive all or a percentage of the remainder of your after other specific legacies have been fulfilled.
- Contingent Bequest: The Society would receive all or al share of the estate only the event of the prior death of other named beneficiaries.
The benefits are:
- you have an opportunity to create a living memorial in your name
- your estate is entitled to a tax credit for the final income tax return
- protection of your heirs by reducing estate tax liability
top of page
Gift of Life Insurance
Any universal or whole life policy can be a powerful instrument of charitable giving in some of the following ways:
A) Gift of a Paid-up Policy- As circumstances change in a person’s life, existing life insurance policies may no longer be needed for the original reason they were established. If you have such a policy, you may want to use it as a donation by making the Society both the owner and beneficiary.
The Benefits are:
- you can be appropriately recognized for your gift during your lifetime
- in the year of the gift, you will receive a charitable donation receipt for the policy’s current cash surrender value, less any outstanding loans you may have taken out against the policy
top of page
B) Gift on an existing policy on which premiums are still owing: If you are still paying premiums on an existing policy, you would name the Society as the owner and beneficiary and continue to pay the premiums.
The Benefits are:
- in the year of the gift, you will receive a charitable donation receipt for the present cash value of your policy
- you will, in the following years, receive a charitable donation receipt for your annual premium payments for the policy
- when the Society, as a charity, is the owner and beneficiary of the policy, the proceeds are not subject to probate
- allows you to make a significant gift to the Society and allows the Society to appropriately recognize your gift during your lifetime.
top of page
C) Gift of a New policy naming the Society as owner and beneficiary: Through a new life insurance policy, naming ALS Society of Manitoba as owner and beneficiary.
The Benefits are:
- you will receive a charitable donation receipt for the full amount of your annual premiums
- allows you to make a significant gift to the Society and allows the Society to appropriately recognize your gift during your lifetime
D) Gift of Policy naming the Society as primary beneficiary only: You can also designate ALS Society of Manitoba as the beneficiary of any type of insurance policy. When the Society is strictly the beneficiary of the policy, no charitable receipt can be issued.
The Benefits are:
- you will have the satisfaction of providing a future gift to the Society while still retaining full control of your policy
top of page
Gifts Plus Annuity
A gift plus annuity is a simple combination of two concepts:
- a charitable gift
- a guaranteed income for life referred to as an annuity
top of page
The Gift Plus Annuity plan is an arrangement under which you, the donor, transfers a certain financial sum to ALS Society of Manitoba. Acting on your behalf, and subject to a Deed of Agreement, the Society purchases a commercial annuity through a licensed insurance company.
Your guaranteed annuity payments will depend on your age, the size of your contribution and the interest rates in effect at the time of your gift.
The Benefits are:
- you receive a guaranteed income for the life of the “gift plus annuity"
- depending on your age, all or a portion of your annuity payments will be tax free
- in the year of the gift, you may possibly receive a tax credit for a portion of your contribution
top of page
Charitable Remainder Trust/ Residual Interest Gift
A charitable remainder trust is an irrevocable gift where a trust is established using cash, securities or real estate. The Society receives whatever remains in the trust after your death. During your lifetime you enjoy the income from the trust.
The Benefits are:
- in the year of the gift, you are entitled to a tax credit for the present value of the remainder interest. This is computed by an accountant or actuary using a specific formula
- you receive a net income for life or a term of years
- avoidance of tax on a portion of and possibly all capital gain
- these trusts are not subject to probate
top of page
A residual interest gift is an irrevocable gift that allows you, the donor, to receive a charitable tax credit now for a gift of property (usually a principal residence) and retain the right to reside in or keep during your lifetime.
The Benefits are:
- in the year of the gift, you are entitled to a tax credit for the present value of the residual interest
- you are able to continue using the property for life or a term of years
- avoidance of tax on a portion of, and possibly all capital gain
- the property is not subject to probate
top of page
Gifts of Publicly Listed Securities
A gift of stocks, bonds, mutual funds and other publicly traded securities made directly to ALS Society of Manitoba can significantly reduce your capital gains taxes owed on appreciated assets. Charitable gifts of shares, bonds, bills, warrants, futures and mutual fund units traded on North American and /or major International exchanges are taxed on only 25% of the capital gain as opposed to 50% should the securities be sold outright.
The Benefits are:
- you will only be taxed on 25% of the capital gains
- you will receive an income tax receipt for the full market value of the securities at the closing of the market on the date of transfer
- you may claim the tax credits to a maximum of 75% of your total annual income
- by making a gift of securities, you may claim 75% of your income plus 100% of the taxable gain in your gift.
top of page