Gift Planning

It is more blessed to give than receive. Acts 20:35

A planned gift is a gift deferred—a way of expressing your wishes now about how your resources are to be used later. A planned gift is a commitment made to protect those you love—and an opportunity to benefit the Church for generations to come.

Gift Planning is not separate from Christian stewardship, but is rather an important part of it. Planned giving offers ways—over and above our regular support of the church’s on-going work—to share God’s gifts with others, and to grow spiritually as we live out our vocations and ministries within the mission of the church.

For where your treasure is, there your heart will be also. Matthew 6:21

There are many varieties of planned gifts. A gift plan that works for one individual or family may not work for another, because the make-up of estates or accumulated assets is as different as the households themselves. The good news is that federal tax law provides the means for donors to direct the taxable portion of their estates to benefit the community and the Church.
Some gift planning vehicles will benefit the Church now, giving an immediate tax credit. Others will benefit the Church later, with a tax credit accruing to the donor’s estate.

Some of the more important gift planning vehicles:

Bequest in your will
A gift made in your will—the most common form of deferred gift—provides tax relief to your estate, while ensuring that your commitment to the life of the church lasts beyond your lifetime. Care should be taken to ensure that the form and purpose of your gift is clear. A Gift Planning Officer can advise on the wording of a bequest. A lawyer’s services are recommended for the making of a will.

Life Insurance
Life Insurance often allows you to make a larger gift than you might otherwise be able to make. You can assign a paid-up policy for which you have no further need, or obtain a new policy, naming the church as beneficiary.
By assigning ownership to the church, you receive tax credit for the cash surrender value and all future premiums.
Naming the church as your beneficiary will give tax benefits to your estate.

Gift Annuity
Gift and “Gift Plus” Annuities are available through the General Synod. They provide guaranteed income during your lifetime and a gift of money to the church at your death. In the case of “Gift Plus” Annuities, this gift is immediate. A portion of the annual income will be tax-free, depending on your situation at the time of the gift.
Annuities are especially attractive to people of retirement age and older.

Trusts and Gifts of Residual Interest
Individuals with substantial assets may wish to donate a portion of them to the church, while retaining use during their lifetimes. Besides cash and investment holdings, these assets may include property such as real estate or art.
Gift arrangements of this type require very careful planning, with professional assistance.

Gift of Appreciated Securities
People who have made significant capital gains from investments are often faced with large tax burdens when they sell them. By donating securities to the church, your charitable objectives can be addressed and your tax burden reduced.
Recent changes in tax law have made this type of gift very attractive to donors.

God has abundantly blessed every one of us. Our calling as God’s people is to use God’s gifts for the building up of people and for the benefit of God’s world.

Planned gifts are an important way to share our gifts, helping to ensure the future of our church and its mission.
There are many new and creative ways to give, providing opportunity for everyone to leave a legacy through a planned gift. Tax law provides additional incentives for such giving.

Whether you choose to make a planned gift now or later, we encourage you to learn more about planned giving. By returning to God what is God’s and contributing to God’s work in the world, we grow spiritually while helping others.
Will my gift be used as I intend?

Your gift must be used as you wish. However, donor’s intentions and the church’s needs do not always agree. To ensure that the church will be able to honour your wishes, please discuss your plans with your Rector, the Diocesan Stewardship Officer or the Regional Gift Planning Consultant.

1) If a gift is made by way of a bequest (a will), the gift is deemed to have been made in the year of death and can be carried backward for one year. A donation can be made which equals 100% of the net income in the year of death and the year immediately preceding.
The 2000 Federal Budget extended the charitable tax credit to donations of RRIF, RRSP and life insurance proceeds that are made as a consequence of direct beneficiary designations - now the donor will be on the same footing as if the donation had been made in a will.

2) If a gift is made during a donor's lifetime then that donor is eligible for a non-refundable federal tax credit of 17% or the first $200 donated and 29% of any donation in excess of $200 to a maximum of 75% of the donor's net income.

3) If a donation is made that exceeds 75% of a donor's net income then the excess donation can be carried forward for the next five years.

4) If a donation is not cash but some form of property (i.e. land, stock) then when the donation is made, the donor is deemed to have disposed of the property at its fair market value.

5) However, where the donation is made to a registered charity the donor is entitled to select a transfer price for tax purposes that is between the adjusted cost base and the fair market value of the property.

6) A donation of publicly-listed securities, units of mutual fund trusts and units of mutual fund corporations also provide tax savings because only one-third of the capital gain needs to be included in the donor's income (usually the usual two-thirds of the capital gain would be included in the donor's income).

7) A donation of land, including a covenant or easement, may in certain circumstances be eligible for a tax credit for the land's full fair market value without regard for the normal net income limitation if the donation of land meets two requirements:
(a) the donation must be to a registered charity acknowledged by the Minister of the Environment as a charity with the primary purpose of the conservation and protection of Canada's environmental heritage, and
(b) the donation of land must be certified by the Minister of the Environment to be ecologically sensitive land, important to the preservation of Canada's environmental heritage.

8) An official receipt containing the charity's registration number is required if a credit is to be allowed.

9) Either spouse may claim all or a portion of the contributions made by either one of them.

1) Payments for membership and tuition fees where the donor receives a benefit
2) Amounts paid in 'loose' collections where a donor cannot be identified
3) The value of services rendered
4) Donations of merchandise where the cost has been charged as a business expense
5) Donations of old clothes, furniture etc.
6) Amounts paid for tickets for fund-raising activities (except in restricted circumstances)
7) Amounts paid to purchase lottery tickets, even where the lottery proceeds are given to charity.

Who will decide for you? Will it be the Courts or......

Most times people ensure that they have a will in place but neglect to consider the possibility of being unable to manage their personal affairs while they are still alive. They could be temporarily or permanently incapacitated due to illness or an accident. A power of attorney can be written to manage an individual’s affair in such a situation. This would however need to be done when the individual is mentally capable.

A power of attorney is a legal document. There are two different types; if it deals with personal and health care it is referred to as power of attorney for personal care. If it instead, deals with financial matters, it is referred to as power of attorney for property.

Power of attorney for personal care - Depending on the province, it may also be known as a living will, a mandate or a health-care directive. Creating a power of attorney for personal care allows you to express your wishes as to how you should be treated in the event you become incapacitated. It can be used to outline your wishes regarding life support, pain management in the event of terminal illness etc. Without it, delays in medical and life saving emergency treatments may be experienced; and the courts may have the final decision as to the type of care that should be administered.

Power of attorney for property - With its creation, you empower someone to make legal and financial decision on your behalf. It may be temporary or indefinite, it can also be limited to specific activities or assets - a limited power of attorney - or it can provide wide-ranging control over your financial affairs - a general power of attorney. It can be effective upon signing or it can be conditional to a specified event or circumstances.

By creating an enduring power of attorney, your affairs can continue to be managed even if you are mentally incapacitated, without the intervention or supervisions of the courts. A "normal" power of attorney would be invalid if you become mentally incapacitated, which would be the time that it is most needed! Most if not all provinces have introduced enduring power of attorney legislation. In all cases the authority provided by this document ends with death.

Please note - This is not legal advice. Like your will, your power of attorney should be prepared with professional advice - consider having both done at the same time.

"Remember that when you leave this Earth, you can take with you nothing that you have received - only what you have been given: a full heart enriched by honest service, love, sacrifice, and courage."
St. Francis of Assisi

How do we support God's work?
We give at different times in our lives, and in different ways: We give spontaneously because there has been an earthquake in Nicaragua, many lives have been lost and those left behind are homeless and hungry: an emergency.
We give on a regular basis to Sunday collections, either using cash, cheques, visa, or, in a growing number of parishes, pre-authorized giving which debits regular amounts from your account to the parish account.
Over and above this, we have in this diocese special programs which receive gifts such as Children’s & Youth Camps, Christian Education, University Chaplaincy, Queen’s College, Outreach Ministry, Social Justice, and Evangelism.
From time to time, your own parish will need special one-time assistance to fix the organ, the roof, the bell tower, or even build a new parish hall.
However, how many of us think longer-term about our parishes and the wonderful work done there, and how this can be funded in the future?
Longer term giving. This can be done in several ways, either during our life time or after we die. How we give such a gift over to the church is often referred to as a planned or deferred gift.
Why make a planned gift?
* To provide long-term assistance for a church program which has been important to you
* To magnify your giving to the church
* To increase your income
* To reduce your taxes
These gifts can take many shapes - bequests under a Will, a life insurance policy, a life income trust, a gift of stock