Types of Legacy gifts:
💼 1. Bequest in a Will
- Most common legacy gift.
- The donor names the charity as a beneficiary in their will, which can be:
- A specific amount of money (e.g., $10,000)
- A percentage of the estate
- A residue gift (what’s left after other obligations are met)
- A specific asset (e.g., property, securities)
Benefits:
- Simple to arrange
- Can be modified at any time
- Charitable donation receipt offsets estate taxes
🛡️ 2. Life Insurance Policy
- Donor names the charity as a beneficiary or owner of a life insurance policy.
Two options:
- Charity as Beneficiary Only: Estate gets the tax receipt when the donor passes.
- Charity as Owner and Beneficiary: Donor gets annual tax receipts for premiums paid.
Benefits:
- Can leave a significant gift with relatively low cost
- Doesn't reduce assets left to family if done strategically
📈 3. RRSPs and RRIFs
- Registered Retirement Savings Plans (RRSPs) or Registered Retirement Income Funds (RRIFs) can name a charity as a direct beneficiary.
Benefits:
- Avoids probate
- Donation receipt can offset taxes owed on the registered funds
💳 4. Donor-Advised Funds (DAFs)
- A donor sets up a fund through a public foundation (e.g., a community foundation or charitable financial institution) and recommends grants during their lifetime and/or after death.
Benefits:
- Flexible giving tool
- Can involve family in decision-making
🏠 5. Gifts of Real Estate or Property
- Property such as land, homes, or vacation cottages can be donated during life (with right of residence) or in a will.
Benefits:
- Significant gift without using cash
- Tax advantages for fair market value at time of transfer
💹 6. Gifts of Publicly Traded Securities
- Donating appreciated stocks or mutual funds directly to a charity avoids capital gains tax.
Benefits:
- Immediate or estate gift
- Full fair market value is eligible for a tax receipt
- No capital gains tax payable
📝 7. Charitable Remainder Trusts
- The donor retains income from the trust for life, with the remainder going to the charity after death.
Benefits:
- Income during lifetime
- Immediate tax receipt for the present value of the charitable gift
🏛️ 8. Endowments
- The donor sets up an endowment fund where only the income is spent, allowing the principal to remain intact forever.
Benefits:
- Perpetual legacy
- Can be named in honour of the donor or a loved one
