All about Legacy Giving (Planning) by Laura O’Neill
What Is Legacy Giving?
"Legacy giving" typically refers to the practice of making a charitable donation or leaving a gift in your will or estate plan to support a cause or organization that is important to you. It's a way for individuals to leave a lasting impact and contribute to the well-being of future generations. Legacy giving can take various forms, such as bequests, charitable trusts, or gifts of life insurance.
Legacy giving if often referred toby different names.
Planned Giving: This is a broader term that encompasses any major gift made in a donor's lifetime or as part of their overall financial or estate planning.
Bequests: This term specifically refers to gifts made through a will. Donors include a provision in their will specifying how much money or which assets they want to leave to a particular organization.
Estate Planning: While not specific to charitable giving, estate planning involves arranging for the disposal of an estate, and this can include making provisions for charitable contributions.
Testamentary Gift: This is a gift outlined in a person's will, designating a portion of their estate to go to a particular charity.
Deferred Giving: This term emphasizes that the gift is deferred until a future date, often occurring after the donor's death.
Charitable Bequest: Similar to bequests, this term specifically denotes a gift made to a charitable organization through a will.
Gifts in Kind: While not always associated with legacy giving, it refers to non-monetary donations, such as real estate, art, or other assets, that can be included in a will.
These terms are often used interchangeably, and the choice of language can depend on the specific legal and financial context or the preferences of the organization and the donor. If you are considering making a legacy gift or exploring options for charitable giving, it's recommended to consult with legal and financial advisors who can provide guidance tailored to your situation.
By including a charitable organization in your estate planning, you can provide ongoing support for the causes you care about, even after you're no longer present. Many nonprofits and charitable institutions rely on legacy gifts to fund their programs and initiatives.
Does My ‘Legacy’ Charitable Contribution Qualify For A Tax Receipt?
In Canada, individuals who make charitable contributions through legacy giving, such as bequests or gifts in a will, may be eligible for tax benefits. The tax treatment of these contributions is governed by the Canada Revenue Agency (CRA). Here are some key points:
Tax Deductions for Bequests: The value of a bequest made to a registered charity in your will is deducted from the value of your estate when calculating the federal estate taxes. This can help reduce the overall tax liability of your estate.
Tax Credits for Charitable Gifts: In addition to the estate tax benefits, there may also be tax credits available for charitable contributions made during your lifetime. This includes charitable gifts made through other means, such as charitable remainder trusts or gifts of life insurance.
Designation as a Graduated Rate Estate (GRE): In certain cases, an estate that includes a charitable bequest may qualify as a Graduated Rate Estate, allowing it to benefit from the lower tax rates applicable to estates in their first 36 months.
Receipts for Tax Purposes: When you make a charitable contribution, including a legacy gift, the charitable organization will issue a tax receipt. This receipt is essential for claiming the tax benefits associated with your donation.
It's important to note that tax laws and regulations can change, and the specific details can depend on your individual circumstances. Therefore, it's highly advisable to consult with a qualified tax professional or financial advisor who is familiar with the current tax laws in Canada and can provide personalized advice based on your situation. They can guide you on how to maximize the tax benefits associated with your legacy giving.
I Don’t Have A Financial Advisor, Where Can I Find One?
Finding a financial advisor in Canada involves considering various sources and conducting thorough research. Here are some ways to find a financial advisor in Canada:
Referrals: Ask friends, family members, or colleagues for recommendations. Personal referrals can provide valuable insights into the advisor's competence and reliability.
Professional Associations: Look for financial advisors who are members of reputable professional organizations in Canada. For example, you might consider advisors who are Certified Financial Planners (CFP) or members of the Financial Planning Standards Council (FPSC).
IIROC or MFDA Registration: In Canada, financial advisors who deal with securities are typically registered with the Investment Industry Regulatory Organization of Canada (IIROC) or the Mutual Fund Dealers Association of Canada (MFDA). You can check their registration status on the IIROC or MFDA websites.
IIROC: IIROC AdvisorReport
MFDA: MFDA Investor Protection Corporation
Online Platforms: There are online platforms that connect individuals with financial advisors in Canada. Some platforms allow you to search for advisors based on your preferences and location.
Financial Institutions: Many banks and credit unions in Canada have their own teams of financial advisors. You can inquire about their services and expertise.
Community Resources: Check with local community resources, such as community centers, professional networking groups, or chambers of commerce, for recommendations on financial advisors in your area.
Robo-Advisors: If you're comfortable with a more automated approach to investing, robo-advisors are platforms that provide automated, algorithm-driven financial planning services with minimal human intervention.
And lastly, we at The Whole Dyslexic Society have several families in our community that are financial advisors and would be happy to serve you. Contact us at info@thewds.org.
When selecting a financial advisor, consider factors such as their qualifications, experience, areas of expertise, fee structure, and whether they have any potential conflicts of interest. It's advisable to have initial meetings or consultations with potential advisors to discuss your financial goals and assess whether their approach aligns with your needs. Additionally, make sure the advisor adheres to regulatory standards and has the necessary licenses and certifications.
Does The Whole Dyslexic Society Qualify To Receive Legacy Donations?
Yes! The Whole Dyslexic Society is a federally registered charity. Our registered charity number is: 852190933RR000.
If you or someone you know would like to include the Whole Dyslexic Society in legacy planning please contact your financial advisor. If you don’t have a financial advisor we may be able to refer you to one. Please contact us at info@thewds.org.
We are a busy charity with a wide reach, nationally and internationally.
Our Mission: "To be an organization which offers a coordinated and central approach in addressing the needs of the dyslexic individual, their families and their community, while ensuring a safe place for accelerated learning, healing, education, social interaction and support of individual growth and development."
We have 4 objectives: Public Outreach, Prevention, Fundraising (Bursary Programs), & Community. To read more about each of our objectives please visit our page HERE.
To read more on the many ways you can contribute please visit our Giving Guide HERE.
Thank you for your Support!
info@thewds.org
