Laura O'Neill 11/23/23 Laura O'Neill 11/23/23

All about Legacy Giving (Planning) by Laura O’Neill

"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.

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

Laura O'Neill 11/23/23 Laura O'Neill 11/23/23

All about Donor Advised Funds (DAFs) by Laura O’Neill

From the perspective of a donor, a donor-advised fund (DAF) offers a strategic and convenient approach to philanthropy.

What Is A Donor-Advised Fund Also Known As ‘DAFs’?

From the perspective of a donor, a donor-advised fund (DAF) offers a strategic and convenient approach to philanthropy.

Here's how it looks:

Strategic Giving: Donors can contribute assets, such as cash or securities, to a donor-advised fund, allowing for a thoughtful and strategic approach to charitable giving.
Immediate Tax Deduction: One of the immediate benefits is the ability to receive a tax deduction for the full amount of the contribution in the year it is made. This encourages and facilitates a commitment to supporting charitable causes.
Investment Opportunities: The contributed assets are typically invested, providing an opportunity for potential tax-free growth. This allows donors to maximize the impact of their contributions over time. It's worth mentioning that while donors receive a tax deduction when they contribute to a donor-advised fund, there's no legal obligation to distribute the funds immediately.
Flexibility in Grantmaking: Donors, or individuals appointed by the donors, can recommend grants to qualified charitable organizations over time. This flexibility enables donors to carefully consider and support the causes that align with their values.
Streamlined Giving: Donor-advised funds are often managed by public charities or financial institutions, streamlining the administrative aspects of charitable giving. This allows donors to focus more on the causes they care about rather than the logistics of managing individual donations. They are popular because they provide a convenient and efficient way for individuals to manage their charitable giving, especially for those who may not want to establish and manage a private foundation.
Family Involvement: Donors often involve their families in the philanthropic process, fostering a culture of giving and social responsibility. DAFs provide a structured way for multiple generations to participate in charitable activities.
Privacy and Anonymity: Some DAFs offer the option for donors to give anonymously, providing privacy in their philanthropic endeavors if desired.
Impactful Legacy: Donors can use DAFs to plan and create a lasting impact, establishing a legacy of giving that extends beyond their lifetime.

In essence, donor-advised funds empower donors to be intentional, strategic, and impactful in their charitable contributions, while also providing financial benefits through tax deductions and investment opportunities. The flexibility and streamlined nature of DAFs make them an attractive tool for donors seeking to make a difference in their communities and beyond.

Who Qualifies To Receive A DAF And How Do I Know They Are In Compliance?

In Canada, charitable organizations must be registered with the Canada Revenue Agency (CRA) to be eligible to receive donations, including those from donor-advised funds. Here are some key points:

Registered Charities: To be eligible to receive donations from a DAF in Canada, an organization must be a registered charity with the CRA. The CRA has specific criteria that organizations must meet to obtain and maintain charitable status.

Eligible Charitable Purposes: Charitable organizations in Canada must operate exclusively for charitable purposes, such as relief of poverty, advancement of education, advancement of religion, and other purposes beneficial to the community.
Qualified Donees: The CRA maintains a list of "qualified donees," which includes registered charities, certain Canadian amateur athletic associations, national arts service organizations, and more. Donations from DAFs in Canada are typically directed to qualified donees.
Compliance with Regulations: To maintain their charitable status, organizations must comply with the regulations set by the CRA, including filing annual information returns and using their resources for charitable activities.

It's essential for donors and the sponsoring organizations of DAFs in Canada to ensure that their grant recommendations align with the CRA's regulations and guidelines. Working with legal and tax professionals who are knowledgeable about Canadian charitable giving regulations can help ensure compliance and maximize the impact of charitable donations.

What Is A Sponsoring Organization For DAF’s?

Public Charities: Many DAFs are established and managed by public charities, which are tax-exempt organizations that operate for the public benefit. Examples include community foundations, religious organizations, and other charitable entities. These public charities often have a broader mission beyond managing donor-advised funds and may be involved in various philanthropic activities within a community or a specific sector.
Financial Institutions: Some DAFs are offered and managed by financial institutions, such as banks, investment firms, or brokerage firms. These institutions provide donors with DAF services as part of their broader suite of financial offerings. Donors who use DAFs through financial institutions can have their DAF accounts integrated with their overall financial portfolios.
Single-Issue Organizations: In some cases, a single-issue organization, like a university or a hospital, may establish a DAF to manage and distribute funds related to their specific mission. While less common, these organizations may use DAFs as a tool for fundraising and donor engagement.

The management of DAFs involves handling the administrative tasks related to contributions, investments, and grant recommendations. This includes processing donor contributions, investing the contributed assets for potential growth, and executing grants to qualified charitable organizations based on the recommendations of the donors.

It's important for donors to choose a reputable and well-established sponsoring organization for their DAF, considering factors such as fees, investment options, and the organization's track record in efficiently processing grants and supporting philanthropic goals.

Does The Whole Dyslexic Society Qualify To Receive DAF’s?