Planned Giving
The following is provided as a simple matter of information
in the case that a member may be interested in Planned Giving Donation,
and not specifically as a solicitation of such a donation from the membership.
The Iraqi Jewish Association of Ontario continually searches for innovative and creative ways to fund our programs and future capital costs. Planned giving is the thoughtful process of arranging a gift to a charitable organization such as the IJAO, while taking into account your personal and philanthropic goals and values.
There are a variety of opportunities for donors to match their personal interests and giving ability with specific Association needs; there may be existing or new programs that you are interested in supporting. There are also numerous ways in which you can make your gift, many of which have significantly positive tax implications.
Please Seek Expert Advice: the IJAO strongly recommends that you seek professional advice to ensure your financial goals are considered, your tax situation reviewed, and that your planned gift is tailored to your circumstances.
The IJAO recommends that you consult your lawyer or estate planner regarding the specific wording and creation of a charitable gift annuity or other type of planned gift.
The following are some common kinds of Planned Giving Gifts.
Gifts of Publicly Traded Securities
One of the most effective methods which reward all parties is the donation of publicly traded securities. The IJAO can accept gifts of publicly traded securities in the form of stocks, bonds, bills and mutual funds.
Such a gift benefits both the member and the Association.
The member does not pay a capital gain on the security when tit is donated it to the Association.
Donations of securities results in a lower tax cost than selling the securities and then donating the cash.
You will receive a tax receipt for the fair market value of your gift.
The gifted security is sold as quickly as possible and the proceeds of the sale can be targeted to a specific IJAO fund or project if desired, or to the Future Fund. We have Board members that can work with you to provide specific details on how to transfer your securities to the IJAO.
Giving through Gift Annuities
A gift annuity benefits both you and the Association. Gift annuities allow you to make a charitable donation to the IJAO while receiving a guaranteed income for life, often at a higher rate of return than a GIC and with greatly reduced taxes! Aside from a secure and steady monthly income for life; you receive immediate tax receipts for the gift portion of your annuity. It is guaranteed, it is secure and it is worry free. There is no portfolio to follow nor stock market to watch. Gift annuities can be customized to your personal financial situation, allowing you to create an annuity that suits your needs.
Gifts of Life Insurance
For relatively small donations a large endowment can be left to the community via a life insurance program. In many cases, giving through life insurance enables you to give much more than would be possible otherwise-often with significant tax savings and estate preservation advantages.
Gifts of life insurance can take several forms:
Existing, Paid-Up Policy. If you have an existing, paid-up policy that is no longer needed for your family or business, cashing it in can have negative tax consequences. However, you can donate it by designating the Iraqi Jewish Association of Ontario as the owner and beneficiary of the policy. You will receive a tax receipt for the cash surrender value of the policy, including accumulated dividends, earnings and adjustments.
Existing Policy Requiring Continuing Premiums. By naming the Iraqi Jewish Association of Ontario as the owner and beneficiary of an in-force policy, you will receive a tax receipt for its adjusted cash surrender value at the date of donation, and tax receipts for any additional premium payments made after the policy is assigned.
New Policy. When you buy a new policy and name the Iraqi Jewish Association of Ontario as the beneficiary, you will receive tax receipts for the full amount of the annual premiums you pay. These policies can be designed to be self-supporting after a few years, and no further premium payments are necessary.
Retain ownership of a policy but name the Iraqi Jewish Association of Ontario as beneficiary. Your estate receives a tax receipt for the amount of the donation that can be claimed against 100% of the estate’s income on the year of death. Any excess may be carried back one year.
The Association can work with you and your insurance professional to formulate a plan that is best suited to your needs and financial situation.
Charitable Trusts
If you are considering a future gift to the IJAO but would like to receive the tax benefits today, a charitable trust arrangement may be the appropriate gift. Like annuities, establishing a remainder trust or a gift of a residual interest can ensure income from or continued entitlement to the use of a property during your lifetime while providing immediate tax relief.
Depending on your specific circumstances and wishes, you may consider one of two charitable trust arrangements:
Charitable Remainder Trust. With a donation funded from, for example, cash, securities or real estate, you may create a charitable remainder trust by transferring an asset to a trust. You will receive the income generated by the trust for life or a term of years, while the Association will receive the ‘remainder’ interest of the trust in the future.
Charitable Residual Interest Trust. A gift of residual interest allows you to donate an asset (such as your home, a work of art or other, similar property of value) to the Association but retain the right to use the property during your lifetime, or the lifetime of a family member.
Donations of remainder and residual interest are both irrevocable gifts and, therefore, are eligible for an immediate tax receipt based on the present value of the property and other factors.
5. Gifts of Pension Assets
Gifts of Pension Assets are unique giving options that reward you, the donor, and the IJAO. Retirement funds can make an excellent charitable gift, as the tax credit will normally offset the tax on the distribution. You can choose to donate funds from your RRSP’s, RRIF’s or Canada Pension assets. This form of giving has the benefit of avoiding probate fees and withholding taxes, and allows the gift to bypass the estate and go directly to the Association.
If you are providing for your retirement needs through investments such as RRSP’s you may choose to use funds received from Canada Pension to make a charitable donation. When you receive your payment, simply send the IJAO a cheque for the amount or a portion of the distribution you received. You will receive a tax receipt for the value of your cash gift.
6. Charitable Bequests
A charitable bequest, naming the Iraqi Jewish Association of Ontario in your will, is one of the simplest ways to create a legacy of support for the Association. A charitable bequest can be a gift of cash, publicly listed securities, tangible property (such as real estate, art books and jewellery) or a portion of your estate.
Charitable bequests may be unrestricted or designated for a specific purpose. Charitable bequests are tax effective. The Association issues a tax receipt for the amount of your gift that can be claimed against 100% of your income in the year of death. Any excess may be carried back one year. If you choose to give publicly listed securities which have appreciated in value, you will not be taxed on the capital gain and this reduces the taxes on your estate.
There are several flexible ways to make your gift that will best address your personal needs and circumstances:
A specific bequest is a gift of a sum of money or a gift of property such as real estate, securities, or art.
A residual bequest is a gift from the residue of an estate after the payment of debts and funeral expenses, taxes and specific bequests. You may choose to leave all or a portion of the residue as a gift to the Association.
A residual bequest subject to a life interest is a gift where the Association receives all or a portion of your estate following the death of certain other beneficiaries who, as prescribed in you will, have the use of estate assets for their lifetime.
A contingent bequest takes effect only if the primary intention cannot be met (e.g. a gift to the Association if one of your beneficiaries predeceases you).
If you are considering a gift to the IJAO, we strongly encourage you to seek professional financial and legal advice. Everyone’s circumstances and tax responsibilities are different. Talk to your lawyer, accountant or financial planner to create the giving strategy best suited to your philanthropic and financial needs and circumstances. We also suggest that you discuss your gift with a Board member of the Association. Professional advisors we can work with you to draft documents outlining the specific details of your gift. All requests for anonymity are absolutely respected.
However you choose to contribute, you will be supporting the IJAO, your community, and yourself.