The planned gift
The Wings of Hope is a faithful partner of the Leave a LegacyTM Québec program since it was launched in 2000, at an APFF convention. This is a Canadian Planned Giving Awareness Program being promoted by the Canadian Association of Gift Planners (CAGP) in chapters across Canada.
The goal of this program is to raise awareness about the importance of thoughtful and tax-efficient donation planning and to communicate the positive impact of these donations on the quality of life of communities here and there.
You have already done your part in supporting Wings of Hope work for many years, but you may be wondering if there is anything more you could do today, so that tomorrow, life Peruvians living in remote communities in this country continue to improve.
The term “planned gift” refers to any gift that is the subject of financial, tax or estate planning. But planning a gift is first and foremost a gesture of the heart.
Here are the different forms of planned giving:
It is a fixed and guaranteed income, totally or partially tax-free, that accompanies you throughout your life. Life annuity contracts are also known as cashless loans or annuities purchased from a charitable organization.
This is a contract between The Wings of Hope and the benefactor called the annuitant. We invite you to look at the contract model a little further down. This formula is particularly interesting for people aged 70 and over.
The benefactor pays the Wings of Hope a minimum capital of $ 5,000 and Wings of Hope pledge to pay an annual annuity at a fixed and guaranteed rate for the life of the annuitant. In some cases, the pension is transferable to another person until the death of the latter, for example to the spouse in the case of spouses.
Benefits for the benefactor
– It is a legal, safe and irrevocable placement.
– The rate is guaranteed for life.
– The benefactor will no longer have to worry about continually relocating his money because by contracting a cash loan, it is done for life.
– You will benefit each year from a tax reduction. Indeed, the law of the income tax favors this form of gift. Your pension will be partially or totally considered as a return of capital and therefore not taxable and this, according to a calculation based on life expectancy tables recognized by the CRA: Canada Revenue Agency (Interpretation Bulletin IT-111 and Technical News No. 26 of 20 December 2002). It should be emphasized that the rent is totally tax-free in the vast majority of cases.
Example of a life annuity (very approximate)
Donor : Mr 80 years old
Donor : Mrs. aged 83
Capital : $ 50 000
Rate : 8 %
Annual guaranteed lifetime annuity : 4 000 $
Life expectancy based on the 2002 life expectancy table: :
9,7 years (male) / 8,9 years (female)
Official charitable donation receipt : $ 10 000 (minimum).
The amount of the receipt comes from the difference between the capital returned to the organization and the amount of the contribution of an identical annuity in the market. The donation receipt must be equivalent to a minimum of 20% of the capital donated to the organization.
To ensure the continuity of the Wings of Hope mission, you can make a significant donation through life insurance. The organization The Wings of Hope is designated the sole owner and beneficiary. The terms and benefits are multiple.
. New life insurance policy
– For a sum insured of 10, 25, 50, 100000 $ or more.
– The insured amounts of the policy are paid immediately after the death, without administrative delay, without expenses and without tax to pay.
– Premiums are spread over seven or ten years and are eligible for tax credits.
. Existing life insurance policy
– The gift of an existing policy is eligible for a donation receipt equivalent to the cash surrender value and / or market value established by professionals in the field.
It is also possible to designate The Wings of Hope as the first, second or last beneficiary of your current life insurance policy. So the money from the insurance policy will not be lost if the first beneficiaries die before you.
. Transfer by will
The proceeds of a life insurance policy can also be bequeathed toWings of Hope by will. In this case, a gift equal to the sum insured is deemed to be made to Wings of Hope for the year of death. The tax benefit of the gift goes to the estate.
. Heritage Replacement Insurance
In order for their donations to not reduce the value of their estate, some people use tax returns from their donations to buy life insurance of the same value. Upon death, the insurance benefit is paid directly to the heirs and does not increase the taxable amount of the estate.
You may want to join those who wish to build Wings of Hope by establishing an endowment fund in your name or that of a loved one.
The money you pay into your endowment will be kept in perpetuity. All investment income will be used for project funding year after year. The Wings of Hope can then count on long-term resources. The funds thus created will always be identified as such in the financial statements of the organization.
The creation of such an endowment fund can be done in your lifetime by a donation; it can also be done by bequest or by the gift of a life insurance policy. Whatever the means chosen, you will today have the satisfaction of making a tangible and positive gesture. Your name will be forever associated with the Wings of Hope and the human development of the peoples of remote communities in Latin America. Like St. Teresa of the Child Jesus, you too can “spend your Heaven doing good on earth”.
An official document states the establishment of each fund. Your written permission is required to create the fund.
You can give Wings of Hope, as a gift, the funds that at the time of your death have not been affected under a pension plan.
If you use this contribution method, simply tell your pension administrator your decision to designate Les Wings of Hope as the first, second or last beneficiary under a pension or profit-sharing plan of an RRSP or RRIF.
The measures contained in recent federal and provincial government budgets now favor the donation of shares and properties subject to significant capital gains. These measures encourage donors to make major donations from their capital and not just from their income. It is more advantageous to transfer the securities to Wings of Hope than to give the proceeds from the sale of securities.
You can also transfer ownership of a building to Wings of Hope while reserving the right to live there, you and your spouse (the usufruct).
Mr. André Franche, President of Wings of Hope, is at your disposal to help you choose the planned gift best suited to your situation.
Simply call or write to him for advice or to request a meeting. It is important that you feel comfortable. Do not hesitate to consult your own professional advisor (notary, lawyer, accountant or other financial expert), family members or others who are important to you.
Obviously, any consultation on this subject will remain entirely confidential. In addition, if you wish to keep the anonymity of your donation, your choice will be strictly respected.
Your support is more than ever vital to ensure the continuity and development of the mission, providing Wings of Hope with long-term resources and thereby perpetuating the values you hold dear.
In advance, we say a warm THANK YOU for any planned gift you decide to make to Wings of Hope.
Beyond the monetary value of your donation, we are aware that there is a part of your life, your hard work, your privations or your savings that you entrust to us to increase our interventions with the underprivileged populations of Peru.
Thanks to your generosity, the lives of thousands will be forever changed!
M. André Franche, president
Wings of Hope
7665 Saint-Laurent Blvd. Office 202
Montreal QC H2R 1W9
Tel. 514 277 5111 or 1 866 277-5111
Registered Charity: BN: 10306 6064 RR0001
Legal and complete name of the organization:Wings of Hope Québec Inc.