There are several ways to make a charitable gift and each will have different benefits. While making a gift in a will is the most common way to support KinVillage through your estate plan, there are other types of gifts that may suit your needs and financial situation. We encourage you to talk to your professional advisor and with KinVillage who can help you decide which option(s) will work best for you and your family.
A Legacy in Your Will (Bequest)
A charitable bequest is a gift made in your will.
When you include a gift in your will, you can direct the gift to support a particular charitable program or activity at KinVillage. Or you can allow KinVillage to decide how best to use the gift to support its greatest needs at that time. It is also important to use the correct legal name: KinVillage Association on all official documents associated with your will and bequests.
Types of Bequests
There are different kinds of bequests including donating a specific sum of money, a percentage or portion of your estate, or a commitment if other named beneficiaries do not survive you. For each, you must use precise and specific language to indicate the precise distribution of your assets.
- Specific Bequests
- Residual Bequests
- Contingent Bequests
RRSP’s, RRIF’s or TFSA’s
Donating RRSP’s (Registered Retirement Savings Plans), RRIF’s (Registered Retirement Income Funds), TFSA’s (Tax Free Savings Accounts) are economical vehicles for giving a financially larger gift to KinVillage without substantially drawing on your current assets.
Gifts of retirement plans (assets) and TFSAs are made when you name KinVillage Association as the designated beneficiary. This means that upon your death, (or after the death of your surviving spouse or partner) KinVillage would receive the proceeds and your estate will receive a charitable donation receipt. This receipt will reduce the tax payable on your final tax return.
Gift of Securities
You can now eliminate the potential tax on capital gains by donating publicly traded securities directly to KinVillage. This applies to publicly traded shares, bonds, or mutual funds.
If you sell your appreciated securities, you will incur capital gains tax. However, if you donate them directly to KinVillage, you will pay no tax on the capital gains and you will be issued a charitable donation receipt for the full fair market value of the securities at the time KinVillage receives them.
It is important to use the correct legal name: KinVillage Association on all official documents associated with your gift of securities.
Donating life insurance is an economical vehicle for giving a financially larger gift to KinVillage without substantially drawing on your current assets. By giving through life insurance, you can make a significant future gift with only a small annual or monthly cost. Please remember to use the correct legal name: KinVillage Association on all official documents associated with gifts of life insurance. There are several ways of leaving a legacy using life insurance and the tax savings are different for each:
- Assigning an existing policy so KinVillage becomes owner and beneficiary
- Purchasing a new policy with KinVillage as owner and beneficiary
- Naming KinVillage as the beneficiary, but not the owner, of a new or existing policy
- Naming KinVillage as the beneficiary, but not the owner, of your policy through your will
A gift of residual interest is made when you decide to give real estate or personal property (e.g., art or valuables) to KinVillage while retaining the right to use the property for life or for a certain period of time. When the property title eventually passes to KinVillage, you will receive a charitable donation receipt for the then present value of the donated residual interest. Upon your death or expiration of a certain period of time, KinVillage will then have complete control of the property.
A donation of real estate is made when you gift property, buildings, land, or a place of residence that you own to KinVillage. This type of gift can be given immediately or specified in your will. You or your estate will receive a charitable tax receipt, which can be used to offset income tax immediately or in your final income tax return.
An endowment is a contribution where the original capital donation is preserved in perpetuity. The capital is invested and only the income generated from the endowment fund is used for the purposes outlined in an endowment agreement, while the capital remains protected and continues to generate income over the years.
Donor Advised Funds
A Donor Advised Funds (DAFs) is a charitable giving vehicle that can be established at KinVillage. It enables donors to make a charitable contribution without specifying how the donation will be used now, and the funds in the DAF can grow tax-free. The donor receives an immediate charitable donation receipt and can recommend allocations from the fund to support KinVillage’s programs or priorities over time.
A charitable gift annuity is an arrangement where you transfer a lump sum to KinVillage, usually through an annuity issuer such as a life insurance company. In exchange, you receive an immediate charitable donation receipt as well as fixed, guaranteed income for life or for a term of years. Your annuity income may be partly or fully tax-free. There are several types of annuities:
- Gift Plus Annuity
- Charitable Insured Annuity
Charitable Remainder Trusts
A charitable remainder trust is a deferred giving arrangement under which you may transfer property, cash, securities, or real estate to a trustee. You, and/or other beneficiaries, retain the right to the income from the trust or use of the property either for life or for a specified number of years. KinVillage receives whatever remains in the trust after the specified term, or after the death of the last beneficiary, whichever has been stipulated in the trust document. Charitable remainder trusts can be either revocable or irrevocable.
Name: KinVillage Association
Charitable Registration Number: 118982867 RR 0001
Address: 5410 – 10 Avenue Delta, British Columbia Canada V4M 3X8
Contact: Donna Ellis, CEO
Phone: 604.943.0155 (ext. 600)