Types of Planned Gifts

Wills and Bequests

A bequest to the Lung Association of Saskatchewan in your will is one of the most popular ways of leaving a legacy for the future.

The importance of having an up-to-date will cannot be overestimated. Through your will, you can make provisions for:

  • the financial security of your family
  • the naming of guardians for young children
  • property distribution
  • funeral instructions
  • financial gifts to causes that you support to ensure that your beliefs live on and the work you supported in your lifetime will continue.

Unfortunately, a high percentage of Canadians die without a will (intestate). The probate process for an estate without a will can be costly and time-consuming, and will not take into account your personal wishes and priorities.

By constructing your will carefully, you can avoid excessive taxes. For example, a charitable bequest can reduce the final tax burden of your estate by as much as 100% of your income in the year of demise and the previous year.

We recommend that you seek the professional advice of your family lawyer and a financial advisor when drawing up your will. Your lawyer can draft or amend your will to include a bequest to the Lung Association of Saskatchewan if you choose. Your financial planner can advise you on how to obtain optimal tax benefits for various forms of charitable gifts.

(Click here for suggested wording in wills)

Perhaps you have already made a provision in your will to leave a lasting legacy to the Lung Association of Saskatchewan. If so, we would very much appreciate hearing from you, so that we may properly thank you. We assure you that any details you provide will be kept completely confidential.

(Click here to confirm your bequest)

 

Life Insurance

For many people, naming the Lung Association of Saskatchewan as a beneficiary of a life insurance policy provides an optimum combination of immediate and long-term tax benefits, affordability, and the satisfaction of leaving a significant sum of money to perpetuate the work we all believe in.

Few other forms of planned giving provide so many benefits to the donor.

Gifts of life insurance can be revocable or irrevocable. They can involve old policies which are no longer needed, current policies, or the purchase of new policies. They can be combined with your estate plan to benefit both your estate and your favourite charity.

The amount of the gift is guaranteed and is not reduced due to taxes, probate or administrative costs. Premium payments are eligible for tax receipts, and unlike an RRSP, life insurance is not taxable and is distributed intact after death.

Stocks and Securities

The Canadian income tax system encourages the residents of our great nation to make gifts to charitable organizations through the granting of tax credits.  Thanks to the recent tax changes made by the Federal Government, it's become a more cost effective gift than ever before to donate gifts of securities and stock to The Lung Association.  Donating stock securities to The Lung Association of Saskatchewan benefits you and your family today, while serving your community for a lifetime.

On May 2, 2006 the Federal Budget exempted charitable donations of publicly listed securities from capital gains tax.  This means that if you transferred gifts of marketable securities such as stocks, bonds, or mutual funds directly to The Lung Association of Saskatchewan, you would not pay tax on the capital gains.  Compared to the usual tax on 50 per cent of the capital gains when a security is sold or transferred, the savings are very clear and the benefits to our charity are exciting!

Suppose you have securities that you previously purchased for $5,000 that now have a fair market value of $10,000.  If you sell the securities, the cash value after capital gains tax and selling commission would be $8,700.  If, instead, you transfer $10,000 in securities directly to The Lung Association of Saskatchewan, the gift would generate a tax credit of $4,400 to reduce tax on other earnings.  Neither you nor The Lung Association would have to pay tax on the capital gains.  Compared to selling the securities and receiving $8,700, the net cost to you of donating the securities is $8,700 less the $4,400 tax credit which equals $4300 to make a gift of $10,000 to The Lung Association.

All securities donated to The Lung Association are sold upon receipt, with the net proceeds directed to the area of greatest need or to the fund you designate.  The amount of your charitable gift receipt is determined by the closing price on the day The Lung Association receives the securities into our account.  The Lung Association may only consider a gift of securities of $2,000 or more.

Whatever form of planned giving is most appropriate to your own circumstances, each gift assists the Lung Association of Saskatchewan's long-range financial planning. Your planned gift will guarantee that we will always have the resources to speak out for the silenced and the defenceless.

This and other gifting strategies require appropriate planning.  We strongly encourage our donors, prospects and supporters to seek the advice of qualified professionals prior to making any planned gift to ensure the best possible outcome for you and our Association.

We would be happy to provide you with additional information about the full range of planned giving options. Please telephone our offices at 1-866-370-2004 or 1-888-566-LUNG (5864).

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Page Last Updated: 11/07/2016