Include a humanitarian gift in your estate plan

Topics: National, Philanthropy News
August 17, 2012

Include a humanitarian gift in your estate plan

Have you been searching for a way to have a lasting impact on the world around you? A specific amount or a percentage of an estate can be named in a will, offering flexibility and peace of mind to the donor.

Many philanthropists opt to plan a gift to the non-profit organization of their choice by updating or adding a codicil to their will. A specific percentage of an estate can be left in the care of a charity, offering flexibility and peace of mind to the donor.

Other popular methods include: directly naming a charity through a registered retirement income fund (RRIF) or registered retirement savings plan (RRSP). If you still depend on the money you generate through your assets, you may prefer donating through a charitable gift annuity, which allows you to immediately give to your charity and receive guaranteed income that is largely tax exempt. Life insurance could multiply the amount of your gift.

If you're unsure what method best meets your needs, a financial advisor can assess your economic situation and offer helpful feedback regarding how you should donate.

While donating can offer tax benefits, including reducing the taxable amount on your estate, for many philanthropists, the joy of helping others in need often outweighs the financial aspect of the decision.

Just how significant has non-profit giving become to the public? A 2011 survey commissioned by Ipsos Reid of the Association of Fundraising Professionals (AFP) found that many Canadians believe that planned giving is an important way to bridge gaps between the public and private sectors.

Recent research by the Nonprofit Research Collaborative (NRC) corroborated this, noting that donations rose by 54 percent in 2011 for surveyed charities, while 70 percent of these organizations anticipate increases during 2012. Despite this upward trend, Reid reported that Canadians are donating in smaller amounts than in years past.

Offered by the Canadian Red Cross, The Legacy Club is a wonderful way to provide consistent support for the organization's community-enriching outreach programs. Participation in this venerated circle of committed donors will give you the satisfaction of knowing that you will leave a humanitarian mark on the world and that your values will continue to flourish.

Investments such as bonds and publicly listed securities can also help support designated Red Cross charity programs.

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