Other Planned Gifts: Life Insurance, RRIF’s and RRSPs
Planned Giving is the term often applied to gifts that meet the donor’s personal philanthropic goals while providing the greatest possible tax benefit. Planned Gifts often allow the donor to make a much larger gift that would otherwise be possible, because Planned Gifts often come from the accumulated assets of a lifetime.
A Gift of Life Insurance can be an easy and very effective way to make a significant contribution to LOFT Community Services. Life insurance can be gifted in a variety of ways. The most common ways are:
- Transfer an existing policy: certain types of life insurance policies have a “face value” or “cost value” that will qualify for a charitable tax receipt at the time of transfer.
- Take out a new policy with LOFT Community Services named as the owner and beneficiary and charitable tax receipts can be issued to you for the premiums you pay.
- Make LOFT Community Services the beneficiary of an insurance policy. There is no immediate tax benefit for this option, but your estate will receive a charitable receipt for the death benefit.
Making LOFT the Beneficiary of your RRIF or RRSP means a future of hope and recovery for people in need, and a charitable tax receipt will be issued to your estate for the full amount of the donation.
RRIFs and RRSPs can become fully taxable as income in the year of your death. At the same time, your estate may claim charitable donations in the year of death equal to 100% of net income in that year plus 100% of net income in the preceding year. Naming a chairty as the beneficiary of your RRIF or RRSP can result in a significant tax benefit to your estate.
You have full use of the retirement savings investment while you are alive, and the gift can be revoked at any time if your financial situation changes.
Please contact your legal or financial advisor if you are interested in any of these ways of giving. Please note that LOFT is not able to provide legal or financial advice.
For more information contact:
Jane Corbett, Director of Development
LOFT Community Services
15 Toronto Street, 9th Floor
Toronto, ON M5C 2E3
Phone: 416-979-1994, ext 227