There are a number of ways you can give to the Victoria Hospital through the Victoria Hospital Foundation. Your gift will aid in the ability for Victoria Hospital to purchase new equipment, upgrade equipment and facilities, and much more to maintain the excellence of patient care.
Ideas for Donors & Families:
• Consider your needs as a donor
• Consider the needs of the Victoria Hospital
• Your estate gift will come from current or future assets rather than from your income
• Estate gifts are generally larger amounts and provide Estate Tax Benefits
The 1996, 1997, 2001 & 2006 Federal Budgets included substantial changes to the tax act, which improved the tax treatment of gifts to charities such as the Victoria Hospital Foundation.
- The donation limit increased from 20% to 75% of taxable income.
- In the year of death the donation limit increased from 20% to 100% of taxable income, with any unused portion carried back to the previous year.
- When listed securities are gifted to a public charity, such as the Victoria Hospital Foundation, the inclusion rate on the capital gains reduced from 25% to 0%.
- We will work with your professional financial advisor to ensure that both your wishes for your donations and the tax implications are fully considered.
Ways to Plan Your Giving…
• Referred to as “the ultimate gift”
• Enables you to allocate as you choose
• Unrestricted bequest, allows the hospital to use where it is needed most
• Restricted bequest, allows you to specify a particular area of care the funds are to be used for
• Provides tax benefits to donor’s estate
• Receipt for full value of bequest
• Value of 100% of final year of income is allowed
• Excess value, carried back to previous year
Suggested language to bring to your Attorney:
” I give and bequest
particular sum of money: the sum of $_______
____% of my Estate: OR
____% of the residue of my Estate.
A particular item: my (i.e.: house/vehicle/stocks) that I may own at my death location at (location) to the Victoria Hospital Foundation; a charitable corporation under the laws of the Province of Saskatchewan and presently having its offices in Prince Albert, Saskatchewan to be used as the officers of the Foundation may direct (or specify a particular program or purpose, if you want it to be used in a particular manner).”
- Funded with securities, real estate or cash
- Is an irrevocable gift of value
- Provides income earning for life, or another beneficiary, or can be guaranteed
for specific number of years
- Amount of donation receipt for present value of remainder interest is determined
by Revenue Canada formula.
- If securities are used to fund the trust, capital gains implications must be considered.
- Donor can choose to manage the trust or not
- Gift is final, less likely to be challenged.
• Usually art work or real estate
• Kept by donor till death
• Ownership irrevocably transferred to the foundation
• Revenue Canada determines amount of donation receipt
• Benefits to donor not and foundation
• Immediate tax deductions
• Donor has continued use of property
• Satisfaction the gift will help the foundation
• Foundation’s knowledge of future funding
• Donor responsible to maintain property
• Tax considerations
- Funded by cash to the foundation
- Hospital purchases the annuity in name of donor and can be used to cover
both his/ her spouse through both life times
- Guaranteed income payments made according to life of annuity
- Amount of income that is tax-free and the amount of donation receipt
determined by Revenue Canada formula
- Flexibility for the foundation in how the funds are applied
- Method used to leverage small amounts of short-term investments into a large
meaningful future gift to the foundation
- Often referred to as, “Pennies in and Dollars out”
- Can use existing policies
- Can be structured as wealth replacement
- Policy designation to the foundation must be irrevocable
- Can use existing policies that are no longer relevant to the financial needs
of the donor
- Foundation to receive the death benefit
- Options are available to the donor on cash value
- Structure of beneficiary designation and charitable bequest are important to
maximize tax benefits.
- If policy is paid up then the tax receipt is issued for the cash surrender value
For new policies purchased by the donor, and owned by the foundation as the
beneficiary of the policy:
- Amount of premiums are eligible for charitable tax receipt resulting in tax credits,
to defray the cost to the donor
- The policy can be prepaid and dividends earned within the policy used to
- The Foundation receives the death benefit
As a donor you may hesitate to make a large gift because you do not want to lessen
the Legacy you leave to your children. You could:
• Make the donation and purchase a new policy with the children as beneficiaries
• Tax savings of the gift alone may cover the cost of the new policy
As a donor with concerns about current / future taxation and income flow, life insured
policies offer additional options:
• Fund a “Charitable Remainder Trust” and use the income to cover premiums of the policy
• Structure of funds and type of policies are critical for someone to maximize the tax benefits
Always seek the advice of a licensed professional
Effective May 2, 2006… the federal budget eliminated the capital gains tax on a gift of publicly-traded securities to public charities (charitable organizations and public foundations). This will provide donors with excellent tax savings for securities donations.
You may have stocks that have risen in value. By donating them to the Victoria Hospital Foundation you will no longer have to pay the capital gains tax. To qualify you must gift the shares to the The Victoria Hospital Foundation rather than sell the shares and donate the cash. The Victoria Hospital Foundation will sell the shares converting them to cash usually on the day they are received into our stock account or the following business trading day. The Victoria Hospital Foundation will then issue a Charitable Tax Credit Receipt for the value of the stocks you have donated
You may wish to donate a portion of your stocks to wipe out the capital gains due and keep the rest of the funds for yourself.
You might want to purchase or assist with the purchase of a piece of equipment for the hospital. You could make your donation in stocks and a leave your savings untouched.
Gift of RRSPs / RRIFs: All tax deferred instruments such as RRSP’s, RRIF’s, Annuities, Pension funds, or those converted to provide retirement income can be considered for this type of a gift.
In the year of death, donations up 100% of taxable income are deducted on the tax return with any unused portion allowed to be carried back to the previous year.
Upon death, total value of these funds must be reported as income and are fully taxable
If your retirement and estate plan provide sufficient income, you may wish to make a donation and there will be a large taxable amount at death, then making your estate the beneficiary of these funds should be considered. You would bequest the funds in your Will and donate the amount to the foundation
Result: tax free allocation of proceeds
Considerations are complex
Consult a professional
Actually may increase probate fees ($7 per $1,000)
Reduces or eliminates income taxes in final year (40% – 50%)