Donate

Donations are always appreciated by Cornerstone Counselling and are put to good use by Cornerstone’s Way to Wellness Fund which provides subsidized counselling fees for clients in need of support. However, in addition to regular donations, Cornerstone asks that you consider Planned Legacy Gift Giving which provides additional methods of supporting the Way to Wellness Fund.

• Bequests (in your Will)

  Including a gift to charity in your Will is a fantastic way to ensure that your Last Will and Testament is a true “Testament” that reflects the causes that are important to you. Your bequest will continue your support of the charity or charities that have been a key part of your life. You’ll have to decide how much you want to give, when, and to whom. The gift could flow immediately from your estate or could be disbursed over several years from a trust fund set up by your estate.

  There are various ways of structuring a charitable bequest:

  Specific Bequest

  This happens when your Will’s instructions state that a specific item (e.g. car, cottage, equipment, artwork, etc.) is to be given to the beneficiary you’ve named as the recipient. You could also specify a fixed dollar amount. Specific bequests flow to the designated recipient before the residue of the Estate is distributed.

  Residual Bequest

  You could state that a percentage of the “residue” of the estate is to flow to the charity or charities. An example would be where the Will’s instructions indicate the charity is to receive 10% of the residue (residue being whatever is left over after debts, taxes, and any specific gifts have been distributed).

• Life Insurance (various methods)

  You can name a charity as a beneficiary (primary or alternate) of your Life Insurance policy which means that, upon your passing, the gift may flow directly to the charity without having to become part of the Estate Probate process which can become lengthy and complicated. A tax credit will be issued at the time the funds are received by the charity and that tax credit may significantly reduce or eliminate the taxes owed by you or your estate.  Many donors have a charity specified as the alternate beneficiary so that, if the primary beneficiary (e.g. spouse) isn’t there to receive the funds, the funds will flow directly to the charity.

  You can also name a charity as the owner and beneficiary of a new or existing policy. Since the gift, once made, is irrevocable, transferring ownership of an existing life insurance policy to charity can result in a tax receipt being issued immediately for the “cash value” you may have already built up in the policy and for further payments you may make. This method is often the preferred choice for those who are likely paying higher taxes now and aren’t anticipating a large tax hit on their estate.

  Insurance Gifts flow “outside” of the probate process meaning they don’t even become part of the estate that is governed by the Will’s instructions.

• RRSPs or RRIFs

  By naming a charity as the beneficiary (primary or alternate) of your RRSP or RRIF, whatever is left in your RRSP or RRIF becomes a gift to charity and any tax owed by the Estate for “cashing in” the RRSP or RRIF is eliminated by the charitable tax credits issued for the gift. Again, these gifts flow outside of the probate process.

• Appreciated Securities

  If you donate, either now or via your Will, your Appreciated Securities directly to a registered charity (meaning you don’t sell them and then donate the proceeds), any capital gains tax that would be owed if you or your estate cashed the Appreciated Securities would be eliminated AND you or your estate would receive a full tax receipt for the amount given.  You’ll save on taxes twice!  No capital gains tax will be owed AND you or your estate will also receive a tax credit.

• Endowment or Donor-Advised Fund

  This involves giving an irrevocable deposit of funds which yields annual income for your chosen charities. You can create this while you are living or via your Will. You can even determine how and when the funds will flow to the charity (interest income only or interest and a portion of the principle) and how the funds should be used by those charities. A tax receipt is issued when the fund is set up. For example, an endowment of $50,000 that earns 2% interest could provide a perpetual annual gift of $1,000 per year or higher if interest rates increase.  Or, if you wished to “empty” the fund over 10 years, the annual gift could be approximately $5,500.

• Charitable Remainder Trust (“CRT”)

  A CRT is the means by which you provide irrevocable instructions (now or via your Will) that create a trust which governs the transfer of a major asset (cash, real estate, or securities) to a charity but allows you and/or your spouse or family to retain the right to use the asset or receive any income generated by the asset during your lifetime.  A charitable receipt may be issued immediately for the present value of the gift when the transfer is made since the property then belongs solely to the charity upon your passing.

  An example would be where your instructions indicate that upon your passing, your home may continue to be resided in by your children and perhaps their Guardian until the youngest has reached the age of 21 at which time the home is to be transferred to your choice of charity.