Gift of Securities & Life Insurance

 

 

Gift of Securities

Doug & Elaine Thistle

A Gift to the Hospital Is a Gift to the Community as a Whole
For Doug and Elaine Thistle, giving is a way of life. When they retired and sold their business and its property, they chose to donate a substantial number of high-yield shares to the Yarmouth Hospital Foundation. The sale of their business and property came with major tax implications, but by making a registered charity the recipient of their gift of securities, the tax implication was cut in half. "It's a cost-effective way of supporting a charity" says Elaine. The donated shares will continue to appreciate in value, and that profit will go directly to support the vital work of the hospital, since registered charities do not pay income tax.

The Yarmouth Hospital Foundation welcomes gifts of securities, such as stocks, bonds, and mutual funds. These types of gifts can be made today or as part of your will. The federal government has created special incentives to encourage such gifts by eliminating the capital gains tax when securities are transferred directly to a charity.

Using publicly listed securities (stock, mutual funds, and bonds) to make your donation can be more advantageous from a tax perspective than using cash. Normally, if you sell securities and donate the cash, 50% of the capital gain is added to your taxable income. This means that while you receive a tax credit for the charitable donation, you will pay income tax on the gain. There is no tax paid on the capital gain if the securities are transferred directly to the charity, making this type of gift more tax efficient.

How to Make a Gift of Securities

We encourage you to contact us at the Yarmouth Hospital Foundation prior to your planned transfer of securities so we can discuss the purpose of the gift. Paulette Sweeney-Goodwin, Managing Director, is available at (902) 749-1669 or at Paulette.Sweeney@nshealth.ca.

*The value of your tax receipt will be based on the closing market price of the securities on the day deposited to the Foundation's account.

Gift of Life Insurance - Insuring the Furure

Marcel & Shara Pothier

Marcel & Shara Pothier have chosen to make a major gift to the Yarmouth Hospital Foundation by investing in an insurance policy. "We can write a small cheque every month for an insurance policy that will be payable to the Foundation when we pass" says Shara. Opting for this approach is a great way to craft a long term gift to the hospital. You can start out with an amount you can afford, and over time it will grow into something substantial.

How to Make a Gift of Insurance

There are several ways to make a gift of life insurance to a charity:

  1. You can purchase a life insurance policy and make a charity both the beneficiary and owner. With this option, you will receive a tax receipt for the annual premiums paid. This way, you are able to make a substantial future gift at a considerably reduced after-tax cost.
  2. You can assign an existing policy to a charity. You will receive a tax receipt for any cash value in the policy. While there may be a taxable gain to report as income, the resulting tax credit could be greater than any income tax triggered by the donation. In some cases, it may be possible to receive a tax receipt for the fair market value of the policy as determined by an actuary (less any policy loans outstanding).
  3. You can name a charity as a beneficiary of a policy without transfer of ownership. In this case, an immediate tax receipt is not issued, but your estate will receive a tax receipt when the policy is paid upon your death. The receipt will produce a tax credit for your final tax return.

We can Help

Contact Mary Surette, Managing Director, to explore all of the options available.

Mary is available at (902) 749-1669 or Mary.Surette@nshealth.ca

All discussions are held in strict confidence and do not require any commitment on the part of the donor.