Man­ag­ing your money: Char­ity – the most giv­ing of gifts

Southwest Booster - - NEWS - Gen­eral in­for­ma­tion only and is not a so­lic­i­ta­tion to buy or sell any in­vest­ments. Con­tact your own ad­vi­sor for spe­cific ad­vice about your cir­cum­stances. For more in­for­ma­tion on this topic please con­tact your In­vestors Group Con­sul­tant.

Christ­mas is a time for the exchanging of gifts – and you al­ways do your best to match each of your gifts to each of the peo­ple who will be re­ceiv­ing them. At this time of year, you might also be think­ing about another kind of giv­ing – char­i­ta­ble giv­ing – to help and sup­port wor­thy causes you care about. Like your other gifts, you want your phil­an­thropic gift to be the best match for the char­ity of your choice – and for you. Ide­ally it will be a gift that helps your char­ity while min­i­miz­ing your taxes and other es­tate fees, and pre­serv­ing your legacy. Here’s how you can make the most of your char­i­ta­ble giv­ing.

The sim­plest op­tion: Name a char­ity as a ben­e­fi­ciary In your will, sim­ply leave a be­quest of money or a gift in kind (such as se­cu­ri­ties or art­work) to a rec­og­nized char­ity. Your es­tate will re­ceive a char­i­ta­ble dona­tion re­ceipt that could re­duce the in­come tax on your fi­nal re­turn and per­haps the im­me­di­ately pre­ced­ing re­turn, as well.

Be a donor: Es­tab­lish a Donor Ad­vised Fund You will re­ceive an im­me­di­ate tax re­ceipt for all con­tri­bu­tions made to the fund while re­tain­ing the right to ad­vise as to which char­i­ties are to re­ceive your fund’s in­come.

Trust: Es­tab­lish a Char­i­ta­ble Re­main­der Trust This ir­rev­o­ca­ble trust holds as­sets such as cash and mu­tual funds. The in­ter­est and div­i­dends are paid to you as tax­able in­come. At the time of your death, the trust as­sets – known as the ‘re­main­der’ – go to your des­ig­nated char­ity. When you es­tab­lish the trust, you will re­ceive a dona­tion re­ceipt for the ‘ re­main­der in­ter­est’ of the trust.

In­sure your giv­ing: Do­nate a life insurance pol­icy while you live You will en­joy cer­tain tax cred­its and your char­ity will re­ceive the to­tal death ben­e­fit un­der the pol­icy.

Se­cure your gift: Do­nate pub­licly funded stocks or se­cu­ri­ties You will get a tax re­ceipt for their full value and will not pay tax on the cap­i­tal gains of the do­nated se­cu­ri­ties.

Give and re­ceive: Es­tab­lish a Char­i­ta­ble Life An­nu­ity Set up the an­nu­ity for your­self, or for you and your spouse, and re­ceive a life­time in­come from the as­sets. Much of the an­nu­ity cash f low is tax-free and you will get a char­i­ta­ble re­ceipt for a por­tion of the do­na­tions based on the amount of an­nu­ity in­come you re­ceive and your life ex­pectancy.

Go pri­vate: Es­tab­lish a Pri­vate Foun­da­tion When you make a sub­stan­tial dona­tion, es­tab­lish­ing a foun­da­tion al­lows your name or fam­ily’s name to be per­ma­nently as­so­ci­ated with the cause you’ve cho­sen.

Give the gift of your­self: Vol­un­teer Your char­ity will cer­tainly make good use of your mone­tary dona­tion – and you, when you choose to take an ac­tive role as a vol­un­teer.

To give the most and get the most from your char­i­ta­ble gifts, talk to your le­gal and pro­fes­sional ad­vi­sor about the best char­i­ta­ble giv­ing plan for you and your char­i­ties.

This col­umn, writ­ten and pub­lished by In­vestors Group Fi­nan­cial Ser­vices Inc. (in Que­bec – a Fi­nan­cial Ser­vices Firm), and In­vestors Group Se­cu­ri­ties Inc. (in Que­bec, a firm in Fi­nan­cial Plan­ning) presents

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