What is planned giving? Why is it important to me?
Planned Giving is often referred to as gift planning, deferred giving, legacy giving or estate planning. It’s very important to you because it can bring the greatest value for your money at any income level and it can benefit a cause you’re passionate about.
Planned giving means spending a bit more time thinking about how you will support your favourite charitable organization in the future. It means you are planning to give a gift to a charity as part of your legacy during your lifetime or after your passing. There are a few ways that individuals or families can include charitable giving in their future plans.
The traditional method:
This means giving what is left after you pass away to a charity or charities. For example, Jennifer and Arthur meet with their financial services professional and their lawyer to write a will and to figure out how much money they need during retirement. Jennifer and Arthur ask their lawyer to make sure their will is written so that after they pass away, whatever is left in their estate will be donated to their specified charity. This is the easiest way to give. It doesn’t affect Jennifer and Arthur’s quality of life today, and they have peace of mind knowing that what they don’t need during their lifetime will go to great use for a cause they’re passionate about.
The comprehensive planned giving method:
This method includes coordinating your owed taxes with charitable gifts. For example, Hector and Liz are successful business owners with multiple homes; their accountant informs them that they will owe taxes after passing away. Their financial services professional and accountant create a plan for Hector and Liz to eliminate their taxes at death in a more efficient manner than they are able to do while alive, all while benefiting their charity with a lump sum gift after passing.
The benefits of both these methods include:
• Works on any budget or income.
• Reduces your taxes either ongoing during lifetime or after death.
• Reduces probate fees.
• Helps your favourite charity in a significant way.
• Creates a legacy of your life story and what is most important to you.
You can make a transformational impact on a cause you care about by making a planned gift now. If you would like to learn more about planned giving or how you or a loved one can leave a legacy, please contact Linda Foster at 604-639-8913 or lfoster@covenanthousebc.org.
None of the aforementioned individuals offer legal/tax advice and services. Individuals should seek legal/tax advice from appropriate professional advisers.