There are many ways to make a gift to the Sault Area Hospital Foundation and also receive tax benefits.
A gift through your last will and testament is simply a distribution from your estate to the SAHF. There are different kinds of bequests. For each, you must use very specific language to indicate the precise direction of your assets and to successfully carry out your final wishes. In any charitable bequest, be sure to name the recipient accurately. Bequests are the most common planned gift.
Gift of Securities
A gift of appreciated publicly traded securities - stocks, income trusts, bonds, mutual fund and shares - are the most tax-effective ways to make a donation.
Many people find that giving a gift of security, allows them to make a substantial contribution to the SAHF while offering significant tax benefits. The gift can be made during your lifetime or as part of the estate process.
Tax benefits to donating securities: normally, when you sell a publicly traded security, you must pay tax on 50% of gains realized. Yet, when you donate a gift of security to a charity, the capital gains tax is eliminated.
You will receive a charitable donation receipt for the full amount of the fair market value of the security, just as if it had been a cash donation.
There are a variety of life insurance policies that are equally beneficial to the donor and the charity. Below are the various ways to give a life insurance policy to the SAHF:
Gift of RRSP/RRIF
- Transfer ownership of a paid-up policy
- Transfer ownership of an existing policy with premiums still owing
- Purchase a new policy, initially naming the charity as the owner
- Name the SAHF as primary beneficiary of a policy
- Name the SAHF as a co-beneficiary
A gift of an RRSP/RRIF can be made by designating the SAHF as the beneficiary. The tax credits generated by the charitable tax receipt will offset taxes payable on the distribution of the registered retirement fund. The estate could then claim the RRSP up to 100% of net income on the final tax return. This incentive simplifies a gift of this type and, therefore, has become quite popular.
Charitable Gift Annuity
Through annuities, you make a charitable gift to the SAHF. A gift annuity is a contract between you and the Sault Area Hospital Foundation that would guarantee you and your beneficiary's income payments for life.
An income from the annuity is guaranteed, a tax credit may accrue to you, and at the same time, the SAHF benefits. It is a gift that is guaranteed and a virtually tax-free retirement income. Gift annuities help ensure a healthy future for our hospital and members of our community.
Donating to an endowment is another way to leave a lasting legacy to the SAHF. Monies in an endowment fund are invested in perpetuity. The annual income derived from the endowment will purchase patient care equipment for the hospital. The minimum required to establish a named endowment is $50,000. This named endowment will be established to honour a donor, a family member or a loved one.
For More Information on Endowments, Click Here
Gift of Property
Gifts of property are often unnoticed as a charitable gift. However, land, houses or cottages, whether commercial or private, are charitable gifts. If the property is the donor's principal residence, the capital gain is not taxed. A tax receipt will be issued for the fair market value of the property donated.
Sault Area Hospital Foundation would not presume to offer financial advice. We recommend that you seek professional legal, estate planning and financial advice to assist you to establish a planned gift that will meet your philanthropic interests and achieve the greatest tax benefit to you