Legacy Giving
Consult our Legacy Giving to see how gift planning could benefit our facilities and programs on top of providing tax benefits for you the donor. A Legacy Gift to Wellspring Cultural Foundation will sustain the facilities and financial support for apostolic and spiritual programs and activities. The successes of tomorrow’s leaders in faith and society will resound with today’s charitable gifts. Scroll to discover your options for legacy gifts.
Benefits of Making a Legacy Gift
- Receive a tax receipt for the appraised fair-market value determined on the day the gift is made.
- Claim charitable donations up to 75% of your net income, plus claim 25% of the taxable capital gain resulting from a gift of appreciated capital property.
- A five year carry forward on unused donation amounts is permitted.
Legacy Gift Options
Bequests
Your estate qualifies for a tax credit that can be used in the year of death and the preceding tax year to offset earned income, which can be a powerful tax planning tool.
Stocks & Securities
For individual investors, the donation of publicly traded stocks or securities can be a very tax-efficient way to donate.
Life Insurance
By transferring ownership of a paid-up life insurance policy, or designating Wellspring as the beneficiary of an existing policy, you can make a tax efficient donation.
Registered Accounts (RRSP, RRIF, LIRA, and TFSA)
A tax receipt for the value of the investment gifted will be issued to the donor’s estate (this may be all or part of the assets in the plan) and applied towards the final income tax return.
Charitable Trusts/Charitable Giving Account
Charitable trusts offer you the ability to donate now, arranging your legacy while you are alive, and receiving the corresponding tax benefit immediately.
Corporate Matching
Some corporations provide corporate matching so that the corporation will match the contribution you have made with Wellspring. You will need to follow up with your corporation to see if it is provided.
Bequests
Giving to Wellspring Cultural Foundation through a planned bequest will allow you to plan your gift now, but donate it at a later date.
When creating a bequest to Wellspring, the designation can be made in general or directed to a specific undertaking or activity (i.e. a certain program or charitable endeavor that Wellspring supports). It is common to designate an amount as a portion of an estate’s value. This way, if your estate has changed in value from the time you create your Will, Wellspring will be given an amount corresponding to your estate’s change in value.
While donating to Wellspring is the main motivation for many of our donors, the accompanying tax credit earned is an added benefit to the use of a bequest. Your estate qualifies for a tax credit that can be used in the year of death and the preceding tax year to offset earned income, which can be a powerful tax planning tool. You may claim up to 100% of your net income in your final tax return, or the year preceding.
Finally, a bequest is revocable and can be changed if your financial circumstances change. When including Wellspring in your will, please contact us for sample wording.
Take the case of a supporter of Wellspring who died on June 1, 2013 and named Wellspring in their will. The $170,000 donation produces a tax credit which is large enough to reduce his 2013 tax liability to nil, but there’s still some tax credit left over. The chart shows how the benefit from the donation in the year they pass away can be carried back against previous year’s income. After tax, this donation of $170,000 costs $93,500 to the donor. Additionally, if there were a leftover amount after having carried back the total donation in the year of death (if, for example, the donated amount was $500,000 rather than $170,000, which would leave $300,000 of donations to be claimed) a surviving spouse of the donor may claim this or carry it forward indefinitely to be used against future income.
| 2012 | 2013 (Year of Death) | |
|---|---|---|
| Net Income | $150,000 | $50,000 |
| Donation | $0 | $170,000 |
| Donation Tax-Credit Limit (100% of income) | $150,000 | $50,000 |
| Carry-back of donation tax-credit | - | $120,000 |
| Donation claimed on tax return | $120,000 | $50,000 |
| Donation tax-credit received | $54,000 | $22,000 |
Stocks & Securities
For individual investors, the donation of publicly traded stocks or securities can be a very tax-efficient way to donate.
We can receive your donation either through an electronic transfer or through physical delivery of your shares to Wellspring’s donation account. Our transfer agent will make the transfer and then Wellspring will issue a tax receipt based on the market value on that day. As a charitable organization, we can also have donated securities sold without incurring commissions or transaction fees. Donors will receive a tax receipt for the full market value of publicly traded securities, including stocks, bonds, debentures and mutual funds. Our office can help you to determine whether an investment is eligible for donation. A five year carry forward on any unused donation amount is also permitted, so your gift today can provide tax benefits for several years going forward.
Life Insurance
For many people, life insurance is an integral part of their financial plan.
At the same time, it can form a part of a legacy donation. By transferring ownership of a paid-up life insurance policy, or designating Wellspring as the beneficiary of an existing policy, you can make a tax efficient donation. For a small amount of money paid in premiums, Wellspring can receive a large benefit. For existing policies, the donor would receive a tax receipt for premiums which are paid after the date of transfer. In the case of a beneficiary designation, your estate will receive a tax receipt when the benefit is received by Wellspring which can be used to offset estate liabilities and reduce taxes owing. Please contact our office for help in transferring ownership of a policy, or designating Wellspring as your beneficiary.
Registered accounts (RRSP, RRIF, LIRA, and TFSA)
Wellspring and other charitable organizations can be a named beneficiary on registered retirement plan documents.
A tax receipt for the value of the investment gifted will be issued to the donor’s estate (this may be all or part of the assets in the plan) and applied towards the final income tax return. Benefits of making a gift of RRSPs or RRIFs:
- RRSPs/RRIFs gifts are a tax-effective means of supporting Wellspring. You have use of the retirement saving investment while you are alive. Your estate may claim gifts in the year of death equal to 100 per cent of your net income in that year and the preceding year.
- RRSPs/RRIFs become fully taxable as income in the year of death, usually at the highest marginal tax rate, unless any remaining funds in a RRSP/RRIF account can be rolled over to a surviving spouse or a dependent child.
RRSPs/RRIFs gifts are revocable and can be changed if your financial circumstances change.
Charitable Trusts/Charitable Giving Account
Charitable trusts offer you the ability to donate now, arranging your legacy while you are alive, and receiving the corresponding tax benefit immediately.
You can also retain control over the investment of the assets, and enjoy income payments from the assets life. Our team can help to establish a Charitable Trust which irrevocably transfers assets to Wellspring through a trust. This trust is then managed by a trustee who can direct income payments to yourself or to Wellspring, as you deem necessary.All assets that are donated into the trust qualify for a tax benefit for the donor. As with most donations, you can carry forward the donated amount for up to 5 years, and apply it to future tax returns. Charitable Trusts are well suited to people who require income from their investments, but would still like to support Wellspring with a donation from their estate.