Other Ways to Give
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.
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 percent of your net income in that year and the preceding year (subject to CRA changes).
- 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.