The Legacy Project An action today to make a difference forever
Your guide to leaving a legacy and estate planning.
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How do you want to be remembered?
Include us in your estate planning and provide the YMCA experience to Prince George families of tomorrow. Learn more at www.pgymca.com
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Jubilee Lodge benefactor Allan Wishart allanw@pgfreepress.com
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ered to the residents at their tables.” Audrey, one of the food A lla n W ISHA RT/ Fre e Pre s s staff at the Loretta Jackson, right, the Northern Health residential program manager for Prince George, and some lodge, says the of the kitchen staff show off the renovations to the dining room at Jubilee Lodge. new facilities are “hugely different.” “It’s much more personal now for us,” Estate Planning and Charitable Giving Specialists she says. “It’s easier to make changes for the residents. Sometimes they ask for an extra dessert, and I know who can have one. “I consult with the aides and the staff. I don’t just make the changes on my own.” New tables in the dining room were also part of the legacy fund. Jackson says they also make a difference. “Conversations and friendship are forged around these tables. We also got them with reversible tops, because some of the residents have vision problems, and we can use the side which provides better contrast for them.” The renovations in the dining area included installing a steam table to keep foods warm while they’re being plated, a refrigerator and freezer, and a dishwashing room. Now, Gowan and Jackson are looking at using the funds still in the legacy account for an addition to the solarium. “We’d like to cover the outside walkway,” Jackson says. “Right now it’s actually kind of dangerous for some of the Matt Calvert residents because the fence is too low. They also can’t really use it when it’s Senior Partner raining.”
ome. It’s a word which comes up a lot when describing Jubilee Lodge, and what it hopes to become. “This is their home,” Northern Health residential program manager for Prince George Loretta Jackson says, sitting in the dinging room at the facility. “Before, it was very hospital-y. “We’re trying to change that.” One of the big changes is in the dining room area, thanks to a legacy grant received from a local family. “The son was here for about 20 years,” Don Gowan, the executive director of the Spirit of the North Healthcare Foundation, says. “The family wanted to leave the money here, because the staff made his life here so good.” Jackson says the family didn’t attach any strings to the legacy – except for one thing. “It was very important to the family to do something to benefit everyone here, patients and staff.” So they looked at the dining room. At that time, Jackson says, it was not a very good system for getting meals to the lodge residents. “We’re attached to the hospital, so the meals came on hospital trays. There’s nothing wrong with hospital trays – if you’re in the hospital. “Not too many people use hospital trays at home.” Staff also had to bring the food to the lodge from the hospital kitchen, a time delay which Jackson OLE H. SORENSEN, E.P.C. says made, “the hot food PRINCIPAL was cool and the cold food was warm.” 935 Brunswick Street Now, thanks to the legPrince George, B.C. V2L 2C3 acy, things are different, she says. Ph: (250) 561-1011 “The food is still preToll Free: 1-800-561-1024 pared in the hospital, but Fax: (250) 561-1037 SORENSEN e-mail: ole@sorensengroup.ca it’s brought here on a hot FINANCIAL SERVICES INC. cart. The staff here put it on plates, and it’s deliv-
Key Life WCF Financial Inc.
Locally Owned and Operated in Prince George Since 1971
Consultation is Free Phone: 250-563-6777 Toll Free: 1-888-563-6777
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Retiring and charitable donations
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lthough you may be primarily concerned with planning and enjoying your retirement years, considering estate plans and other issues are also part of a comprehensive financial plan. Making a charitable donation can be a very satisfying way to share your good financial fortunes with deserving causes and those less fortunate. Donating can also provide tax advantages to you and your family, either while you are alive or in your estate plans. The federal and provincial governments appreciate that it is good
social policy to provide tax advantages to those willing to make donations to worthy causes, so they have a number of policies in place that encourage charitable
CRISIS CENTRE FOR NORTHERN BC 24 Hour Line
giving.
Eligible Charities Although saving money on tax may not be the primary incentive to contribute to a particular cause, you want to be confident that the intended recipients of your donation will actually benefit. Unfortunately, various schemes have been created that appear to represent legitimate charities but are in fact fraudulent. Canada Revenue Agency (CRA) has information that helps you determine the status of a charity of interest: The CRA Charities Listing
The Charitable Donation Tax Credit
When there’s no one else to listen 250-563-1214 1-888-562-1214 www.northernbccrisissuicide.ca
He needs your help.
1-888-564-8336(TEEN) www.northernyouthonline.ca
13134 6066 RR0001
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ach year the BC Society for the Prevention of Cruelty to Animals helps more than 32,000 abused, sick, homeless, injured, lost and neglected animals at its 37 branches across the province. Your support enables the BC SPCA to rescue animals in need and give them a second chance at life. Please help by making a donation or leaving a gift to the animals in your Will. To ďŹ nd out how, visit us at spca.bc.ca/donate or contact: John Hoole Senior Manager, Gift Planning E: jhoole@spca.bc.ca P: 1.800.665.1868
The charitable donation tax credit has two levels as well as maximums allowed in a particular tax year. The first $200 of eligible donations will reduce tax payable at a rate of 15 per cent of the donation amount. Any amount donated over the first$200 per year reduces tax payable at a rate of 29 per cent. The amount of credits
claimed can generally not exceed 75 per cent of net income in the year the credit is being claimed. The credits cannot be carried forward but the donation itself can be spread out over up to five years.
Making aCharitable Donation There are different ways to make charitable donations which will have different tax/financial effects. For example, you can donate to an eligible charity or to the government. You can donate cash, life insurance or property. Property can include gifts of eligible securities. If you donate securities (such as stocks or bonds), you will receive a tax credit for the fair market value of the donation and you do not have to pay capital gains tax on any increase in value from when you bought the security to when you donate it. This is clearly preferable to selling the security and donating the cash since capital gains taxes would have to be paid. There are also advantages with respect to ordering of gifts.
Assisting Prince George and Northern BC families with children in Friends extraordinary medical of Children need since 1999.
Friends of Children is a charitable organization that relies upon donations. Your donations go to families with children in medical need.
PLEASE CALL TOLL FREE
1.866.564.2217 www.friendsofchildren.ca
BCSPCA SPEAKING FOR ANIMALS
Phone 250.564.2217 | Fax 250.564.2247 PO Box 2463, Prince George, BC V2N 2S6
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Charitable giving important to us
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haritable giving is a priority now up to the individual taxpayer. What makes these incentives distinct again for many Canadians. is that they all focus on gifts of assets In recent statistics: dona– stocks, bonds, mutual funds, real tions in 2011 increased and estate, RRSPs/RRIFs, and continue to do so in business interests. These 2012. aren’t gifts we give often. This kind of support Legacy They are exceptional gifts for charity is unprecthat stand out for their edented in our history. size and level of commitWhile generosity and Malcolm D. Burrows ment. belief in community Head, Philanthropic Frequently, these are are primary motivaAdvisory Services gifts that are planned tors, the greatest malcolm.burrows@scoahead of time and realenabler are the many tiaprivateclient.com (416) ized through estate plans. new tax incentives 933-2351 Paul C. Nazareth While this sounds designed to increase Manager, Philanthropic exciting in theory, a good capacity for Canadian Advisory Services paul.nazfinancial and estate plan philanthropy. areth@scotiaprivateclient. that includes charitable In introducing these com (416) 933-3197 giving can be difficult to incentives for charita3800 - 40 King St. West. implement on its own. ble giving, the Federal Toronto, ON M5H 1H1 It is first essential to government has given Toll Free 1-866-216-2116 put personal and famtaxpayers a choice. It Lauren Storer ily needs at the centre of is a choice about how Manager, Philanthropic the planning process and individuals wish to Advisory Services then consider giving. support society and lauren.storer@scotiapriCharitable gifts are the amount of tax they vateclient.com irrevocable – once given, wish to pay. they are not returned. With these new Also, it is sometimes incentives, it is now possible to eliminate the taxation on 75 hard to choose charities and commit large gifts. Working with a team of per cent of income except in the year of death and year prior to death, when experts from across the Scotiabank Group, we can work with you to intethis figure jumps to 100 per cent. grate philanthropy into your financial Everyone still has to make a conor estate plan to ensure that all your tribution to society, but the decision goals and objectives are considered. about where the contribution goes is
Project
Saint Vincent de Paul
Prince George
St. Vincent de Paul offers meals, hampers and many support services to those in need in our community. The St. Vincent de Paul store provides good quality goods for reasonable prices and all proceeds are used to support the other services offered. St. Vincent de Paul depends on the generosity of many to support those in need. Please think of the good your donation to St. Vincent de Paul will provide.
STORE 1180 Third Avenue, Prince George, BC
DROP-IN CENTRE 1220 Second Avenue, Prince George, BC
The Saint Vincent de Paul Society Box 1617, Prince George, BC V2L 4V6
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Think the kids will get it all?
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Camp Trapping – 40 years of continuous service for youth in a supportive, caring, structured environment. Our program provides a life changing opportunity and service. You can provide a gift that allows us to continue to enhance the experience for these young men.
A gift to Camp Trapping can help us to continue to change lives – forever. #130-1460 Sixth Avenue, Prince George, BCV2L 3N2 Phone: (250) 563-9159 Fax: (250) 563-9154 email: cats@bcgroup.net
Cariboo Action Training Society
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here appears to be a common theme that on the death of an individual, their total Estate will be go directly to their child or children named in the Will and therefore it is not necessary to consider any charitable bequests. This is far from the truth as most individuals die holding growth type assets such as a residence, stocks, bonds etc. Under the Income Tax Act, on the death of the taxpayer, all property held by the deceased, are deemed to be disposed of immediately prior to the taxpayer’s death, which may trigger substantial capital gains depending on the size of the Estate. One half of the capital gains (referred to as taxable capital gains) incurred are taxed on the taxpayer’s terminal T1 Return and can result in a substantial tax owing as at the date of death. One way to eliminate this tax liability is to consider a charitable bequest. As the Will does not take effect until the death of the testator/rix, any gifts made to a registered charitable beneficiary are consider revocable and can be changed at any time. The charitable gift generates a non-refundable tax credit that can be claimed against tax owing. Depending on how the bequest is structured, a gift at death can be claimed against up to 100% of the deceased’s net income on the terminal T1 Return to the date of death. If the bequest under the Will exceeds the taxable income reported on the terminal T1 Return any excess can be carried back to the prior Personal Income Tax Return and offset any taxes owing on this return.
A bequest can be for a specific amount or property or can represent a share of the residue. Bequests are exceptional gifts that stand out for their size and as a once in a lifetime gift they require more considerable planning. It is also possible with the appropriate planning to include a Estate Tax Eliminator Clause which instructs the Executor to make a gift to a specified charity that is enough to offset the taxes owing. Individuals are now having children later in life, which means that their children are financially established when their parents pass away. For many individuals this may mean that gifts to charity to offset taxes on assets held at death will not impact too strongly on the share a child receives as beneficiary of their parent’s estate. ffffCharitable planners are not suggesting that families exclude their children as heirs of their Estate, but consider making a charitable gift that may offset taxes and leave more of the Estate intact for their children. Although there will be expenses that cannot be eliminated at death, such as Probate fees etc, where possible the individual should consider any type of estate planning that you enable them to leave a greater share to their family. In conclusion, we all give back to society in one way or the other. We can either do this by paying taxes and the Government decides how that money is spent or we can give a gift to a charity or charities that will eliminate these taxes and have some input into how that money is spent.
The Fraser-Fort George Museum Society PO Box 1779, Prince George British Columbia V2L 4V7 Museum and Science Centre
Contact: Tracy Calogheros CEO tracy@theexplorationplace.com 250-981-5910
CRA Number R118930700 BC Society Act # S-9084
Your gift will shape the future
yesterday,today today && tomorrow tomorrow ~~ making making history history together together ~~ yesterday, www.theexplorationplace.com
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Generosity leads to goodwill for St. Vincent de Paul drop-in centre Teresa Mallam arts@pgfreepress.com
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ernie Goold, president of the St. Vincent de Paul Society, and her husband Jack Goold have been helping people in need for as long as they can remember. They have seen the changing face of poverty in Prince George over the years and have tried their best to stretch the money they receive from donations and small amounts of funding to make life better for those in need. They do their best work perhaps at St. Vincent de Paul’s drop-in centre at 1220 Second Ave. If not for that centrally located place, many local people who have fallen on hard times would go hungry. However, Bernie says they owe a debt of gratitude to a Good Samaritan and a centre volunteer who gave the society a financial leg-up over a decade ago. Because of their generosity, many more people now have a decent place to go where they can sit down in comfort and have breakfast, hot lunch or snacks. Their former drop-in building on Third Avenue was cramped for space and short on any modern conveniences – like an efficient freezer to keep food. In 2000, the society began looking for bigger quarters. “We didn’t have a lot of capital back then – we were operating on a wing and a prayer, then suddenly we got a call from a lawyer who said a businessman in Prince George had died and left us
TBJ
Bernie Goold $50,000 in his will.” It was a complete surprise to them, said Bernie. The news was soon followed by another unexpected act of kindness.
the time of month. The numbers peak “Within three weeks of getting towards month’s end as people, espethe first $50,000, one of our volcially seniors, find it hard to buy grocerunteers was left money and she donated $50,000 to St. Vincent’s. So ies on limited funds. “The face of poverty has changed drawe had $100,000 for the down paymatically in the past few years,” said Berment on a new building – which nie. “There are so many people now who was nothing short of a miracle.” Had the generous monetary gifts are just living on the fringe, teetering on homelessness. They may have jobs but not come along when they did, they don’t earn enough to pay their bills. the society’s options for moving They may be seniors on a fixed income would have been restricted, she who have a place to live but simply can’t said. afford to feed themselves. So they come “We would have had to settle to the drop-in centre at the end of the for a much smaller building and month to eat and get by until their [penthen four or five years down the sion] money comes in.” road, we would have been looking St. Vincent de Paul Society always for somewhere else to go. When welcomes new volunteers and monetary we first opened our doors, we had donations. about 60 people and, as we all The local society runs the drop-in cenknow, those numbers have grown tre at 1220 Second Ave. and a thrift store substantially.” at 1180 Third Ave. For more information Their present location is four times the size of the old place, says on how to help the society with its work, phone 250-564-7871. Bernie, and the kitchen, the walk in cooler and the freezer are “much, much better not just Lawyers – Notaries Public in size but they are better equipped. All Wills | Estates | Powers of Attorney our renovations were Representation Agreements done by volunteers, even the flooring, so it was just incredible.” The drop-in centre Scotia Bank Building on Second Avenue serves 614 - 1488 - 4th Avenue Telephone: (250) 563-7741 meals for 250 to 300 people Prince George, BC V2L 4Y2 Fax: (250) 563-2953 per day, depending on
LLP Accounting for Your Future
We are a team of dedicated professionals accounting for your future
Helping people since 1957 7
Make a lasting impact on the lives of people in your community.
Leave a legacy of hope for a better future.
TBJ can provide you with advice in relation to Estate and Legacy Gift options and tax planning.
It feels good to give. Your Community – Our Community 950 Kerry St., Prince George Office: #300 - 180 Victoria Street, Prince George, B.C. V2L 2J2
Tel: (250) 564-2014 Toll Free: 1-888-564-2014 Fax: (250) 564-5613
TBJ Terlesky Braithwaite Janzen LLP
Call us.
Prince George, BC V2M 5A3
Ph: 250-564-6408 Visit our website
www.aimhi.ca
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Carefree Society is your local Handy Dart and Community Bus operator We provide specialized door to door transportation, operating as a shared taxi. To use our service you must have a disability that prevents you from using the city bus. Carefree is dedicated to our Community, continually fund raising for bus replacement and extra service demands. A Legacy gift will ensure our ability to serve your community.
Carefree Society 2832 Queensway St. Prince George, BC V2L 4M5 Charitable Tax Number 11883-8358-RP001
www.pgfreepress.com
The estate tax eliminator clause
and attached it to her will as a codicil. Alice Trickett and her husband moved The clause instructed her executor to to a farm in Aldergrove soon after they calculate the taxes owing at her death were married. and in the previous year, and They enjoyed their home to make charitable donations immensely and raised just large enough to eliminate three lovely children there. those taxes owing through Although motherhood her estate. The wording in occupied much of each day, this clause would ensure the Alice carved out special majority of her estate would time to support community pass to her own family, and causes both financially and the government’s share would as a volunteer. be replaced with the charities Alice’s life changed forshe cared about. ever when she developed The Canadian Cancer Socibreast cancer at age 57. Alice Trickett ety recognized that Alice’s After her cancer diagno-Estate tax eliminator clause strategy – replacing taxes sis in 1986, she re-focused with a gift to charity, without her energy on the cancer unduly impacting family and cause. She became a doorother loved ones – might appeal to many to-door canvasser, collecting donations others, so the Society asked an estate lawto the Canadian Cancer Society for over yer to review and re-word Alice’s codicil 20 years. Cancer invaded her life again, with a view to sharing it with the general reoccurring just two years later. Alice public. underwent another round of treatment The “Estate Tax Eliminator Clause” can and survived. Cancer stole all three of her be used by people who wish to consider brothers. Alice’s granddaughter Crystal this type of strategy when preparing their was diagnosed with lymphoma and surwills. While many people can use this vived a bone marrow transplant. Sadly, clause effectively to reduce their estate Alice passed away in 2008. taxes, the Canadian Cancer Society cauPrior to passing, Alice had met with tions that people preparing their will a lawyer to update her will. In preparshould first review this strategy with ing her will, her first priority was to both legal and tax professionals to deterremember her family. But she was also concerned about the high estate taxes she mine its suitability for each individual’s unique personal situation. would pay on her passing. These would To view the Estate Tax Eliminator be taxes the government might take from Clause, click here, or contact Tim Staunher estate. She wanted some assurance to ton at tstaunton@bc.cancer.ca, 1-800-663prevent this from happening. So, on her 2524 (ext. 299), or 604-675-7111. own, she created an innovative clause
What is a great legacy of a life lived? Helping future generations reach their full potential.
Consider a legacy gift to UNBC that will touch the lives of students, the future alumni who will strengthen northern communities. Forever. Giving can be as simple as a bequest to UNBC in your will or trust. Consider naming UNBC as a beneficiary of a life insurance policy or investments. Talk to us today about how you can ensure your wishes endow future generations. Call 250-960-5750, ask for Kathie or email scoutenk@unbc.ca 2012 Political Science Graduate Naomi Findlay of Burns Lake
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Strengthening the foundations of community
n 1964, the Family YMCA of Prince George was founded by a group of civic-minded residents committed to creating a vibrant community by incorporating the YMCA values of respect, honesty, caring and responsibility. “The important thing to remember about the YMCA, says Mark Miller, Family YMCA Chief Executive Officer, “is that it joins a community at the invite of its citizens. “When a city reaches a certain stage in its population and economy, the next step seems to be establishing a YMCA – confirming the community’s maturity and optimism for the future.” From a newspaper editorial in 1958 titled “We Can’t Afford To Be Without YMCA” to the construction of the Massey Drive facility in the early 1970s, to our current summer camp and child care programs, the Family YMCA of Prince George has mirrored the growth of Prince George from small town to hub of the north. Almost 50 years ago, hundreds of donors visualized a healthy Prince George with the Family YMCA playing an integral role. As the organization comes up on the next fifty years, preparation is even more critical and strategic planning is vital. “Our Board and staff are committed to growing the Family YMCA to
as large and involved as possible,” adds Miller. “I think we can safely say that everyone has been touched by the Family YMCA in some form or another since 1964.” As one of Prince George’s busiest charities, the Family YMCA has assisted thousands of individuals realize their philanthropic goals. “We have a solid track record of delivering lasting personal and social change and our donors are confident
The Prince George Free Press is pleased to help the people who help our community.
that their donation is used responsibly and for the greatest community good. Estate planning presents a unique opportunity for donors and their families because it creates a long-term legacy as well as tax benefits,” says Miller. Stocks, real estate, will bequests are stewarded carefully and often grow in size over the years. For example, the Vancouver YMCA was included in the will of Noel
Caryll – a long-time YMCA member who left a donation of just over $270,000 to the YMCA when he passed away in 1984. Today that donation has grown to over $1million! Though the world may be unpredictable, one thing remains certain – the YMCA is and always will be, dedicated to building healthy, confident, secure and connected children and youth, families and communities.
Prince George Needs her Creativity!
It is a privilege to be providing over 28,000 Prince George households with information on what’s happening in our caring city. Delivering Your Message Home Creativity is the core of her ability to come up with innovation and solutions to problems.
1773 Lyon Street, Prince George 250-564-0005
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Your legacy is an investment in the young minds that will help the community prosper in the coming decades. Any contribution you are able to make is a generous one.
Contact: Peter Thompson, Managing Director Two Rivers Gallery 725 Civic Plaza Prince George BC V2L 5T1 Tel: 250-614-7803 peter@tworiversgallery.ca
Prince George Regional Art Gallery Association CRA# 107858763RR0001
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A charitable remainder trust is great in the right situation
A Charitable Remainder Trust is a complex gift, but a great tool for the right donor in the right situation. With a Charitable Remainder Trust, you sustain the benefit of an asset but transfer the formal ownership of this asset to your charity. Once all of the requirements for making the gift are satisfied, a tax receipt can be issued for the value of the residual, or remainder, that will ultimately pass to the charity. Is a Charitable Remainder Trust right for you? • A Charitable Remainder Trust may be a good gift for you if you are 70 years of age or older and .. • Are an investor who is comfortable with complex tax arrangements. • Have an asset (or income) that you want to maintain for the remainder of your life. • Have a good financial advisor who is comfortable using trusts. • Can afford to lose control of the capital portion of an asset. • You are concerned about probate or estate issues (like estate freezes). Considerations about a Charitable Remainder Trust
Prince George & District Community Arts Council 2820-15th Ave., Prince George, V2M 1T1 Contact: Wendy A. Young CRA #: 118870104
The gift of a Charitable Remainder Trust is irrevocable. Once you have made this gift, you cannot change your mind. Because of the irrevocable nature of this gift, you must get independent financial advice before deciding to commit to this kind of gift. The process for accepting this kind of gift is complex. It may turn out, after investigation by your financial advisors and Charity that this gift is not the best choice for you. What are the benefits?
• You can receive a discounted tax receipt today. • You can continue to enjoy the benefits of your asset. For example, you can continue to live in your home. • You can make a gift that is not subject to probate. • You will receive a charitable tax receipt, which will reduce taxes on other sources of income. What will be your tax receipt? The size of the tax receipt is determined by a set of formulas and actuarial tables that take into account factors such as your age, payment schedule and whether you are male or female.
How you can truly make a lasting difference Ghandi once said that to truly make a difference each of us must “be the change we wish to see in the world”. There is no more thoughtful and impactful way for each of us to realize change than to thoughtfully leave a legacy gift to a charity that you trust. By leaving a bequest to Prostate Cancer Canada you can make a significant difference for Canadian men who face the threat of this disease you may in fact help move us forward in the search for a cause, the improvement in treatment options and eventually a cure for prostate cancer. What a transformational change that would be. Charitable legacy can also help you leave more of
your estate to your family be decreasing and even eliminating the estate tax that must be made. Your lawyer or financial advisors can be a valuable resource in helping you and your family make those decisions. We are also here for you to discuss options such as the tax eliminator clause or how a gift of capital assets might be the best option. However you and your family decide to make a legacy gift, know that future generations of men will be forever grateful for your thoughtfulness, your generosity and the change you will help make possible. For more information Contact Debra Bond-Gorr, CFRE 1.888.255-0333
We Believe ... Investing in Northern BC Communities We believe in our community. We believe that its success depends on the people who live in it. That everyone has something to contribute. That everyone deserves respect. That everyone’s potential can be realized. That diversity is vital. That every person has value. That everyone needs help and everyone can offer help. That a safe, supportive community is everyone’s responsibility. We believe in possibility. We believe in our community. We believe that its success depends on the people who live in it. That everyone has something to contribute. That everyone deserves respect. That everyone’s potential can be realized. That diversity is vital. That every person has value. That everyone needs help and everyone can offer help. That a safe, supportive community is everyone’s responsibility. We believe in possibility. We believe in our community. We believe that its success depends on the people who live in it.
We Believe.
For more information on volunteer opportunities and United Way’s impact & activities in your community, please call 250-561-1040 or visit our website:
www.unitedwaynbc.ca
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Charitable Leadership Working for the common good Proudly Supporting: ALLENGE ALL CisH B E S ing to. A m co B world 613-7492 4V9 250WORLD s what the ... it’ da, V2N The WBC , B.C., Cana ball.ca ince George et www.worldbase e Cres., Pr .n us tel ll@ ba worldbase
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ball World Base you, behind the y to write to g the team rt of leadin is a letter I am so happ joyable pa s en thi st d mo an pport – su ve One of the r ha fo d e tud ry start, an ters of grati from the ve contributions, is writing let it with your staff. tive of this of Challenge are event. Your and suppor g the level you will sh en on-board this major community with raisin be lp ve he and I hope ha to u er you ch Yo ibutions to done so mu on many things, wheth r your contr orge, have fo me t Ge e to ou or inc od Pr . vis all denitely sto unabashed pride for d valued ad iated by us pleasure ur ry trusted an eatly apprec an absolute ks for including yo ve been a ve the community is gr but it’s been Dan, you ha years. Than rship in sufcient, de is few t st lea this event. tha pa ur t se yo ub . I do ily the ll in Prince not, and n, thanks.. ow your fam rtant this is to baseba know it or Again, Da like Cuba, tting to kn po has been ge derstanding how im seeing teams it s, as me t ga jus ed the th you, t, for un joy wi en en u am ing st! yo rn rk be wo I hope the tou ll. All the ibution to the whole. libre baseba your contr mmunity on the high-ca d to the co could watch George, an – Glad you . etc A, Japan, US ee, tire committ lf of our en and on beha Sincerely,
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• • • • • • • • • • • • • • •
Commonwealth Financial Hockey Club PG Community Foundation Junior Achievement of BC Children’s Variety Club Alzheimer Society of BC PG Rotary Auction Canuck Place Canadian Legion Poppy Fund Mardi Gras Snow Daze PGSS Senior Volleyball Healthier U Awards Festival of Trees World Baseball Tournament College of New Caledonia Spirit of the North Healthcare Foundation • PG Youth Soccer Association • Ringette • JCI Prince George
A heartfelt than k you to: • Commonwea lth Mortgage Together, w e make a d iffere
nce
n, Chair Jim Swanso ge ball Challen World Base Citizen Field e Prince Georg
udly supports Commonwealth Financial pro Pee Wee Hockey.
Vancouver Canucks Alumni Garry Monahan , Eddie Hatoum & Dennis Kearns enjoying the Commonwealth Cup. The Commonwealth Cup has raised over $250,000!
Prince George
“Some men see things as they are and say why - I dream things that never were and say why not.” George Bernard Shaw We agree with Mr. Shaw. At Commonwealth we dream of a world without poverty. A world without sickness. A world where every child has a chance to grow up in a wholesome, happy environment. We are proud of our contribution, but there is still much to be done. Commonwealth Financial is an authorized representative of The Canada Gift Builder Program. Working with a team of experienced financial professionals, we can provide timely and thoughtful strategies that can help you, help your favorite charity. If you are interested in making a difference to those that need it most, we would be honoured to work with you. D. R. McLaren President
COMMONWEALTH FINANCIAL Mortgages • Investments • Insurance
We Are the Experts in Planned Giving 250-960-2233
THE COMMONWEALTH BUILDING - 1448 - 6TH AVENUE
www.mycommonwealth.ca www.commonwealthcup.ca www.commonwealthhealth.ca
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Charitable donations Top 10 Canadian tax tips
1. Credit, Not a Deduction
only the amount over and above the cost of the dinner itself qualifies for the receipt. Participants at such events should get a receipt for this amount. Donations are calculated on Schedule 9, and then on Schedule 1 (Federal Tax) and Form 428 (Provincial Tax).
Contributions can be made to many worthwhile non-profit organizations, but only donations to registered charities qualify for an income tax credit. Although they are often called “tax deductible,” they qualify for a nonrefundable tax credit, not a deduction. For more information, check the Canada Revenue Agency (CRA) Donations and Gifts, which is Line 349 of the General Income Tax and Benefit Guide. In general, you can get a credit for all donations to registered charities, up to 75 per cent of your net income. In the year of death (and going back one year), the limit is 100 per cent of net income. Payments for raffles, dinners, and other events are not usually eligible for an income tax receipt. In the case of a payment for a dinner or similar event,
2. Keep Receipts The receipt should have the charity’s name and registration number, date, serial number, amount donated, donor’s name, and be signed on behalf of the organization. The receipts also should have the address of the Canada Revenue Agency’s website address www.cra-arc.gc.ca/charities/. Anyone can look up information on this website about charities in general, or any specific registered charity. If paper filing your income tax return, you need to include your receipts. If electronically filing with some sort of income tax software, save your receipts in case CRA asks for them later.
OLE H. SORENSEN, E.P.C. PRINCIPAL
935 Brunswick Street Prince George, B.C. V2L 2C3
SORENSEN FINANCIAL SERVICES INC.
Ph: (250) 561-1011 Toll Free: 1-800-561-1024 Fax: (250) 561-1037 e-mail: ole@sorensengroup.ca
3. The $200 Rule To encourage donations, the federal and provincial governments provide a two-tiered credit system. Add up all your donations. The amount up to $200
qualifies for a tax credit at the lowest tax rate. The amount over $200 qualifies for a credit at the highest tax rate. When the federal and provincial programs are combined, taxpayers reduce their taxes by about 25 per cent of the total donated up to $200. (The exact amount varies by province.) For the amount over $200, the saving is about 45 per cent, which again, varies by province. Alberta provides an extra incentive; although its highest tax rate is only 39 per cent, the charitable credit is a generous 50 per cent. Because the credit is higher for the amount over $200, there is a benefit to combining spouses (Tip # 4), and to carrying forward (Tip #5).
4. Combine Spouses Donations made by one spouse / common-law partner can be claimed by either one. To maximize the credit, all donations should be lumped together. It doesn’t matter by which person, they can use the credit as long as they pay taxes.
5. Carry Forward Some or all of your donations may be carried forward for up to five years. This should be done to take advantage of the higher credit over $200. Also, donations made in years of low income or when other credits are used (so no taxes would be paid anyway) should be carried for-
ward. Finally, any donations over the 75 per cent net income limit should be carried forward. Many computer tax programs automatically suggest a carry forward when no federal taxes are payable. Check if provincial taxes are still payable; if so, override to include donations to reduce provincial taxes also to zero.
6. Donations at Work Remember to claim donations made through your workplace; these are recorded in Box 46 of the T4 slip from your employer. As well, include donations made through pension or other income (Box 46 of T4A slips). Also, less commonly, through investment income on Box 48 of T3 slips, Box 103 of T5013 slips, and Box 13 of T5003 slips.
7. Donations of Stocks New rules encourage the donation of publicly listed securities (stocks) that have appreciated in value. There is now no capital gains tax on such gifts. This could be quite a benefit, as you get the tax credit on the higher amount, but do not have to pay any tax on your gain. turn to PAGE 12
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Gifts to the Canadian Cancer Society fund research and prevention initiatives and help families like the Kents create life-changing memories at Camp Goodtimes.
Join the fight. Leave a legacy. Did you know that a legacy gift to the Canadian Cancer Society can fight cancer and protect your estate from tax? The Estate Tax Eliminator Clause can reduce your final taxes to zero.
Ray Noonan, STI, PFP, MBA Northern BC Region 390 Victoria St, Prince George BC 250-981-3140 ray.noonan@scotiaprivateclient.com TM
Trademark of The Bank of Nova Scotia, used by its affiliates under license.
You can help fund the best cancer research, prevention and support programs. For your copy of the Estate Tax Eliminator Clause and a Personal Estate and Will Planning Guide, please contact Toni Andreola at tandreola@bc.cancer.ca or call 1 800 663 - 2524.
cancer.ca
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from PAGE 13
Check with your charity about how to make such a gift. For more information, see the CRA’s Gifts and Income Tax, and Gifts of Capital Properties to a Charity and Others, as well as Capital Gains.
8. In-Kind Donations A recent survey by Statistics Canada found that almost everyone (94 per cent of those aged 15 and older) makes financial or in-kind charitable donations. In-kind donations are commonly items such as clothing, toys, household goods, or food. Other examples include valuable art or antiques. CRA does allow a tax credit for gifts of property (but not for gifts of services). In order to get a tax credit for in-kind donations, you must have a receipt from the charity showing the “fair market value” of the gift. In general, don’t expect a receipt for donations of old clothes, furniture, etc. You may be able to get a receipt for donating more valuable items. For anything worth more than $1,000, CRA usually expects an independent appraisal. For more information, see the CRA’s Gifts and Income Tax, and Gifts of Capital Properties to a Charity and Others, as well as Capital Gains.
“While it is well enough to leave footprints on the sands of time, it is even more important to make sure they point in a commendable direction.”
– James Cabell
9. Avoid Scams Some people donate to charities with the temptation of receiving credit for more than they actually donated. Do not run the risk of having all your donations disallowed. If it seems “too good to be true,” it probably is. Give to give, not just for an inflated tax break.
10. Special Situations There are special rules for donations of cultural and ecological gifts, and for artists who donate from their inventories. If you have partnership income and receive a T5003, T5013, or T5013A slip, then see Charitable Donations and Gifts- Schedule 2. For these situations and for more information on the above tips, see the CRA booklet Gifts and Income Tax, and a list of other publications.
More Tips: Plan Ahead – Statistics Canada found that donors who plan ahead give more than others. Think about a set amount of your income, regular monthly contributions, and bequests in your will (your estate will get the tax credit in the year of death). Donate Online – You can donate easily to any of thousands of charities through CanadaHelps.org, itself a registered charity. They issue you a receipt and forward your donation to the charity you specify, less a three per cent transaction fee. Political Donations – Keep receipts from donations made to political parties separately. They qualify for a different income tax credit. Check out Political Contributions: Top Ten Canadian Tax Tips.
Your gift lives on…
A planned gift makes a difference for low-income working families and our community. By supporting Habitat for Humanity, you’re helping us to build affordable homes for families to purchase. This builds pride and creates more opportunities for their young children through the stability and security of home ownership. Your gift lives on with 100 percent of your donation going to the Habitat build programs helping to break the cycle of poverty housing.
When making the choice to leave a Planned Gift, the impact your decision will have on the lives of those who come after you is priceless. Through a life insurance policy, bequest, stocks or annuities – you can choose how your legacy gift is administered, and to what program it benefits.
Families thrive. Communities prosper. Everyone wins.
100% of any gift you leave through the Spirit of the North will stay in your community and can be allocated for any of the following treatment needs: · · · ·
For more information on Planned Giving with Habitat for Humanity, please contact: Jo-Ann Pickering Habitat for Humanity - Prince George 220 Queensway, Prince George, BC V2L 1L2
Prince George
Cancer Diabetes Arthritis Ostomy
· · · ·
Heart · Palliative patients Stroke · Seniors Care Mental Health & Addictions · Paediatrics Alzheimers and many others….
Choose to make a Planned Gift to the Spirit of the North Healthcare Foundation. Contact us to discuss the options that are available, and what might be best for you.
1475 Edmonton Street, Prince George, BC • V2M 1S2 Telephone: 250.565.2515 • Fax: 250.565.2595 Toll-Free: 1.877.565.2515 E-mail: spiritofthenorth'northernhealth.ca
www.spiritofthenorth.ca
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Legacy Project - Free Press
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Big legacy and smaller charities
By Malcom Burrows
A Gift that Gives More!
Join our Sustaining Supporter Program Your Monthly Gift will support our future.
3089 Clapperton Street, Prince George 250.563.2551 www.hospiceprincegeorge.ca
Honour your loved ones memory forever through a CNC or bursary scholarship in their name. Your donation will help the student of your choice continue their studies, while letting everyone know about the qualities of your special friend or family member. For more information, call Annette Stevens, CNC Fundraising & Alumni Co-ordinator, 250-562-2131, ext. 5313
College of New Caledonia B R I T I S H C O L U M B I A • C A N A D A • W W W . C N C . B C . C A
R
ecently a client was agonizing about supporting two of his favourite charities in his will. They were smaller organizations at which he had served as a director. He was procrastinating about his estate plan because he knew the size of the contemplated gifts –about $150,000 per charity – may overwhelm the small entities. He was torn between doing good and being practical. One of the challenges of leaving a significant legacy is making the bequest match the size and capacity of the charity. Two-thirds of Canada’s 85,500 registered charities have annual revenue of less than $100,000. Smaller charities are volunteer run. They do great work, but often lack paid staff and experience with investments. The traditional method of addressing this situation is to put the funds in a charitable trust for professional management, asset protection, and a regular income stream to charitable beneficiaries. A contemporary solution is a donor-advised fund in a public foundation, such as a community foundation. Donor-advised funds are “giving accounts” that enable the donor (and potentially family members in the next generation) to make recommendations about the use of the funds. Most donor-advised funds are
endowments and only pay out income from invested capital. Donor-advised funds have become recognized for their flexibility, simplicity and cost-effectiveness. Our client, however, didn’t want a perpetual endowment after he was gone – just a way to provide annual donations for 10 years to his two charities. He wished to provide support each year that will be consistent, not lumpy. To accomplish this goal he created a “spend down” legacy fund at Aqueduct Foundation (www.aqueductfoundation.ca) in his family’s name. As a former board member, he was compelled by the idea of providing consistent funding that would not create overdependence. He also knew the annual grant was valuable enough to improve the charities’ flexibility and extra help in delivering their missions. The result: a personal legacy that is practical and enabling. Malcolm Burrows is Head, Philanthropic Advisory Services at Scotia Private Client Group. He is a nationally known philanthropic planner with over 20 years of experience with charities and Scotia Private Client Group. Scotia Private Client Group is the largest national service provider to private foundations and operates Aqueduct Foundation, a public foundation with donor advised funds. www.scotiaprivateclient.com/philanthropy.
Your legacy gift will provide hope and support to women and children. Providing programs and services since 1979: Children Who Witness Abuse, Counselling Services Courtwork, Justice Advocacy, Transition Houses Victim Services, Women’s Outreach, Young Parent Program and Young Babies Services
Prince George & District
ELIZABETH FRY SOCIETY 1575 - 5th Avenue, Prince George, BC V2L 3L9
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Spend-down funds provide ongoing support to organizations of choice
R
ecently, one of my colleagues was working with a retired public servant on her estate plan. She is exacting, intelligent, and has a wonderful way with words. She plans to give the residue of her estate to support eight charities. Most of these organizations are small and volunteer-run. One of her primary concerns is that her charities would be receiving gifts that were large relative to their overall annual budgets. She worries about giving them too much all at once. She is concerned that they will need ongoing funding. She had explored the idea of establishing an endowment to support her charities, but thought perpetuity was too long and the annual payout too little. “I want to grow fruit,” she passionately explained, “not just be the morning dew that keeps the grass green.” For her, the endowment payout was the morning dew. Is there any way, she asked, to have a legacy fund at Aqueduct Foundation that would pay out all the funds to her chosen charities over 10 years? Yes, indeed there is. Without prompting from us, our donor described what we call a “spenddown” legacy fund. A spend-down fund functions like an annuity.
After setting up the fund by deed during life, the account is funded after the donor ’s death with a bequest. The fund distributes all capital and income over a set term – for example, 10 years – and then ceases to exist. In Canada, few charities offer spenddown funds as an option. Spend-down funds sit right in the middle between the two most common ways of structuring a bequest. At one end of this spectrum there is the outright gift that pays out immediately after death; at the other end there is the endowment that is invested for perpetuity to distribute a minimum of 3.5 per cent per annum. The spend-down fund provides the donor ’s charities with significant, steady support for a defined period with the goal of starting something new, addressing a capital need, or just to operate well. Spend-down funds also provide checks and balances. Our donor wants to ensure her gift will provide the greatest benefit to the charities, so she did not restrict the use. She stipulated that each charity make a short annual proposal to make everyone take the process seriously and to ensure the funds are well used. The spend-down fund will be named after her and grants will be
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made in her name each year. With the option of appointing a successor advisor at Aqueduct Foundation, children or other family members could be involved in this process. Reviewing proposals from the charities and contributing to the conversation would allow the next generation to have a relationship with the charity and participate in the legacy. To our donor, the spend-down fund
struck the perfect balance of “growing fruit” in the community (having an impact!) and creating a personal legacy that represents her values and wishes. Malcolm Burrows Head, Philanthropic Advisory Services Scotia Private Client Group malcolm.burrows@scotiaprivateclient. com www.aqueductfoundation.ca
‘one seed at a time’ a growing legacy
Educational Display Garden on the University of Northern British Columbia Campus Project of International Status to Develop a World Class Botanical Garden in Prince George Providing horticultural and arboricultural education for the public
DAVID DOUGLAS BOTANICAL GARDEN SOCIETY www.ddbotgarden.bc.ca
Sometimes, what changes remains the same. The BC Paraplegic Paraplegic Association is now:
Your gift will help ensure that British Columbians with spinal cord injury (and related disorders) & their families will continue to receive the essential support and services needed to help them adjust, adapt and thrive - whether they are dealing with a new injury or struggling with the ongoing challenges of living and aging with a physical disability. For more information, visit www.sci-bc.ca or call 1-800-689-2477 Please note: gifts should be made to our legal name, which remains Canadian Paraplegic Association (BC)
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Legacy Project - Free Press
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Some great tips for protecting your inheritance
hile it is not possible to “rule from the grave”, many people wishing to ensure that the legacy they have built up during their lifetime lasts, try all manner of things to ensure that the next generation does not foolishly spend it away. While you cannot restrict completely what or how much a beneficiary will spend, there are a few basic tips to ensure that your inheritance is protected for future generations.
C D C
One of the first things to consider in ensuring that your estate is wound up properly is to give careful consideration to the choice of your executor. The executor of your estate is responsible for ensuring that numerous tasks are completed before a distribution can be made to your beneficiaries. Some of the things they are responsible for range from submitting your will to probate, gathering in and liquidating assets, ensuring that all taxes are properly remitted to the tax department, preparing
The Child Development Centre Of Prince George and District
Your Legacy will mean the world to children of all abilities. Developing potential takes the kindness of many. When you remember the Child Development Centre in your will, you’ll be shaping the future of the children with developmental challenges in your community.
Leave a Legacy to:
The Child Development Centre of Prince George and District
Givin g Something Back The Prince George Community Foundation can serve as your one-stop gift-giving centre. Whether your interest is in arts & culture, education, environment, health, social services and sports & recreation, or a specific charity of your choice, we can direct your donation to a fund that satisfies you as a donor. Donations of all kinds are graciously accepted: cash, cheque, credit card, life insurance, securities or through estate planning. We are here to see that your gift-giving wishes of today become a reality in the community forever.
income generated from that gift or the an accounting to the beneficiaries of all appreciation or growth in value of that monies received and disbursed, etc. gift. Ideally, your executor should be someA simple way to avoid this, is to one sophisticated enough to understand include in your will what lawyers will the legal proceedings, the tax implicaoften call a “Family Law Act clause.” tions on your estate, the management of The insertion of this clause will ensure the ongoing investments. that not only will the actual gift be proA knowledgeable and experienced tected from division, but the income and executor can actually protect and/or growth of that asset will increase the value of your also be protected from estate through proper Your division should your tax planning. Perhaps, beneficiary separate or in scenarios where the divorce. estate is complex and • Give careful In attempting to ensure family members remote, consideration to your that your inheritance thought should be given choice of executor lasts, one should also give to whether appointing • Your will should provide thought to providing for Scotiatrust as corporate a gift to an alternative ongoing trusts in the will. executor is warranted for beneficiary Whether your intended your own estate planning. • Consider an ongoing beneficiaries are spendOne of the most comtrust to ensure that your thrifts, financially immamon mistakes made inheritance lasts ture or whether they sufwhich could have an fer from a disability and adverse effect on your are receiving Ontario Disability Support intentions is the failure to provide for a payments, you want to ensure that the gift over, both with respect to legacies gift you leave not only lasts but does not and to the residue of your estate. have adverse affects for those disabled A legacy is a specific gift left to somebeneficiaries who would otherwise be one under your will, most commonly in disentitled if the trust is set up impropthe form of a cash gift. erly.Here again, special consideration Your will should always provide for should be given to choosing a trustee. a gift to an alternate beneficiary in the Ideally it should be someone who is event that the original beneficiary has able to invest the capital of the gift prupredeceased you. dently and who will live and be capable The failure to do so will result in that for as long as their obligation lasts. gift failing and the proceeds becoming For these types of trust, the services of part of your estate when your intent a Scotiatrust as corporate executor and could have been to benefit someone else. trustee might also be sought. Even more catastrophic to your estate By leaving funds in trust, you can plan is the failure to name alternative beneficiaries to inherit the residue of your ensure that the inheritance will be staggered over time and even protected estate. entirely by the proper structuring of In basic terms, the residue of your trusts. estate is the pool of funds gathered after You can set out whether only the all debts, taxes and legacies have been income generated from the invested paid. For most people this is the bulk of their inheritance or whether capital will be paid out and if so, for what purposes. estate. The last piece of advice I would offer The failure to name an alternative will is to seek professional help in structuring result in an intestacy, so that the rules of intestacy under legislation will determine your estate plan and will. Be wary of drafting your own will or who inherits, giving absolutely no effect of using ready-made kits so that mistakes to your true intentions. are not made which obviate your true Another frequently mentioned conintentions. cern is that of protecting a beneficiary’s Seek the advice of your lawyer, inheritance from that person’s spouse in accountant and other financial advisors the event of separation and/or divorce. to ensure that your plan will be carried In Ontario, the gift you leave to your out according to your wishes upon your child or any beneficiary is protected by passing. legislation from property division should This article has been prepared by the Scothat beneficiary later separate or divorce. tiabank Group. However, what is not protected is the
inheritance
PO Box 1204, Station A 2880 15th Avenue Prince George, BC V2L 4V3 250-562-7772 www.pgcf.ca pgfoundation@telus.net Sponsored by Ray Noonan Scotia Private Client Group
We provide the opportunity to make a lasting charitable donation to enhance our community forever
Legacy Project - Free Press
Sharing your bounty, give to receive
G
iving is good. Good for your community, good for your charities, good for those who benefit from your charitable acts and donations. And to make the sharing of your bounty even more appealing, giving can be good for you, too. Your philanthropic gift is always important, no matter the amount of your assets or the size of your income – but to make the best use of your contributions, to preserve your legacy, and to minimize taxes and/or estate fees, a sound charitable giving plan is the way to go. Let’s look at your options. Name a charity as a beneficiary – The simplest option. In your will, leave a bequest of money or gift in kind (securities or artwork, for example) to a recognized charity and your estate will receive a charitable donation tax receipt that could reduce or eliminate the income tax on your final return and possibly on the immediately preceding return, as well. Establish a donor-advised fund – As the donor, you receive an immediate tax receipt for all contributions made to the fund and you also retain the rights to select the charities that are to receive your fund’s annual income. Establish a charitable remainder trust– This is an irrevocable trust that can hold assets such as cash or mutual funds. All the interest and dividends are paid to you as taxable income. Upon your death, the trust assets (known as the remainder) go immediately to the charity you have designated. When the trust is established, you receive a donation receipt for the
‘remainder interest’ of the trust. Donate a life insurance policy while you live – With this option, you ensure your charity will receive the total death benefit under the policy while you enjoy certain tax credits. Donate publicly funded stocks or securities – You will pay no capital gains tax on the donated securities and will receive a tax receipt for their full value. Establish a charitable life annuity – You will continue to receive a lifetime income from the donated assets for yourself, or for you and your spouse. Much of the annuity cash flow is tax-free and you’ll receive a charitable receipt for a portion of the donations based on the amount of annuity income you receive and your life expectancy. Establish a private foundation – If your donation is very substantial, this option allows your name or family’s name to be permanently associated with the causes you’ve chosen. Ask your professional advisor for help in establishing a planned giving strategy that makes the most of your bounty for your charities and for you. This column, written and published by Investors Group Financial Services Inc. (in Québec – a Financial Services Firm), and Investors Group Securities Inc. (in Québec, a firm in Financial Planning). presents 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.
Time…
to think about a charitable legacy You’ve always been known for your generosity to your family, friends and especially to your favourite charities. As you consider the legacy you wish to leave, the desire to continue your tradition of charitable giving becomes an even more important consideration. The Investors Group Charitable Giving Program allows you to shape and define your legacy. Whatever your interest, whatever your passion, you can make a difference.
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A safer community www.bbbspg.ca 250.563.7410
Diabetes is a growing epidemic. With more than 20 Canadians diagnosed every hour, chances are diabetes will affect you or someone you love. But you can make a difference…
Let a cure for diabetes be your legacy
DEBRA MOFFATT B.A. Consultant
debra.moffatt@investorsgroup.com
Boyanne Young Northern Region Branch Coordinator Canadian Diabetes Association 103 - 490 Quebec St, Prince George, BC V2L 5N5 Tel: 250 561 9284 Fax: 250 561 0009
diabetes.ca
(250) 564-2310
Call us to find out how your generosity can live on.
Details of the Investors Group Charitable Giving Program, including eligible funds, current fees and expenses, and other requirements, are available upon request in the Program Guide. Donations under the Program are irrevocable and vest with the Strategic Charitable Giving Foundation – a registered charitable foundation which is responsible for making all investments and operates independently from Investors Group. ™Trademarks owned by IGM Financial Inc. and licensed to its subsidiary corporations. MP1345 (10/2007)
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start something
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Choosing a charity - What moves you?
If you don’t have a cause that comes to mind for you, think of what inspires you to give back. There are many reasons that people give to charity, and you might want to think of an issue you’re concerned about, someone who inspired you or who you want to remember, or a meaningful event in your life. You may also want to consider the following questions: • Do you want to have an impact in your local community, on a provincial or national level, or internationally? • Is there a type of non-profit you’re interested in – the environment, healthcare, education, arts, social services, or religion? • What sort of impact or work are
you interested in? For instance, if you are interested in healthcare, you may be interested in health and medical research, or direct service provision and support, or perhaps in lobbying efforts to change healthcare policy. What are you particularly grateful for, and is there a way to provide that same effort for others?
Is the charity doing good? Charities come in all shapes and sizes, and they do many kinds of work. You want to know that you’re investing in an organization that does meaningful work for you. Consider the following before
Share Your Dreams, Build a Legacy Your family and community are important to you. Call us to help develop an estate plan that creates your legacy.
Martin Hooke Financial Advisor
225b 100 Tabor Blvd. Prince George, BC V2M 5T4 250-562-3005 martin.hooke@edwardjones.com
Dean W. Simpson Financial Advisor
5111 Domano Blvd. Prince George, BC V2N 5E1 250-964-2353 Cel: 250-640-8664 dean.simpson@edwardjones.com
Central British Columbia Railway and Forest Industry Museum Society
making your donation: • Is the organization actually a charity? All charities must be registered with the Canada Revenue Agency (CRA). Only CRA-registered charities are listed on CanadaHelps, so searching our site is a good place to start. When donating, always look for a charitable registration number, or BN – which is issued to all registered charities by the CRA. • Is the charity accountable? Are they willing to provide you with their annual audited financial statements and a report on their work? Some donors like to look at the costs of administration and fundraising: while that is one way to measure a charity, consider the measurements that actually demonstrate the success of their programs. Are they accomplishing the goals they set out to achieve? • Does it sound too good to be true? There are a small number of shady charities out there, so be careful. Some promise a tax receipt for more than your donation, or won’t provide you with the details of how your donation will be used. Be wary of these charities and ask more questions before you give.
How Much to Give How much you should donate is a personal question that depends on your ability to give. CanadaHelps recommends setting up an annual giving budget based on your income and expenses. If you’re having trouble determining how much to give, consider starting with a monthly donation. You can easily set up an automatic monthly deduction through CanadaHelps to give an amount of $10 or $20
each month to your favourite cause. Evaluate your giving after one year. Can you afford more each month, or was it difficult to sustain that level of giving? Do you want to add other charities that might benefit each month too? If you have appreciated securities (stocks, bonds, and mutual funds), consider donating from your portfolio. You’ll get an extra benefit on your taxes as a result: you will receive your normal tax receipt, and you won’t pay any capital gains tax on donated securities. Make your gift of securities through CanadaHelps to any Canadian charity. Don’t forget that your employer might match your donation. Look into the employee-giving incentives at your company to maximize your charitable giving. Remember, the deadline for giving in the tax year is December 31. Donations after December 31 cannot be claimed on your taxes. ••• Charities depend on financial contributions, but you may also want to consider volunteering, or donating in-kind (noncash) items.
Volunteering Visit www.volunteerpg.com to find our volunteer centre.
In-Kind Giving Charities are often looking for donations of goods to help them fulfill their missions. To find out which charities are looking for which items, visit DeliverGood – an organization with a mission to connect charities and non-profits who need stuff with people who have stuff.
You can create a lasting legacy of love for all of BC’s children. It is a magical thing to know that a decision you make today could save the life of a child 20 years or more from now. But that’s what happens when you include BC Children’s Hospital Foundation in your estate plans.
The RFM’s mandate is to preserve and interpret the history of the railway, forestry and other industries and culture that grew around them: • preserving, restoring and interpreting artifacts of historical significance related to the railways, forestry and industrial development in Central BC; • provide educational, hands-on experience to public through static and operating displays and display lifestyles of people involved in railways, forestry and industries developed in Central BC. Help preserve our heritage by making a donation to your Railway and Forestry Museum.
Small Patients Great Needs For more information or to let us know you have made a gift through your estate, please contact the Gift & Estate Planning team at 1-888-663-3033 or plannedgivinginfo@bcchf.ca.
RAILWAY & FORESTRY MUSEUM PRINCE GEORGE & REGION
Address: 850 River Road, Prince George BC V2L 5S8 Charitable Tax No: 126179167 RR0001
www.bcchf.ca
Prince George - The
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Friday, May 18, 2012
An easier way to give - donor advised funds have many benefits
Y
ou want to give back to your favourite charities and create a lasting legacy of charitable giving. Your philanthropic intentions are commendable – and one of the easiest ways to realize them is through a donoradvised fund. Donor-advised funds are a very efficient means of donating to your charities, offering many of the benefits of a private foundation but without the administrative costs, restrictions and responsibilities of a foundation. To establish a donor-advised fund, you create a donoradvised investment account through the financial services
organization of your choice. Your contributions are invested in an eligible mutual fund and grants are made from your account to your favourite charities or other permitted entities. When you establish the investment account, you select the charitable organizations or causes your fund will support, you retain the right to advise the fund on how your account’s income is to be allocated, and you will receive an immediate tax receipt for your contributions. Once you choose to establish your fund, this is the basic process: 1. You make an initial contribution of a significant lump
sum, or allocate an insurance policy with a net death benefit in the amount you have determined is appropriate. Your contribution is made to a charitable giving foundation, which is registered under the Income Tax Act as a public foundation. 2. You receive an immediate tax receipt equal to the fair market value of your initial donation. 3. You can name your fund account after yourself, your family, a loved one, a company, or a special interest. (For example, The John Smith Charitable Account or The Smith Family Fund.) 4. Your contribution is
invested in an eligible mutual fund managed by investment professionals. 5. Each year, you are advised about the amount that is available in your fund account as a grant to your charities. This is normally between 3 per cent and 5 per cent of the value of your account -- so, if you had $100,000 in your account, you might be advised that there is $3,500 available as a grant. 6. You then recommend which charities should receive the available grant amount. Your grants must go to registered Canadian charities. A donor-advised fund offers incredible flexibility when it comes to philanthropic planning – and it may be the ideal choice for you.
Planned giving using life insurance Planned giving using life insurance is an effective strategy that can work for you if: • You have a desire to support a charitable organization. • You’re interested in multiplying your current annual bequest. • You have an interest in managing current or future tax obligations. • You want to preserve your estate. A carefully arranged gift can be tax effective, while simultaneously balancing your needs and your family’s. It can allow you to leave a lasting legacy or provide your favourite charity with level, ongoing contributions over
a specific time period without significantly reducing the estate available to your heirs or jeopardizing your future financial independence. A permanent live insurance plan can allow you to accumulate cash, within certain legislative limits, without paying income tax on the growth. Cash withdrawals are subject to taxation based on the rates and rules in effect at the time you withdraw the funds. The death benefit is paid to the beneficiary of your choice, tax-free, upon death. It’s right for you if you want to maximize the gift that your charity can receive, if you need the tax credit today, and if you want the flexibility of naming your charity.
Baldy Hughes Therapeutic Community is the premier recovery community in British Columbia catering to men suffering from addiction. Our model is an innovative and novel approach to treating substance abuse and is inspired by the highly respected and world-renowned therapeutic community in Italy. The success of our abstinence-based program can be attributed to long-term treatment in a remote recovery community setting. Bequeathments & Legacy Gifts You may include in your will a provision for the BC New Hope Recovery Society. This could be for a specific sum of money, a particular property, or a percentage of your estate. If you are interested in making a legacy contribution of this type to Baldy Hughes please contact us by email at info@baldyhughes.ca.
BALDY HUGHES THERAPEUTIC COMMUNITY 34000 Blackwater Rd Prince George, BC V2N 6H1
Phone: 250-964-3136 Fax: 250-964-3162 info@baldyhughes.ca
PRINCIPAL
935 Brunswick Street Prince George, B.C. V2L 2C3
SORENSEN FINANCIAL SERVICES INC.
AiMHi supports over 1,000 people who have special need each year. We provide vocational, residential and advocacy services for children, adults and their families.
950 Kerry St., Prince George, BC V2M 5A33
Ph: 250-564-6408 Visit our website
But to be sure it is and that your charitable giving intentions fit in with your overall financial and estate plans, talk to your professional advisor first. This column, written and published by Investors Group Financial Services Inc. (in Québec – a Financial Services Firm), presents general information only and is not a solicitation to buy or sell any investments. Commissions, fees and expenses may be associated with mutual fund investments. Read the prospectus before investing. Mutual funds are not guaranteed, values change frequently and past performance may not be repeated. Contact a financial advisor for specific advice about your circumstances. For more information on this topic please contact your Investors Group Consultant.
OLE H. SORENSEN, E.P.C.
Helping people since 1957 Addiction Recovery & Therapeutic Community
B19
www.aimhi.ca
Ph: (250) 561-1011 Toll Free: 1-800-561-1024 Fax: (250) 561-1037 e-mail: ole@sorensengroup.ca
B20
Friday, May 18, 2012
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FINANCIAL PLANNING
Designed to suit your needs: Ƈ Planned giving using life insurance Ƈ Charitable giving funds (family foundations) Ƈ Gift annuity plans
Our Mission…we are committed to enhancing the well-being of our members, staff, and communities.
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