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A planned gift is a charitable gift that you plan for now, but is not received by the Foundation until a later date. Making a planned gift can be a way of making a very personal statement about the values you have embraced throughout your lifetime. There are many different types of planned charitable gifts: bequests, life insurance, charitable remainder trusts and charitable gift annuities.
The Medicine Hat College Foundation is honoured to receive the trust of individuals who choose to establish a planned gift to benefit the college and its students. Making a planned gift can also provide significant tax benefits for you and your loved ones. Professional advisors can assist you in making the best decision for your estate and financial plans. We would also be pleased to discuss with you the many opportunities to make a lasting difference through a planned gift to The Medicine Hat College Foundation.
Your privacy and right to give anonymously will be respected. The following are four examples of how one can make a Planned Gift.
Charitable gifts can be made through your will. A bequest in your will is treated as if the gift was made in your final year of life and is claimed for credit on your final tax return. With a gift through your will, you retain full use of your gift property during your life. Large bequests in your will may become unusable for tax purposes if they far exceed the allowable threshold. You may therefore want to consider other options to maximize both the tax credits and the funds available to your beneficiaries – both family members and your charities. We would be pleased to provide you or your legal advisor with sample bequest wording.
Life Insurance as a Gift
Life insurance offers an affordable way of giving, and for many may be the preferred means to make a significant gift to Medicine Hat College. By purchasing a new life insurance policy, with the Foundation as beneficiary, your yearly premiums are eligible for tax-deductible receipts. Simply arrange with a life insurance company of your choice, transfer ownership and assign beneficial rights to Medicine Hat College.
If one or more of your existing policies no longer fits your personal financial strategy, you could consider transferring the policy to Medicine Hat College and receive a tax receipt for the full value of the policy. If premiums are still payable, transfer ownership and name Medicine Hat College as beneficiary, but continue to pay the premiums. We will issue you a tax receipt for each additional premium paid or you can simply name Medicine Hat College as beneficiary. In the future when the proceeds of the policy are received, Medicine Hat College will issue a tax receipt, which will benefit your estate.
Charitable Remainder Trust
If you have property that you would like to donate to Medicine Hat College, but you need the income from the property during your lifetime, consider donating a ‘residual’ interest in the property – that is the capital that will remain on your death. One way to do this is to set up a “charitable remainder trust”. A charitable remainder trust is an agreement whereby you make an irrevocable gift to The Medicine Hat College Foundation and in return, you receive a regular income for as long as you live.
Your funds will be professionally managed and all of the income from the trust will be distributed to you on a regular basis. At the time of the death, or at the time of the second person's death in the case of a joint arrangement, the portion of the remaining donation capital becomes available for the work of the College. Through a Charitable Remainder Trust you can:
- Give a larger gift than might otherwise be feasible
- Receive charitable tax credits from your gift
Charitable Remainder Trusts usually require an initial $100,000 of capital to establish and are generally arranged through a trust institution.
Another option for donors who wish to receive the income from their property is a charitable gift annuity. An annuity offers a realistic option for making a significant contribution while maintaining future financial security. A charitable gift annuity is an agreement whereby you make an irrevocable gift to The Medicine Hat College Foundation. In return, you receive a regular income for as long as you live, based on your age and according to the rate offered at the time the annuity commences. The payment frequency is monthly. At the time of death, (or at the time of the second person's death in joint and survivorship annuities), the portion of the donation remaining becomes available for the work of the college.