Gift Planning....simplified

Transcription

1 Gift Planning...simplified

2 Link Charity Can Link Charity Work For Me? Link Charity was started in 1998, and is a registered charity providing a valuable service operating as a link between donors and their charities. Link Charity offers service, tools, education, and guidance in gift planning for individuals and for other charities. Link Charity is modelled after another highly successful service charity. In its latest fiscal, Link Charity provided over $7 million to 600-plus charities in, and manages approximately $40 million. Deciding what to give, how much to give, and who to give it to can become a challenging undertaking. Link Charity makes that task simpler by recommending a Gift Plan that ensures your wishes are met with respect to family and charity. Consider, for example, the following stories, based on over 15 years of experience working with people such as you... Expertise Link Charity brings current knowledge of planned giving to both individual donors and member charities. How can Link Charity help you The giving tools within Link Charity s toolbox are current, relevant and designed to be attractive to both the charity and the individual. Regardless of your situation, Link Charity has a donation option to fulfill your needs. Mary (not her real name) is in her 80's and has been blessed with considerable assets. She has named Link Charity as the beneficiary of her estate in her will. She sent Link Charity a revised letter of direction as to which charities are to benefit. It did not require a lawyer, lawyer visits or fees. The executor will have one charity, Link Charity, with which to deal, and not dozens. Mary also took out several charitable gift annuities, and currently enjoys significant, tax free, worry free, income for life. The balance of those gift annuity agreements will be distributed at her death to her selected charities as well. She also paid for a gift annuity for a friend in financial need. Mary received the charitable receipt, and her friend in need receives quarterly, tax free income that is a real help. Due to its tax free nature, this income did not interfere with various supplementary government benefits to which the friend is entitled. What's more, Mary also makes a gift of securities every year to Link Charity, to take advantage of the capital gain exemption, and Link Charity makes generous gifts from the proceeds to the charities of her choice. Harold (not his real name) included Link Charity for a child's share in his will. Then, within that child's share, with carefully crafted wording by his lawyer, he made Link Charity the beneficiary of his RRIF, and he took out several charitable gift annuities with Link Charity. All these were summed in such a manner that they comprised exactly the equivalent of a child's share. The gift annuities and the RRIF will not be part of the probate process so it is estimated there will be several thousand dollars of probate fees saved, and these funds will not have to go through the will and the executor. The remainder of the child's share will come directly from the executor and generates a new charitable receipt that offsets all the remaining income tax payable by the estate in the terminal tax return. Harold also amended his letter of distribution in several minor ways, but without the need for a lawyer visit.

3 What We Offer Gifts of Securities Canadian donors can donate publicly traded securities (shares or mutual funds) directly to charities without including capital gains on donated securities in personal income. This eliminates the income tax on capital gains on all donated securities. Annuities Annuities allow you to make a planned gift while also securing an income for yourself. This enables you to give to your favourite charities and at the same time receive money to live on. All of our members partner with Link Charity to help donors with this kind of planned giving. When you donate a capital sum to Link Charity we guarantee you payments at an attractive rate for the rest of your life. Link Charity invests your donation in an investment pool and it generates a return. Upon your death the residual capital is released to your favourite charities. Life Insurance Some of the largest gifts to charities come in the form of donated life insurance policies in some form or another. There are many opportunities surrounding gifts of life insurance policies and many variables based on type, ownership, beneficiary designation etc. Instead of lapsing an insurance policy, Link Charity can help facilitate it going to charitable purposes. Contact us for more information. Donor Advised Funds A Donor Advised Fund allows the donor to set up a charitable gift fund. In turn it makes gifts to your favourite charities for a set period of time or for generations to come. By setting up a Donor Advised Fund you can think of yourself as the CEO of a foundation without the expense. 3

4 Link Charity Partners Across Borders for World Evangelism Galcom Inc. (877) AOJ The Arms of Jesus Children s Mission The Gideons INTERNATIONAL IN CANADA (905) Billy Graham Evangelistic Association of R LOB L REC RDI S ETW RK Bridges for Peace GracePoint Baptist Church (416) Chosen People Ministries () High Adventure Gospel Communications Ministries Justice Mission (905) Operation Mobilization P RTNERS I N T E R N AT I O N A L PHCC MINISTRIES O F C A N A D A Emmanuel Lifewater (807) MEA WORLDWIDE Maranatha Evangelistic Association Maranatha Evangelistic Association Pentecostal Holiness Church of Peoples Ministries Inc Prairie College (403) C O L L E G Jews for Jesus (416) Partners (604) In Touch Ministries Of Dalit Freedom Network Open Doors (403) LODGE Student Ministries Crossroads Christian Communications Inc. Elim Lodge OMS (905) Colombia Para Cristo Colombia para Cristo (604) ELIM Gospel for Asia INTERNATIONAL CANADA New Tribes Mission Christian Medical and Dental Society EMMANUEL The Gideons (905) freedom begins with a school (905) Global Recordings Network FREEDOM NETWORK CANADA Bridges to New Life Society MSC E Reach Beyond TM Serving in Mission Serving In Mission SEND

5 How Do You Want to Be Remembered? with Dr. David Jeremiah Voice of the Martyrs The Voice of the Martyrs Word of Life Benefits of a Planned Giving program for your estate: Provides a cost-effective way to establish substantial gifts to your family and favourite charities while maintaining financial security. You can make a commitment to support now but retain your funds during your lifetime. Tax benefits for your estate can be considerable. When your will is probated, your estate receives a tax receipt for the full amount of the donation, which can offset capital gains or other taxes owing. In the year of your death, Revenue Agency allows a charitable donation of up to 100 per cent of your estate's net income. This can result in a substantial tax credit that could eliminate taxes owing for that year and the previous year. Many elements of a Planned Giving plan are revocable and can be changed if your financial situation changes. It is a great way to leave a lasting testimony and fulfill your personal wishes for both your loved ones and favourite charities. Link Charity can help simplify your plans by being the named charity to deal with lawyers, executors, financial institutions, etc and distribute your generosity as requested by you. Charitable Distribution $8 $7.2 $7 $6 $5 $5.9 $5.6 $6.1 $6.2 $5.1 $4.3 Assets Under Management** Alternative (Non-Market)... $ 4,038,000 Bonds / Debentures... $ 3,895,000 Mortgage(s) Trusts... $ 8,072,000 Equities... $ 17,210,000 $4 Numbers in Million Turning Point Ministries TM Have you created planned giving preparations for your estate? It has been estimated that only one out of three Canadian adults has done this, which means that two-thirds of the people who die do not have their wishes met. A Planned Giving program is an important part of your personal legacy, representing your life and values. It is relatively easy to establish and maintain, and provides an ideal opportunity to create a lasting gift that can make a difference in the lives that follow. $3 Total $33,215,000 12% $2.8 $2 12% $ % Spring % ** plus $7 million additionally under administration. 5

6 Annuity Rate Table As of Spring 2016 Sample rates based on Spring Please note: These are Link Charity offered rates. In a low interest rate climate, Revenue Agency disallows these rates as being too generous. Please call or write for currently permitted rates Men Age % Rate 5.84% 6.30% 6.86% 7.57% 8.46% 10.00% Your $2,920 $3,150 $3,430 $3,785 $4,230 $5,000 All calculations are made on each $50,000 deposit Charitable Receipt $10,443 $12,075 $13,192 $14,000 Your Tax Free $2,920 $3,150 $3,430 $3,785 $4,230 $5,000 Taxable Women Age % Rate 5.58% 6.01% 6.56% 7.27% 8.20% 10.00% Your $2,790 $3,005 $3,280 $3,635 $4,100 $5,000 All calculations are made on each $50,000 deposit Charitable Receipt $10,422 $10,494+ Your Tax Free $2,790 $3,005 $3,280 $3,635 $4,100 $5,000 Taxable Annuity Rate - Joint, with spouses same age All calculations are made on each $50,000 deposit Age % Rate 5.49% 5.89% 6.40% Your $2,745 $2,945 $3,200 Charitable Receipt Your Tax Free $2,745 $2,945 $3,200 Joint life annuity is payable as long as either person is alive. Taxable GIC vs. Gift Annuity $50,000 initial contribution 6 Rate (pre-tax) (after-tax) Term Guaranteed Principal Available Charitable Receipt Beneficiary G I C 2% (national avg) $1,000 $750 (estimate) 5 Years (renewable) During Term Yes (after term) NO Estate GIFT ANNUITY Male (Age 77) Female (Age 77) Joint (Both 77) 6.86 % $3,430 $3,430 NO, Gifted $10,443 Charity of Choice 6.56 % $3,280 $3,280 NO, Gifted Charity of Choice 5.89 % $2,945 $2,945 NO, Gifted Charity of Choice

7 Our Core Values Integrity We value honesty and integrity in our communications with donors and members. Efficiency We value management principles that enhance the performance and transparency of our service. Stewardship We value principles of careful and trustworthy use of all funds. Members We value members and respect the distinctions they hold based on Judeo- Christian principles. Donors We value the individuals and institutions that we work with and respect the confidence placed in Link Charity. Generosity We value the spirit of sharing and giving that multiplies resources. Shared leadership We value the wisdom of members voices for operations and policy. Charitable Gift Fund Assets Under Management and Administration Numbers in Million $ 45 $ 40 $ 35 $ 30 $ 25 $ 20 $ 15 $ 10 $ 5 $ 0 Rate of Return 15 % 12.5 % 10 % 7.5 % 5 % 2.5 % 0 % % % $ 29 $ 24 $ 22.5 $ % 13.6 % 9.2 % 3.5 % ized rate of return since inception is 8.0 % $ % $ % Meet People Just Like You Shortly after Doris, age 78, attended one of our seminars, she decided that she wanted to turn some of her GIC s into a Gift Annuity. As two of her GIC s came due she met with us and wrote a cheque for $150,000 turning her annual income from $2700 taxable into $10,200 tax free. It is her intent to cash out her GIC s as they come due and turn them into several Gift Annuities over the next four years. Peter met a Link Charity representative at a charity banquet. After spending some time with him and his financial advisor Peter decided that he wanted to create an Endowment Fund in memory of his late wife Esther. The Endowment Fund will be a lasting legacy for the charity to which they had committed most of their lives. 7

8 Mission Statement Link Charity exists to provide service, tools, education and guidance in the area of gift planning to charities and their donors in Donlands Ave., Toronto, ON M4J 3R9 Toll Free: Steve Weir: Harry Houtman: Website: Charitable Organization Reg. # RR0001