Using the Gifts of God to Build Up the People of God
Planned Giving in the Diocese of Ottawa is the ministry of helping members of the church make charitable gifts that balance our support for our church with personal and family commitments. Such gifts may offer significant current income tax benefits as well as provide income tax relief for estate purposes. Planned Giving means giving vital support to a cause we believe in and achieving personal financial goals while structuring our gift to maximize tax benefits.
Planned Giving is one way in which each of us has the opportunity to participate, either now or in the future, in seeing our dreams for our church come to fruition through sharing the gifts God has given us. Planned Giving is not separate from Christian stewardship; rather it is an important part of it. A planned gift offers ways, over and above regular support of the church's on-going work, to share God's gifts with others, and to grow spiritually as we live out our vocations and ministries within the mission of the Church.
A Planned Gift can be made by parishioners at any stage of life and is not necessarily dependent on the donor's financial circumstance. There are a number of planned giving opportunities that are appropriate for parishioners no matter what their income level or net worth may be.
A Planned Gift may be part of the ongoing stewardship commitment of parishioners. There are planned giving opportunities that are appropriate for those wanting to see immediate benefits, benefits farther into the future or benefits that are ongoing for a number of years. Planned Giving can be a significant consideration for current income tax planning as well as estate planning.
The Gift Planning Consultant of the Diocese of Ottawa is available to offer professional assistance to individuals and families contemplating a Planned Gift. The Gift Planning Consultant is also available as a resource for Parishes preparing to establish a planned giving ministry.
For more information please contact:
The Reverend Richard G. Vroom,
Diocese of Ottawa
Gift Planning Consultant,
71 Bronson Avenue
Ottawa, Ontario, K1R 8G6
You may also contact Richard directly:
Email: richard-vroom@ottawa.anglican.ca
Voicemail: 613-233-6271 ext 239 (office)
613-884-1215 (cell)
Outright gifts of cash are most suitable for those with significant cash or GIC investments and are looking for an opportunity to support a current ministry programme while enjoying income tax savings of up to 45% of the gift amount.
Gifts of appreciated property are those which result in a significant capital gain that can be sheltered through the donation of the property.
Gifts of publicly traded securities offer an opportunity for donors to combine charitable giving with significant income tax savings. The capital gain on a direct gift to the church is reduced to zero (to 0% from 50%) while the donation receipt is for the full market value of the securities transferred. Letter of Authorization to Transfer Securities
A charitable bequest to the church through a will can be used to reduce income taxes in the year of death and possibly the prior year. Such bequests most often come from long time parishioners whose families are financially secure.
Gifts of life insurance can provide a significant future gift to the church at a modest present cost to you. For the gift of a paid up policy, the donation receipt will be based on the paid up value. If not fully paid up, the donation receipt will be for the present cash value and future donation receipts will be available for the annual premiums paid. The church must be owner and beneficiary of such a policy. When you die, the Church as beneficiary receives the proceeds of the policy.
A Gift of a Stripped Bond is a corporate or government bond from which the interest coupons have been stripped away. Instead of paying income to the holder, it is sold at a discount for much less than its future redemption value. Tax is payable each year on the growth in the bond's value. However, when the bond is purchased and gifted to a church, neither the buyer nor the church is taxed and its value increases tax-free, often doubling or tripling before it matures. You will receive a tax receipt for the full cost of the stripped bond and the church will receive the full proceeds on maturity.
A Charitable Gift Annuity provides both a gift to your church and guaranteed payments for life for you and or your spouse. Your annuity payment will usually be higher than G.I.C. interest and often most of the annuity payments are tax-free. Every donor receives an immediate donation receipt for part of their contribution. Annuities are most appropriate for those with surplus cash or low yield GIC's wishing an improved cash flow from their investments.
A gift of residual interest may be a gift of a residence, cottage or a valuable piece of art. You retain the right to use and enjoy the property while you live. In each case you receive a donation receipt, at the time of transfer, for the present value of the residual interest you have given to church Such a gift is most often made by those who have a need for a current tax deduction for property they ultimately wish to leave the church.
A Charitable remainder trust is a deferred giving arrangement under which you irrevocably transfer property (cash, securities or real estate) to a trustee. You keep the right to the income from the trust, either for life or a specified number of years. At the end of that time, the trust principal becomes your gift to the Church. You receive a donation receipt for the present value of this remainder interest. This arrangement may be best suited to those with a sizeable estate in order to maximize charitable goals with appropriate estate planning.
Tax Advantaged Gift Planning Strategies
Anglican Diocese of Ottawa
For many years, governments and corporations have borrowed money from individuals by issuing bonds. As the lender, you purchase the bond at its "face value" and then receive interest at a fixed percentage until the bond "matures" and the face amount is refunded to you. (Bonds may also be bought and sold on the "secondary market" at current market prices; in that case you receive the stated interest for whatever time you own the bond.)
A stripped (or zero coupon) bond is a financial product sold by bond and securities dealers. Basically, it is a corporate or government bond from which the interest coupons have been stripped away. Instead of paying income to the holder, it is sold at a discount for much less than its future redemption value.
An individual who buys and holds a stripped bond must pay income tax each year on the growth in the bond's value. However, when the bond is purchased and gifted to a church, neither the buyer nor the church is taxed, so its value increases tax-free ñ often doubling or tripling before it matures.
For example
Albert Bathgate wishes to establish a named endowment with General Synod of The Anglican Church of Canada in memory of his wife. For $15,000, he purchases, in General Synod's name, a stripped bond which will mature in 10 years at a face value of $30,000. He receives a donation receipt for the full cost of the bond and, assuming a combined tax credit of 48 percent, realizes tax savings of $7,200 (48% of $15,000). He has made a future gift of $30,000 to The Anglican Church at a net cost of only $7,800 ($15,000 - $7,200)!
Selecting a bond to fit your goal
The cost of the stripped bond you purchase for General Synod (or your parish, diocese, The Primate's World Relief and Development Fund, or the Anglican Foundation of Canada) will depend on the years to maturity and the amount you want the Church to receive. Bond prices and yields fluctuate virtually every day. Contact an investment broker to obtain the most current stripped bond rates.
If you intend to use your stripped bond to establish a named endowment, as Albert Bathgate did in the example above, its present value must equal or exceed the established minimum for a new named fund. For a gift to the general endowment or a previously-established named fund, a bond of any size may be used.
Purchasing a stripped bond
Virtually any investment broker can provide a stripped bond, though you may wish to secure quotations from more than one to ensure that the pricing is efficient. You may consult your own dealer or ask us for suggestions.
If you have an account with the broker, you may use it to make your purchase and instruct the broker to register the bond in the name of The General Synod of The Anglican Church of Canada (or other Anglican entity) and deliver it to us. Alternatively, you may give us a cheque for the required amount and we will purchase the bond. The settlement contract with the broker or your cheque to General Synod will be the basis of your tax receipt
We would very much like to know if you have already arranged for a future gift to your Parish, the Diocese of Ottawa or the Anglican Church of Canada in order that we may recognize you as one of our "Legacy Partners"
Please print and fill out the form found here and include this with your Sunday envelope or mail to:
The Reverend Richard G. Vroom
Diocese of Ottawa
Gift Planning Consultant,
71 Bronson Avenue
Ottawa, Ontario, K1R 8G6
You may also contact Richard directly:
Email: richard-vroom@ottawa.anglican.ca
Voicemail: 613-233-6271 ext 239 (office)
613-884-1215 (cell)
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PLANNED GIVING