Sunday, June 16, 2024

GIFT OPTIONS

The ways to give to an endowment fund are as diverse as a donor’s individual circumstances.  These are some of the more popular ways in which donations are made to community foundations in Canada.  They include:

 

Present Gifts:  cashable (immediately available)

  • Cash and cash equivalents – GICs, Treasury Bills
  • Gifts-in-Kind – real estate, securities, personal property
  • Life Insurance – the cash value of a life insurance policy
  • Securities – transfer of publicly traded stock

Deferred Gifts:  for use at some future time

  • Bequest – the provision in a will instructing executors to distribute a certain amount, a percentage or residue of the estate to the charity
  • Life Insurance – death proceeds of an insurance policy
  • Charitable Remainder Trust – a donation placed in trust with the income paid to the donor or other specified people for life and the remainder paid to the charity upon death
  • Residual Interest – the gift of an asset (e.g. – a house or work of art, with provision for lifetime use by the donor)