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A Charitable Guide to Planned Giving

A "Get-To-It" guide to planned giving

By DeWayne Osborn C.G.A., CFP

• Intro
• Contents
• Ch. 1
• Ch. 2
• Ch. 3
• Ch. 4
• Ch. 5
• Ch. 6
• Ch. 7
• Ch. 8
• Ch. 9
• Definitions
• Calculators

Table of Contents

• 1 - Getting Started
  • 1.1 - The Basics, the Background
  • 1.2 - What is a Registered Charity?
  • 1.3 - Other factors
  • 1.4 - Reasons for Making a Gift
  • 1.5 - General Issues to Consider
  • 1.6 - Regulatory Issues to Consider
    • 1.6.1 - Tax Receipting Planned and Major Gifts
    • 1.6.2 - Tax Receipts in Different Names:
    • 1.6.3 - The Disbursement Quota
    • 1.6.4 - Penalties and Sanctions
• 2 - A Full-time Versus a Part-time Program
  • 2.1 - The Investment of Money and Time
  • 2.2 - Operational Revenues and Staffing
  • 2.3 - Major Components of a Planned Gifts Program
  • 2.4 - Tracking the Program's Activities
  • 2.5 - Measuring Success of the Program
    • 2.5.1 - Reporting Expectancies
  • 2.6 - Managing the Marketing of the Program
  • 2.7 - Endowments Held by Other Institutions
  • 2.8 - Running An In-house Program
  • 2.9 - Presenting the Idea to the Board of Directors
• 3 - The Road to Planned Giving
  • 3.1 - The Members of the Committee
  • 3.2 - Functions of the Committee
  • 3.3 - Recruitment of Knowledge
  • 3.4 - Volunteer Time Commitments
  • 3.5 - Conflict of Interest
  • 3.6 - Gift Acceptance Committee
  • 3.7 - Committee's Review Gift Strategies
  • 3.8 - Issues with Policies and Procedures
    • 3.8.1 - Policies and Procedures Issues: Part-time Program
    • 3.8.2 - Policy and Procedure Issues: Any Program
    • 3.8.3 - Additional Issues Any Program
  • 3.9 - Deed of Gift
    • 3.9.1 - The New Legislative Landscape
    • 3.9.2 - The Basics of the Legislation
    • 3.9.3 - Discussion of Key Principles
    • 3.9.4 - Disturbing Trends in Legislation
  • 3.10 - Legislation and Registered Charities
    • 3.10.1 - ITA Sections 248(30) - (41)
    • 3.10.2 - ITA 248(31) Eligible Amount of Gift
    • 3.10.3 - ITA 248(32) Amount of Advantage
    • 3.10.4 - ITA 248(33) Cost of Property Acquired
    • 3.10.5 - ITA 248(34) Repayment of Limited Recourse Debt
    • 3.10.6 - ITA 248(35) Deemed Fair Market Value
    • 3.10.7 - ITA 248(36) Non-arm's Length Transactions
    • 3.10.8 - ITA 248(37) Non-application of Subsection 35
    • 3.10.9 - ITA 248(38) Artificial Transactions
    • 3.10.10 - ITA 248(39) Artificial Transactions
    • 3.10.11 - ITA 248(40) Reasonable Inquiry
    • 3.10.12 - ITA 248(41) Information not Provided
  • 3.11 - Policies and Procedures
• 4 - Bequests
  • 4.1 - General Information
    • 4.1.1 - Reasons for Including Bequests
    • 4.1.2 - The Ideal Donor
    • 4.1.3 - How Does One Find the Ideal Donor
    • 4.1.4 - Types of Bequests
    • 4.1.5 - Power of Attorney
    • 4.1.6 - Bequest Issues: mental incompetence
  • 4.2 - Tax Implications
    • 4.2.1 - Taxes at Death
  • 4.3 - Bequest Gift Opportunities and Ideas
    • 4.3.1 - The Estate Bond - No Gift
    • 4.3.2 - Gifting Life Insurance Through the Will
    • 4.3.3 - Gifting RRSP and RRIF via the Will
    • 4.3.4 - Avoid Probate
  • 4.4 - Common Questions and Answers
  • 4.5 - Summary of Key Factors
• 5 - Life Insurance, RRSP, RRIF, and TFSA
  • 5.1 - General Information
    • 5.1.1 - Ways to Gift Life Insurance
    • 5.1.2 - The Ideal Donor
    • 5.1.3 - How Does One Find The Ideal Donor?
    • 5.1.4 - Types of Insurance
  • 5.2 - Tax Implications
    • 5.2.1 - Gift of an Existing Policy
    • 5.2.2 - Gift of a New Policy
    • 5.2.3 - Gift of a Life Insurance through the Will
    • 5.2.4 - Gift of Life Insurance by Changing Beneficiary
    • 5.2.5 - Disbursement Quota Issues
    • 5.2.6 - Gift of RRSP, RRIF - General Information
    • 5.2.7 - Gift of RRSP, RRIF - Tax Implications
    • 5.2.8 - Gift of RRSP, RRIF - Benefits and Pitfalls
    • 5.2.9 - Gift of a Tax Free Savings Account
  • 5.3 - Life Insurance - Gift Opportunities and Ideas
    • 5.3.1 - Multiple Charities as Owners
    • 5.3.2 - Replacement of Taxable Assets
    • 5.3.3 - Leveraged Life Insurance
    • 5.3.4 - Potential Problems (risks) - Interest and Premium Payments
    • 5.3.5 - Potential Problems (risks) - Charity Involvement with Referrals
    • 5.3.6 - Options for the Charity
    • 5.3.7 - Harvesting Cash from Existing Policies:
  • 5.4 - Common Questions and Answers
    • 5.4.1 - Can I use insurance to help more than one charity?
    • 5.4.2 - What if the donor changes his or her mind OR, for some other reason, stops paying the premiums?
    • 5.4.3 - What if I (charity) forget to pay the premium by the due date?
    • 5.4.4 - What is guaranteed insurance?
    • 5.4.5 - What steps can be taken to assist a donor with making term payments for life?
    • 5.4.6 - What is my (charity's) role in the gift of life insurance?
    • 5.4.7 - Can I pay my insurance premiums with publicly traded securities?
  • 5.5 - Summary of Key Factors
• 6 - Annuities
  • 6.1 - General Information
    • 6.1.1 - The Ideal Donor
    • 6.1.2 - How to Find the Ideal Donor
    • 6.1.3 - Pros and Cons of Annuities
    • 6.1.4 - Types of Annuities
    • 6.1.5 - Related Businesses
    • 6.1.6 - Public Foundations and Annuities
  • 6.2 - Annuities - Tax Implications
    • 6.2.1 - Advantage and Annuities
    • 6.2.2 - Annuity Calculations: Tax Receipt
    • 6.2.3 - Residual Payments from Guaranteed Annuities
    • 6.2.4 - Determining the Actual Gift to the Charity
    • 6.2.5 - Re-insured Gift Annuities - Determining the Payment to the Donor
    • 6.2.6 - Non-Prescribed Annuities
    • 6.2.7 - Bundled Annuity: How to Make the Payment to the Donor
    • 6.2.8 - Reporting Taxable Portions to Donors
    • 6.2.9 - When Quotations are not Available
    • 6.2.10 - Taxable Issues with the Payment
  • 6.3 - Gift Opportunities and Ideas
    • 6.3.1 - Gifts Plus an Annuity (de-bundled)
    • 6.3.2 - Charitable Life Income Fund
    • 6.3.3 - Back-to-Back Annuity Strategies
    • 6.3.4 - Term Certain Annuities Solving Estate Problems
  • 6.4 - Common Questions and Answers
    • 6.4.1 - Can a donor change his or her mind
    • 6.4.2 - If the charity re-insures, is an insurance agent required, or just advisable?
    • 6.4.3 - What is the process where a donor has a taxable portion in his annuity payment?
    • 6.4.4 - When do you send out the T4A?
    • 6.4.5 - What is the maximum age for a gift annuity?
    • 6.4.6 - What is the minimum amount that can be used for a gift annuity?
  • 6.5 - Summary of Key Factors
• 7 - Outright Gifts by Individuals
  • 7.1 - General Information
    • 7.1.1 - The Ideal Donor
    • 7.1.2 - How Does One Find the Ideal Donor?
    • 7.1.3 - Outright Gifts: Accept or to Not Accept
    • 7.1.4 - The Role of the Gift Planner
  • 7.2 - Tax Implications
    • 7.2.1 - Tax Basics: Capital Gains and Losses
    • 7.2.2 - Personal-Use Property Gains and Losses
    • 7.2.3 - Capital Gains and Losses in the Year of Death
    • 7.2.4 - Outright Gift: Cash
    • 7.2.5 - Personal-Use Property
    • 7.2.6 - Capital Gains and Losses for Listed Personal-Use Property
    • 7.2.7 - Gifts of Art
    • 7.2.8 - Gifts not Subject to the Minimum $1,000 Threshold
    • 7.2.9 - Gifts of Property with Debt
    • 7.2.10 - Principal Residence - definition
    • 7.2.11 - Gifts of Principal Residences
    • 7.2.12 - Gifts of Publicly Traded Securities
    • 7.2.13 - Gifts of Exchangeable Shares
    • 7.2.14 - Private Foundations and Excess Holdings
    • 7.2.15 - How to Make a Gift of Publicly Traded Securities
    • 7.2.16 - Gift of Securities
    • 7.2.17 - Examples: Gift of Securities with Advantage
    • 7.2.18 - Gifts of Publicly Traded Securities Acquired under an Employee Stock Option Plan
    • 7.2.19 - Gifts of Publicly Traded Securities that do not Qualify for the Special Capital Gains
    • 7.2.20 - Gifts of Flow-Through Shares Three Wins for Donors!
    • 7.2.21 - Flow-Through Shares: a simple example
    • 7.2.22 - Gifts of Privately Held Securities
    • 7.2.23 - Arm's-Length Issues
    • 7.2.24 - Capital Gains and Non-qualifying Securities
    • 7.2.25 - Property Eligible for the Capital Gains Deduction
  • 7.3 - Gifts of Real Estate
    • 7.3.1 - Gifts of Time Share Real Estate
    • 7.3.2 - Selling Real Estate
    • 7.3.3 - Environmental Assessments versus Audits
  • 7.4 - Issues when Property is Received via a Bequest
  • 7.5 - Outright Gifts - Opportunities and Ideas
    • 7.5.1 - Wealth Replacement
    • 7.5.2 - Donate to Eliminate
    • 7.5.3 - Donate to Acquire
  • 7.6 - Outright Gifts- Common Questions and Answers
    • 7.6.1 - What is a tax credit?
    • 7.6.2 - How Much Tax is Eliminated by Donations?
    • 7.6.3 - Can I Return of Gift?
  • 7.7 - Outright Gifts - Summary of Key Factors
• 8 - Outright Gifts by Companies
  • 8.1 - General Information
    • 8.1.1 - The Ideal Donor
    • 8.1.2 - How Does One Find the Ideal Donor?
    • 8.1.3 - The Role of the Charity's Development Staff
    • 8.1.4 - Accept or to Not Accept
  • 8.2 - Corporate Gifts - Tax Implications
    • 8.2.1 - Tax Credit versus Tax Deduction
    • 8.2.2 - Types of Companies
    • 8.2.3 - Ownership of Corporations
    • 8.2.4 - Types of Taxes Paid by Private Companies
    • 8.2.5 - Refundable Dividend Tax on Hand (RDTOH)
    • 8.2.6 - Capital Dividend Account
    • 8.2.7 - Adjustments to the Corporate Contribution Room
    • 8.2.8 - Gifts of Publicly Traded Securities
    • 8.2.9 - Gifts of Depreciable Property
  • 8.3 - Outright Gifts - Gift Opportunities and Ideas
    • 8.3.1 - Gift of Cash: Company versus Individually
    • 8.3.2 - Corporate versus Individual Donation
    • 8.3.3 - Corporate versus Individual Donation
    • 8.3.4 - Other Private Company Gifts
  • 8.4 - Outright Gifts By Companies - Common Questions And Answers
    • 8.4.1 - What information to get from Business Owners?
  • 8.5 - Outright Gifts - Summary Of Key Factors
    • 8.5.1 - Key Points to Remember
• 9 - Special Gifts
  • 9.1 - Trusts - General Information
    • 9.1.1 - The Ideal Donor
    • 9.1.2 - How Does One Find the Ideal Donor for Trust Gifts?
    • 9.1.3 - How the CRT works
    • 9.1.4 - Valuation of the Residual or Remainder Interest
    • 9.1.5 - Valuation: A Job Best Left to Professionals
    • 9.1.6 - Policy Issues with Trust Gifts
  • 9.2 - CRT TAX IMPLICATIONS
    • 9.2.1 - Disposition of the Asset
    • 9.2.2 - Gift of Residual Interests
    • 9.2.3 - Application of Loan Back Provisions to Gifts of Residual Interests
    • 9.2.4 - Loan Forgivness
    • 9.2.5 - Special Gifts: Canadian Cultural Property
    • 9.2.6 - Tax Incentives Gifts of Cultural Property
    • 9.2.7 - Tax Shelters
    • 9.2.8 - Tax Shelters After December 5, 2003
  • 9.3 - CRT - Opportunities and Ideas
    • 9.3.1 - Asset Protection
    • 9.3.2 - Donors that Want Their Cake and Eat it Too!
    • 9.3.3 - The Charitable Estate Freeze
    • 9.3.4 - Charitable Loss Selling
  • 9.4 - Common Questions and Answers
    • 9.4.1 - What interest rate do you use when valuing a charitable remainder trust?
    • 9.4.2 - Can the charity serve as trustee of a CRT?
    • 9.4.3 - Can the donor change something after the trust is settled?
    • 9.4.4 - Does the 0% income inclusion rule apply to CRT?
    • 9.4.5 - Why is the Amount of the Tax Receipt Discounted?
    • 9.4.6 - Who pays for the costs of setting up a CRT?
  • 9.5 - Special Gifts - USA Cross Border Gifts
    • 9.5.1 - The USA Gifting Experience
    • 9.5.2 - USA Donors - Implications with FMV
    • 9.5.3 - USA Donors - Limits on Deductions
    • 9.5.4 - USA Donors - The Estate Tax
    • 9.5.5 - USA Donors - The Gift Tax
    • 9.5.6 - USA Donors - The Generation Skipping Tax (GST)
    • 9.5.7 - USA Donors - The Convention Between the United States of America and Canada (Treaty)
    • 9.5.8 - Bequests and the 2007 USA - Canada Treaty
    • 9.5.9 - USA Situs Property
    • 9.5.10 - Donors - Recording the USA Donor's Gift
    • 9.5.11 - USA Donors - How to Make Cross Border Gifts
    • 9.5.12 - USA Donors - Special Considerations
  • 9.6 - CRA Advanced Rulings/Court Cases/ Technical Interpretations
    • 9.6.1 - Advantage/benefits to donors
    • 9.6.2 - Transfer of Property/When a Gift is Made
    • 9.6.3 - Recent Tax Shelter Court Cases and Rulings
    • 9.6.4 - Recent Flow Through Gift Rulings and Overview
    • 9.6.5 - Model Court Cases re: Valuation
    • 9.6.6 - Bill C6 - Donation of Consumer Products

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