Leave a Legacy
Planned Giving provides a meaningful way for donors to leave a lasting legacy. Planned gifts do not adversely impact your current financial situation and could have tax benefits in the present as well as benefits to your estate.
Types of Planned Gifts
On this page, we discuss three types of planned gifts:
- Life insurance
- Stocks, Bonds, Mutual Funds and Other Appreciated Securities
A Note about Planned Giving
MEOW Foundation knows that family comes first and appreciates your desire to provide for your family, pets and favourite charities in your estate planning process. Each of the opportunities to give listed above requires careful consideration and discussion with your family and your own professional advisors, lawyers, estate planners and financial advisors. The ideas presented here are not intended to replace the advice of trained professionals.
Bequests are made in your will, leaving a specific monetary amount or a percentage of your assets to MEOW Foundation. Just as donations throughout your lifetime helped MEOW continue to achieve its mission of Making Each One Wanted, so too can a bequest in your will continue helping stray and abandoned cats in Calgary after you’re gone.
MEOW Foundation can be named as an irrevocable beneficiary of a whole life insurance policy. Premiums paid on life insurance policies with a charity named as the irrevocable beneficiary are tax deductible today.
Stocks, Bonds, Mutual Funds and Other Appreciated Securities
If you’re looking for a way to make a significant contribution to MEOW Foundation and have investments which have grown in value from the time of purchase, a donation of a stock or mutual fund may be for you. MEOW Foundation accepts donations of stocks and other appreciated securities, including mutual funds, bonds and segregated funds.
With changes to tax legislation regarding the handling of capital gains, the donation of an appreciated security versus the sale of the stock to provide a cash donation can provide tax advantages. How does this work in your advantage? Normally, when you sell appreciated securities, you will have to pay tax on your gains. If you donate appreciated securities directly to MEOW Foundation, the capital gains tax will be significantly reduced and you’ll receive a donation receipt for fair market value—all while making a lasting contribution to help abandoned cats in Calgary.
Example: Personal Donation of a Stock*
|Comparison||Donate Shares to Charity||Sell Shares and Donate Proceeds|
|Cost Base of Shares||$4,000||$4,000|
|Appreciated Value of Shares||$10,000||$10,000|
|Taxable Capital Gain (50%)||$0||$3,000|
|Tax Payable (45% marginal tax rate)||$0||$1,350|
|Share Value Donated or Net Proceeds to Charity||$10,000||$8,650|
|Tax Credit to Donor||$4,500||$3,893|
As the above example illustrates, the charity and the donor benefit when securities are donated directly to the charitable organization.
*Please note that in the above example we are applying the top marginal tax rate. Under current tax rules, the first $200 of a donation receives a tax credit based on the lowest marginal tax rate, while donations in excess of $200 receive a tax credit at the highest marginal tax rate. The example above assumes the donation of shares exceeds $200, so the higher tax rate is used.
To begin planning your donation of Stocks, please download our Gift of Securities Donation Form. Completed forms can be sent to MEOW Foundation, PO Box 65024 RPO North Hill, Calgary, AB T2N 4T6.
For more information, please contact email@example.com.