The Life Stages of Giving
As we move through life, our lifestyles and financial circumstances change. And so do the ways we give to our favourite charities and not-for-profit organizations.
The Early Years
Cash Donations and Active Participation
With limited means while still in school or starting a career, individuals in their twenties and younger, typically make spontaneous cash donations, and/or contribute by participating in special events and activities.
Monthly Giving
Increasingly, people in their thirties who are looking for easier, more convenient ways to give are choosing monthly giving programs where a specific amount is automatically donated to their favourite organization(s) each month. This is most easily accomplished through pre-authorized withdrawals from a chequing account or on a credit card.
The Middle Ages
Life Insurance
In their forties and fifties, individuals often carry their highest levels of personal debt and have the greatest need for annual tax savings. For this group, funding a charitable gift using a life insurance policy is a great way to make a significant future gift with modest current premium contributions that also generate a tax credit each year.
Listed Securities
For individuals in their mid-to-late career who hold stocks, mutual fund units and/or stock options that have increased in value, funding a gift by donating these assets lets them take advantage of special capital gains tax rates and enjoy immediate tax savings.
The Retirement Years
Charitable Gift Annuities and Remainder Interest Gifts
Those looking for a reliable, tax-preferred (often tax-free ) life income stream, and a thoughtful way to support a favourite charity, have discovered that charitable gift annuities (CGA) or charitable remainder trusts (CRT) can be great ways to meet their needs.
Estate Gifts by Will
With retirement income resources and needs much better understood, many people over age 60 begin to plan for charitable gifts in their will. Often referred to as bequests, these gifts can be specific amounts, a percentage amount, or the residue of an estate. Increasingly, generous donors are beginning to designate charities as beneficiaries of the proceeds from Registered Retirement Savings Plans (RRSPs) or Registered Retirement Income Funds (RRIFs). Such decisions result in reducing the amount of tax that would otherwise be payable by the estate at death.