As faithful stewards of the resources entrusted to us, we are called to exercise wisdom and excellence when planning future gifts. The Advancement team at Redeemer is available to assist you in maximizing your giving potential and reducing taxes while supporting ministries that are close to your heart.
We work closely with Christian Stewardship Services to promote a God-honouring approach to stewardship. We are also certified by the Canadian Council of Christian Charities as meeting high standards of integrity and accountability. We are here to support you and walk through the many planned giving opportunities that are listed below.
Please give us a call or send us an email for more information: stewardship@redeemer.ca
Charitable Gift Annuities
A charitable gift annuity allows you to make a substantial gift for the future while establishing a guaranteed fixed income stream, much of which is tax free, for the rest of your life. The income amount varies depending upon your age, the purchase price of the annuity and the current interest rates. All annuities are irrevocable. Unlike commercial annuities sold by insurance and trust companies, any amount remaining at death will benefit Redeemer University College.
Bequests
Remembering your favourite charities in your will is one way to leave a lasting legacy. Gifts from your estate can be arranged as specific bequests or through distribution of the residual of your estate. One popular example of how to include charities in your will is to equally divide your estate among your children with an additional "child" named charity. A family with four children would divide their estate into five equal portions. That fifth portion would then be divided among your favourite charities, according to your written instructions. With estates eligible to claim charitable donation receipts equivalent to 100% of the deceased's income for both the year of death and the year preceding death, bequests provide welcome tax relief for the estate.
Charitable Remainder Trusts
In a charitable remainder trust, property (cash, securities or real estate) is irrevocably transferred to a trustee. The donor retains the right to the income from that trust either for life or for a specified term. Redeemer University College receives whatever remains in the trust after that specified term or upon the death of the last beneficiary, according to the terms of the trust document. This giving option allows the donor, the spouse or their dependents to continue to receive income from the property while receiving an immediate charitable donation receipt for the gift's residual value. Similar to the trust agreement, a residual interest arrangement allows you to get a charitable donation receipt now for a gift of property - usually real estate or artwork – which you keep during your lifetime. This type of gift is widely used because it permits you the pleasure of seeing your gift placed, having the use of it for life and receiving a charitable donation receipt. Your receipt is based upon the "residual interest" (the future value of the property in today's dollars).
Endowments
Present and future gifts can be endowed to provide a special blessing to both the donor and to Redeemer University College for years to come. When you contribute to an endowment fund, the capital of your gift remains untouched and only the income, or interest, from the fund is used. Through endowment funds, Redeemer builds a stable, secure income now and in the future. The donor receives an immediate tax receipt and additionally, donors may have the opportunity to establish a named scholarship or bursary.
Interest
If you hold investments at Redeemer University College, you might consider making a gift of the interest being earned on your investment. You could choose to forgive all or part of the annual interest income as a one-time gift or on an on-going basis. A charitable tax receipt is issued for any interest forgiven.
Alternatively, if you find yourself in a tax position where you can not take advantage of the tax receipt, a low - or zero - interest loan is another way to assist Redeemer University College. The advantage to the donor in this situation may be realized if the reduced income affects the donor's income tax bracket.
Life Bonds
Making an investment in a life bond today can mean a substantial gift to Redeemer University College in the future. By making Redeemer the owner and beneficiary of the policy, you will receive a tax receipt for each premium paid. A variety of wealth management strategies can be tailored to fit your financial situation.
Life Insurance Beneficiaries
Similarly to the life bond, designating Redeemer University College as the beneficiary of an existing life insurance policy, which you no longer need, provides for a significant future gift to the University. To take full advantage of the tax implications, you should also transfer ownership of the policy to Redeemer University College and in this way receive a tax receipt for the cash value of the policy as well as any subsequent premiums.
RRSP/RIF Beneficiary Designation
The residual remaining in a person's Retirement Savings Plan or Registered Investment Fund becomes a tax liability at death. Rather than seeing a significant portion of these monies going to the government, many people are leaving their RRSP or RIF residual to charity. The charitable tax credit and the taxes cancel each other out. If you hold an RRSP or RIF with Redeemer University College, contact us to name the University as the second beneficiary on your plan, behind your spouse. RRSPs and RIFs held at any financial institution can also take advantage of this gift planning option. As an added benefit, by naming Redeemer University College as the beneficiary of your plan, the funds are transferred outside of your estate at death, avoiding the probate fee.
Securities
Listed securities include stocks, bonds, bills, warrants and futures traded on approved stock exchanges in Canada and certain other countries. They also include mutual funds and segregated funds. Gifts of securities to Redeemer University College are sold and converted to cash. The tax advantages of donating your highly-appreciated stocks and mutual funds make this gift planning opportunity particularly attractive. You receive a charitable donation receipt for fair market value, that is, the closing price on the date of the gift or in the case of mutual funds, the "bid" price on the date of the gift. Plus, if you donate the securities directly (without cashing them first) there is 0% tax on capital gains.