As a professional advisor, whether you are a lawyer, accountant, financial planner, or insurance agent, you have an unique opportunity to provide information about charitable giving as a valued service to clients.  Ultimately, this service could potentially have a tremendous impact on the  community, particularly, health care.  Funds received by Hamilton Health Sciences Foundation now and in the future are critical to the sustainability and improvement of research, equipment and patient care. 

Ways in which you can assist your clients to maximize personal benefits through charitable giving is when significant decisions need to be considered:

1. Preparing a Will
2. Retirement Planning
3. Estate Plans
4. Sale of major Asset
5. Capital gains, and Inheritance

It is these types of situations that lay the footing for your role as a professional advisor to ask the question of your client, “Are there any charitable or community needs you would like to consider?”  Several types of gifts can generate various personal and tax benefits depending on your clients financial position.

Donation   |   Securities   |   Planned Gift   |   Will Clausing

The staff at Hamilton Health Sciences Foundation would be delighted to work with you and your clients to ensure their philanthropic wishes become a reality.  As a professional advisor in the community, we consider you as a vital partner in charitable giving.

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Types of Gifts

Donation

Gifts made today provide an immediate tax benefit and give your client the satisfaction of seeing their gift at work.  Contacting a legacy representative can assist you to ensure the gift is directed in accordance with your client’s wishes.

Gifts of Publicly Traded Securities

Stocks, bonds and other valuables can be donated through your client’s Will or right now to allow them to see their gift at work.  This type of donation is called a gift in kind, which means it’s not a cash donation.  The amount of the charitable tax receipt is based on the market value of the securities the day the charity receives the funds.

Benefits: 
Many people own stocks that have appreciated considerably.  If those securities are sold, 50% of the capital gains must be reported as income.  Donating those same securities to charity such as Hamilton Health Sciences Foundation reduces the capital gains to zero and your client receives a charitable tax receipt for the full market value.  In order to eliminate the capital gains, the shares must be transferred directly to the Hamilton Health Sciences Foundation.

Planned Gifts

Donations through a Will (Bequests)

The most common type of planned gift is a charitable bequest made in a Will.  A bequest can take the form of cash, asset, donation of all or residue of the estate.

Benefits:
Charitable receipts up to 100% of the donor’s net income can be claimed as a charitable donation in the year of death (and preceding year, if necessary).  A charitable bequest can produce a considerable tax savings.

Donation of RRSPs and RRIFs

Many people have significant assets in their RRSP’s and RRIF’s.  Naming a spouse as the designated beneficiary of those plans will defer the tax liability.  However, on death of the surviving spouse, the full proceeds of the RRSP/RRIF will be taxed as income in the year of death.  In this instance, naming a charity such as Hamilton Health Sciences Foundation as the beneficiary offsets the tax and eliminates the probate fees related to the estate plan.

Benefits:
The client’s estate receives a donation receipt for the full amount of the gift.  They save probate fees and any assets that pass directly to the beneficiary without probate remain private and confidential unlike those distributed through a will.

Donation of Life Insurance

Life insurance can be an excellent vehicle for charitable giving.  Charitable donations can be made through an existing or new life insurance policy.  This can be done one of three ways: 1) donating an existing life insurance policy – name Hamilton Health Sciences Foundation as the owner and irrevocable beneficiary of the policy or 2) purchase a new policy designating Hamilton Health Sciences Foundation as the owner and irrevocable beneficiary and 3) donate a policy through the client’s Will naming Hamilton Health Sciences Foundation as beneficiary.

Benefits:
Option 1- the client may be eligible for a tax credit for the donation of an insurance policy, provided the charity is the owner and irrevocable beneficiary of the policy at the time of the donation. 
Option 2 – the client receives a tax receipt for their policy annual premium payments and Hamilton Health Sciences Foundation receives the life insurance proceeds for that policy upon death.
Option 3 – upon death, your client’s estate receives a tax receipt for the value of the life insurance policy. 

Charitable Gift Annuity

Allows a donor to make an irrevocable donation of cash or investments to a charity and at the same time provides a guaranteed fixed income to the donor for life.  The key with a charitable gift annuity is determining the amount of after-tax income your client requires.

Benefits:
An immediate tax receipt is available for the portion of the gift that is donated to Hamilton Health Sciences Foundation.  The payments are fixed for life, and depending on the age, a substantial portion of the income may be tax-free.  A charitable gift annuity avoids probate taxes to the estate upon death. 

Will Clausing

Bequests can be endowed or given as an outright cash gift.  If your client would like the bequest to be endowed, the capital is invested and only the interest is used annually to fund a particular hospital or program.  Cash gifts are not endowed and the gift is used outright to fund a particular hospital or program.  Please contact a legacy representative to ensure that the wording reflects the client/donors wishes.

Outright Gift Clause

If your client would like the gift not to be endowed and used outright, we recommend the following wording be used:

“I give to Hamilton Health Sciences Foundation, currently located at 40 Wellington Street, P.O. Box 739 LCD 1, Hamilton, Ontario _____ percent of the residue (or a specific amount) of my estate. It is my wish that these funds, if practical and possible, be directed as an outright gift (not endowed) to be used for the _________________________ program as determined by the Board of Directors of Hamilton Health Sciences Foundation from time to time.

Endowment Clause

If your client would like the estate gift to be endowed, we would recommend the following wording be used:

“I give to the Hamilton Health Sciences Foundation, currently located at 40 Wellington Street, P.O. Box 739 LCD 1, Hamilton, Ontario _____ percent of the residue (or specific amount) of my estate.  It is my wish that these funds, if practical and possible, be endowed for the__________________________________ program as determined by the Board of Directors of the Hamilton Health Sciences Foundation from time to time.

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