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What is "Planned Giving"?
There are at least two ways Presbyterians support their church financially.
We are all familiar with the weekly and monthly offering. If you use church envelopes or PAR program, you can choose where your money is to be used such as TRINITY's annual budget or building fund. You may also support national church programs such as Presbyterian World Service and Development or Presbyterians Sharing... through your offering. You probably also make contributions to special appeals - such as disaster relief - throughout the year.
These types of contributions come from your pocket book or bank account and are part of your weekly or monthly budgets.
The other type of financial contribution is long-term and usually involves some planning... hence the term 'planned giving'. This may include assets other than cash such as property, stock and annuities. Planned giving often reflects your personal experiences within the church and your specific passions when it comes to ministry.
Planned giving also needs to reflect your financial situation, and there are a number of financial planning tools to help you reduce your tax liability while at the same time supporting the ongoing work of the church.
How shall we then give?
What are the different ways to give, and which ones are best for you? The choices you make depend largely on your personal lifestyle. The needs and resources of a young family will be dramatically different from those of a retired couple. Before making decisions about your own planned gifts, it is important to talk to a reputable financial planning professional to ensure you get the results you want. That person will walk you through the options and will provide you with a tailor-made plan for your financial situation. Here is a brief overview.
Wills allow you to make a contribution that comes out of your estate - therefore it won't affect your resources while you are living and still need them. There is a significant tax advantage for your heirs. And if you donate a gift of property such as a cottage, you still get to enjoy it as part of your retirement lifestyle and your heirs will benefit from the tax advantage your gift earns through your estate. Wills, like all gifts, can be designated to the work of the church body that means the most to you: from your local congregation to denominational mission work in Canada and abroad.
Gift Annuities allow you to make a financial gift but still receive an income . . . and a portion, if not all, of the income is tax free. In addition, tax laws allow older seniors a one-time tax receipt for a portion of the total gift. Your income is guaranteed for life, and your income will remain constant.
Insurance is an ideal financial vehicle for young people to leave as an affordable legacy. You can purchase a policy for a tax deductible premium of a few dollars each month until the policy is paid, and leave a significant bequest for the work of the church.
Older people who have an insurance policy in force can name the church as owner and beneficiary. You get a tax credit for any cash in the policy and a tax receipt for any premiums still being paid. A distinct advantage of donating money in an insurance policy is that it is not usually 'active money' so it doesn't take cash out of your everyday income.
Publicly Traded Securities Present tax laws stipulate that if you sell publicly traded securities (stocks, bonds and mutual funds) privately, you are taxed on 50% of the capital gains. If you gift the securities directly to charity, however, you pay no taxes on capital gains while also receiving a tax donation receipt for the full market value of the securities. This means that the gifting of securities that have appreciated in value is a much more tax-efficient way to give to the church than a comparable size gift of cash.
Gifts of Property will earn a tax receipt for the full appraised value which may save you the capital gains tax which you would have to pay if you cashed it in yourself.
The information on these web pages does not constitute legal or professional advice and should not be substituted for appropriate professional advice. Trinity Presbyterian Church - York Mills encourages you to seek professional legal and financial advice before deciding on a course of action.
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