The government - In the interest of promoting planned giving, the government continues to improve the tax advantage for individuals and estates.

A variety of options are available. Various approaches provide different advantages and have different resource requirements.

The Investment Plan

• Objective - to create a permanent endowment fund which will provide funds for the Foundation in perpetuity.
• Suitable for clients with current good cash flow needing tax advantages now.
• Donors agree to a fixed set of donations (usually five years) for which they receive a donation credit.
• Funds are invested for growth for a period of time and then income from the principle is used by the Foundation.

Life Insurance

• Objective - to create a large donation upon death
• Tax implications
  
  • Option 1
    The premiums to pay for the life insurance policy (usually five years) are tax deductible when made. Upon death, the proceeds of the policy are given to the Foundation but no charitable contribution is granted.
  • Option 2
    In this case the estate is named as the beneficiary and upon death the will directs the proceeds of the policy to the Foundation. The donation generates a charitable tax credit in the amount of the proceeds. In this case, the premium payments are not tax deductible.

Income Plan

• Objective - to make a decision and yet provide an above-average return for income purposes.
• Suitable for individuals with lump sum of money which is being used to provide investment income.
• The sum is donated to the Foundation and the proceeds used to purchase a life annuity from an insurance company. The annuity is a guaranteed income stream for the life of the donor.
• Depending on age, the donation may provide for an immediate tax receipt plus above-average income.
• Upon death, the payments cease and there is no residual for the estate.
• This plan works best for those over 70 who do not need this money for their estate.

Income Trusts

• Revocable Trust
  • A sum is donated to the Foundation and invested.
  • The income may go to the Foundation or the individual
  • Upon death, the principle may be donated to the Foundation generating a charitable receipt or returned to the estate with no charitable receipt.
• Irrevocable Trust
  • In this case the income may be used by the individual or donated to the Foundation.
  • Upon death the principle is donated to the Foundation
  • A charitable receipt value is calculated at the time of donation.

Donation of Real Estate or Stock

• 2006 ammendments to the Income Tax Act enhance the ability of Canadians to support the Eden Foundation or other registered charities.  A person may now donate publicly traded securities to a registered charity without having to pay any capital gains tax.  As a result, more money can be placed in the hands of registered charities and put to work for Eden's  mental health programs at a lower cost to the person making the donation.
• If you are holding publicly traded securities, we would encourage you to investigate the benefits of this type of donation.

Bequests

• In addition to their regular donations some supporters have provided for the future of Eden programs in their will.  These bequests have provided a critical financial buffer during periods when the costs of operations exceeds donations.  Please consider a bequest to Eden Foundation as part of your estate planning to ensure that we can continue to provide services to those who need support.