Planned Giving Program

Publicly Traded Securities & Mutual Funds

You can give a gift of publicly traded securities to SaskAbilities and you may be entitled to an inclusion rate of zero on any capital gain resulting from the donation and thus maximize tax savings.   If you own stocks or mutual funds that have grown in value, you will face a tax bill when you sell them.  By donating them directly to SaskAbilities you can eliminate your tax bill on the disposition of securities, receive a donation tax credit, maximize the value of your gift, and make a positive impact

Please Seek Expert Advice: If you are thinking about transferring assets that have appreciated in value, you should seek expert advice from a tax specialist or your broker. SaskAbilities strongly recommends that you seek professional advice to ensure your financial goals are considered, your tax situation reviewed, and that your planned gift is tailored to your circumstances. 

How does it work?

A donation receipt is issued for the fair market value of the security on the date of transfer.  The securities must be transferred directly to SaskAbilities and not be sold by you, the donor. The gift will not qualify for the capital gains tax exemption if the securities are sold and the cash then gifted to a charity.

Guidelines for Transferring Assets

1. The easiest and safest method of transfer exists if the securities are in a brokerage account. Securities may be transferred by instructions from you, the donor to transfer the securities from your account to the SaskAbilities’ account which is held with RBC Dominion Securities. Please contact SaskAbilities to obtain their detailed brokerage information and forms to assist in the transfer.

2. A donor who holds securities certificates may present an endorsed certificate with the signature guaranteed by the bank or your broker, or an unendorsed certificate and a signed stock or bond power of attorney with the signature guaranteed. Certificates may be delivered by courier to SaskAbilities in advance of the closing if due precaution is observed, that is, the unendorsed certificates and the stock or bond power of attorney are delivered separately.

3. Re-registering the securities certificates in the name of SaskAbilities is not recommended, as re-registration can take more than two weeks in which time the value of the securities can change.

4. To transfer mutual fund shares, the donor should send a letter of instruction to the fund company (i.e. AGF or McKenzie Financial, etc). The donor must sign documents provided by the fund company.  A letter of instruction states: “I request that (Name of Mutual Fund) immediately transfer (number) _____ shares from my account #_______________ into the name of SaskAbilities, (account #, brokerage institution, and broker’s name).    Do not sell or redeem this donation from my account.  After SaskAbilities receives confirmation that the shares are in its account, it may authorize the sale of the shares.” SaskAbilities has forms that can be used to assist with transferring mutual fund shares; please contact jdenysek@saskabilities.ca.

CAUTION: When transferring listed securities ALWAYS ensure that the securities are transferred directly to SaskAbilities then sold by SaskAbilities.    The securities must be transferred to SaskAbilities and not be sold by you, the donor. The gift will not qualify for the capital gains tax exemption if the securities are sold and the cash then gifted to a charity.

Life Insurance

A gift of Life Insurance is a simple and easy way to support SaskAbilities.  A life insurance policy enables you to leave a gift to SaskAbilities for a relatively small financial outlay while allowing you to make a significant gift.  Many of our donors would like to make a significant contribution; however, they may not have the financial resources to make a large gift during their lifetime.  A life insurance gift is the perfect answer.  In addition, you can make a gift of either a new or existing policy.  

New Life Insurance Products are emerging that are tailored to Planned Giving, like Canada Life’s My Par Gift – see: https://www.canadalife.com/insurance/life-insurance/permanent-life-insurance/participating-whole-life-insurance/my-par-gift.html

How does it work?

There are a number of easy ways to make a gift of Life Insurance.

1. You can take an existing policy that has finished serving its original purpose and simply have the ownership and beneficiary designation transferred to SaskAbilities. This designation cannot be changed. A charitable tax receipt will be issued for the value of the policy at the time of transfer.  Any continued premium payments also qualify for a charitable tax receipt.  Please note that there are tax advantages to retaining existing policies.  SaskAbilities strongly recommends that you discuss this matter with your insurance specialist before any transfer takes place.

2. You can purchase a new life insurance policy. After one premium payment has been paid, SaskAbilities is named as the owner and beneficiary.  You continue to pay the premiums and receive a charitable tax receipt for those payments. Again, this designation cannot be changed.

3. It may be to your advantage to name your estate as the beneficiary of your life insurance policy, and then make a same dollar amount bequest in your Will to SaskAbilities. You will not receive a charitable tax receipt for any of the premiums paid during your life.  However, your estate will be eligible to claim a donation for the full amount of the insurance proceeds.

4. You can name SaskAbilities as your beneficiary on your individual or group life insurance. You retain ownership of the policy. You can change the beneficiary designation at any time. If you are a salaried employee and have a benefit plan that has a death benefit component to it, consider naming SaskAbilities as the beneficiary.  However, you will not receive a charitable tax receipt for any premiums paid during your lifetime.

Please Seek Expert Advice:  A life insurance specialist should review in detail what would best fit your needs.  Before considering a planned gift of life insurance, you should already have satisfied any need for life insurance for the protection of your family.

Charitable Remainder Trust

A Charitable Remainder Trust is a way of giving assets to SaskAbilities through a trust agreement.  A charitable remainder trust can be established by contributing bonds, stock securities, mutual funds or real estate to a trustee who holds and manages it.  You may choose a charitable remainder trust because you have an asset that you would eventually like to give to SaskAbilities, but you need the income it now provides, or you do not wish to part with your asset right now.

How does it work?

You receive a charitable tax receipt for the fair market value of the remainder interest, which is calculated by a Canada Revenue Agency formula that takes into account your life expectancy and the present value of the property being transferred into the trust. Valuations are required to determine a value of the remainder interest.

Before creating a trust, the total cost of setting up and administering it must be weighed against the future reduction of tax and other benefits that it will provide.  The assets within the charitable remainder trust should be worth at least $150,000 to offset fees. The fees are tax-deductible.

Important points to remember include:

• The transfer of assets to the trust is irrevocable, which means you cannot reverse the transfer once it has been completed;
• The amount of the charitable tax receipt is determined by a formula set down by Canada Revenue Agency, which takes into account your life expectancy and the present value of the assets;
• Valuations are required to determine the value of the remainder interest.

Please Seek Expert Advice: If you are thinking about transferring assets that have appreciated in value, you should seek expert advice from a tax specialist or financial planner.

Registered Assets

Donating Registered Assets such as a Registered Retirement Savings Plan or a Registered Retirement Income Fund allows you to create a legacy for SaskAbilities – once your needs and those of your loved ones have been met.   Donating to SaskAbilities all or part of an RRSP or RRIF is an effective way to reduce the taxes payable by your estate.

If you die without a surviving spouse or qualifying dependents, the full remaining value of your RRSP or RRIF is added to your income in the year of death, and your estate must pay the taxes. RRSPs and RRIFs often create large tax liabilities for a taxpayer in the year of death, since the entire amount of the plan is included in the taxpayer’s income in one year.    If your RRSP or RRIF has a registered charity as the direct beneficiary, your estate will receive a donation receipt for the entire value of the plan. The credit arising from this donation will offset the tax liability.  As a result, the entire value inside an RRSP or RRIF can be given to a registered charity in the year of death with no tax implications.  A gift of a RRSP or RRIF may enable you to fulfill dual goals of supporting SaskAbilities while reducing the amount of taxes that your estate would otherwise have to pay.  

How does it work?

There are two ways to donate the proceeds of an RRSP or RRIF:

• You can name SaskAbilities as the direct beneficiary of your RRSP or RRIF. Upon your death the proceeds will be paid directly to SaskAbilities without going through probate.
• You can name your estate as the beneficiary of your RRSP or RRIF and leave instructions in your Will to donate all or part of your RRSP or RRIF to SaskAbilities. You may specify a percentage of the RRSP or RRIF or a specific dollar amount to be donated. The donation qualifies for the charitable Will bequest donation tax credit for up to 100% of income in the year of death and in the year preceding.  Note: The trustee of your RRSP or RRIF will withhold taxes and probate will apply when choosing this option.

Please Seek Expert Advice: When considering a planned gift, it is important to assess your overall financial circumstances. Therefore, it is important to consult your financial advisor when making a planned gift so you can choose a strategy which best provides you or your estate with the largest tax savings while fulfilling your charitable goals.

Gift – Plus Annuity

A Gift-Plus Annuity allows you to make a gift to support SaskAbilities while at the same time receiving a guaranteed predetermined income for life.  Income from a charitable annuity can have tax advantages.  It is an ideal choice if you are concerned about the amount of tax that you are now paying on your interest-bearing investments. Annuities are high quality, guaranteed investments that provide regular payments to you and/or your spouse.

How does it work?

A gift annuity is a contractual arrangement with a commercial annuity provider.  SaskAbilities works with financial advisors to explore the variety of options available in the marketplace.   The following information is required to obtain quotations – your age, the annual payment amount you would like to achieve from the annuity and the lump sum you wish to transfer. 

The quotations from the top annuity providers (life insurance companies) are received and forwarded to you.  Once the details of the annuity have been decided, you transfer the lump sum to SaskAbilities.  We then purchase a prescribed annuity from a reputable commercial institution on your behalf.  Cash in excess of the amount required for purchase of the commercial annuity is retained by SaskAbilities and used for charitable purposes.   Annuity payments are then made directly to you, the donor.

Please Seek Expert Advice: SaskAbilities strongly recommends that you seek professional advice to ensure your financial goals are considered, your tax situation reviewed, and your planned gift is tailored to your circumstances. 

Residual Interest Gift

A Residual Interest gift is a method of giving in which property is deeded to SaskAbilities.  However, you retain the use of the property for the rest of your life or a term of years. For example, you might give a residual interest in your cottage, but continue to use it and enjoy it over your lifetime.

These types of gifts are usually given by those who plan to give the property through a Charitable Will Bequest to SaskAbilities but would like to reduce income tax now, without any changes in their living arrangements. 

How does it work?

The property is appraised, and the value determined. A deed is drawn up and signed by you and SaskAbilities. You are entitled to a charitable tax receipt for the present value of the residual interest. You make a gift of property to SaskAbilities and retain the use of it for life.

Please Seek Expert Advice: If you are thinking about transferring assets that have appreciated in value, you should seek expert advice from a tax specialist or financial planner.

Real Estate Gift

A gift of Real Estate allows you to give an immediate gift and receive an immediate charitable tax receipt for the fair market value of the property.  Gifts of Real Estate include principal residences, farms, land and commercial property.  Giving a gift of real estate allows you to simplify your estate and give to SaskAbilities during your lifetime. This type of gift may be appealing if you are looking at ways to reduce your income tax now and are not in need of the dollar proceeds of the sale.

How does it work?

An independent appraiser must appraise the property.   SaskAbilities begins the valuation process.  After the fair market value is determined, you sign and deliver a deed transferring the property to SaskAbilities.  A charitable tax receipt is then issued for the fair market value as of the day on which the transfer takes place.  Please note that some conditions apply to the acceptance of these types of gifts, for example, an environmental audit of the property may be required.

Please Seek Expert Advice: If you are thinking about transferring assets that have appreciated in value, like real estate, you should seek expert advice from a tax specialist or financial planner.

STEP 2:

Choose a reputable charity that aligns with your values and objectives.

Does SaskAbilities’ impact and does its service delivery align with your values?

STEP 3:

Seek professional guidance to understand the financial aspects of your gift.

Do you have an existing financial advisor? If not check out Will Power’s website to find one.

STEP 4:

Common options include bequests, charitable remainder trusts, charitable gift annuities, and more.

What makes the most sense for you and your family?

STEP 5:

Determine what assets you will use to fund your gift, such as cash, stocks, real estate, or other investments.

How will you be using your assets in the future?  Your financial advisor will be able to help you.