Charitable giving lets you support the causes you care about and leave a lasting legacy. With some planning, you can also make your gift go further. In Canada, donations to registered charities earn a tax credit, which can reduce your income tax or your estate’s final tax bill. Life insurance can turn modest premiums into a much larger future gift.
Before you give, the Canada Revenue Agency recommends a few simple checks. Read its guide on what to know before you give.
You keep ownership of a life insurance policy and name a registered charity as beneficiary. When you pass away, the charity receives the death benefit. In addition, your estate gets a donation tax credit that can reduce its final tax bill.
Alternatively, you can transfer ownership of a policy to a charity now. The charity becomes owner and beneficiary. You may then claim a tax credit for the policy’s value and for the premiums you continue to pay.
You contribute to a charitable fund and receive a tax receipt right away. Then, you recommend grants to the charities you choose over time.
A private foundation gives you more control over how and when you give. However, it involves more setup and ongoing administration.
Of course, you can also give directly to the registered charities you care about, during your life or through your will.
Our experienced consultants can help you:
With careful planning, your charitable giving can make a meaningful difference while also supporting your financial goals. Contact us to explore your options. The first conversation is free.
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