Leave a Legacy Temiskaming


Charitable donations can be made through gifts of life insurance, outright gifts of cash, pledges,
securities, bequests in wills, in memoria and special occasion gifts and payroll deductions.


A gift of life insurance is an attractive way to make a charitable donations, at a modest cost. Talk to
your life insurance agent or to the charity of your choice:

1. Transfer an existing paid up policy to the charity, and receive a charitable tax receipt for
the cash surrender value. This is an attractive option for the many older policies which have long
since been paid up. Originally for a modest amount, many have grown with the reinvestment of
dividends. The same could be accomplished with any policy.

2. Designate the charity as beneficiary on a new or existing policy. The estate of the insured will
receive a charitable tax receipt for the face amount of the policy; The charity receives a substantial
donation to benefit the community. The tax deduction can be applied by the estate in the year of
death, and carried back to the preceding year.

3. Transfer a new or existing policy to the charity with a pledge to pay the premiums each year.
You receive a charitable tax receipt for the amount of the premiums paid each year. No receipt is
issued for the proceeds of the life insurance on the death of the insured.

4. Purchase wealth replacement insurance: make a cash donation now to the charity, and use the
tax saving to buy life insurance to replenish your estate for your family;

5. Buy a life insurance policy equivalent to the value of your RRIF or RRSP, and designate the
charity as beneficiary of the RRIF or RRSP. On your death, the charity issues a charitable tax
receipt which offsets the tax impact; your estate receives the life insurance proceeds. The minimal
cost of the insurance can double the funds available to your estate and the charity.


Make a lump sum donation to the charity and receive a charitable tax receipt to apply to reduce
this year's income tax. Any excess can be carried forward to succeeding years.


Pledge a fixed amount over a period of years. The charity will send you a reminder each year, and
issue a charitable tax receipt as the pledged amounts are received.


Give shares, mutual funds, bonds, or other capital property in specie to the charity. Tax on the
capital gain is reduced by 50% and the charity issues a charitable tax receipt of the fair market value.
Any shares or mutual funds which have appreciated in value, and shares received on demutualization of the
insurance companies, fit this bill.


The 2006 Federal Budget greatly improved the tax situation for donations of stocks and securities to charities.
Selling appreciated stocks or securities results in capital gains tax being payable. Since 1997 the capital gains
tax was reduced by 50% if the security was donated to a charity. Under the provisions of the 2006 Budget, the
capital gains tax is now reduced to zero! Canadians who donate stock to their favourite charity will now pay no
capital gains tax on the growth of those shares, and will of course get a tax receipt for the full value of the shares.

Many Temiskaming residents hold shares of demutualized insurance companies and a telephone utility company
as well as other securities with large accumulated capital gains. By donating these to their favourite charity, they
can not only benefit the charity, but avoid all capital gains tax which otherwise will be owing on the sale of the
shares or the death of the owner.

Talk to your lawyer, financial planner or accountant about how you can donate your appreciated shares to your
favourite charity and make a difference in lives that follow.

RRSP's and RRIF's

These will be fully taxable on death of the second spouse. Designate the charity as beneficiary and
the estate will receive a charitable tax receipt to offset the tax. If this would deplete your
estate of assets for your beneficiaries, see the suggestion above under Life Insurance.


Bequests under your will to the charity result in a charitable tax receipt for your estate.
The tax deduction can be applied to income received by you in the year of death, and carried back to claim
a refund from the previous year.

Bequests can be for a specific amount or a share or percentage of the residue of your estate.

Consider: a $10,000 bequest to the charity on the second spouse's death with the balance
of your estate to be divided equally amongst four children. The charitable tax deduction
can reduce the cost to your estate up to 46%, reducing the cost to $5600. The share taken
from each child is only $1400. How better for $1400 can you benefit the community in which
you lived, and memorialize your name as the donor?

Bequests to the charity can be:

1. For a fixed amount;
2. For a proportion or percentage of the estate;
3. Contingent, that is, only effective if your primary beneficiary predeceases you;
4. In the form of a trust where the income is paid to another beneficiary for life and on his or
her death the capital is payable to The charity;
5. After providing a sufficient amount for family, the balance can be donated to The charity;
6. A gift of last resort if all members of your family die.


Make a donation to the charity in memory of someone who dies. You will receive a charitable tax
receipt; the family receives an acknowledgement of your gift; your gift and the deceased will be
remembered in the charity's annual report.

Your gift will benefit the community and will last far longer than flowers.


Make a donation to the charity as a wedding, anniversary, birthday or Christmas gift. You will
receive a charitable tax receipt; your gift and the person celebrating the occasion will be
remembered in the charity's annual report. Your gift will benefit the community forever.


Honour a retiring employee or fellow employee on retirement with a scholarship in his or her
name. The employee's name will live on forever, and a worthy student will be assisted in
obtaining post secondary education.


Arrange for a payroll deduction to be made in favour of the charity. A weekly deduction of $9.60
makes a gift in the year of $500! A dollar a week matched by the employer makes the same
amount in less than 5 years.


Some former residents whose hearts still lie in the Tri-Towns have directed their United Way
payroll deduction be forwarded to a local charity.