Gifts and Bequests
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Gifts and Bequests

DONATIONS AND TENPAI JINDAG CONTRIBUTIONS THROUGH PAYPAL

Dear Friends of the Riwoche Temple:

We are pleased to offer the convenience of PayPal as means to make donations to the Riwoche Temple and the work of His Holiness Phakchok Rinpoche and Khenpo Sonam Rinpoche. You can make a one time donation, or if you prefer, you can set up a monthly recurring donation that will be withdrawn from your PayPal account. This latter way is ideal for Tenpai Jindag who want to make their monthly contribution without the inconvenience of post-dated cheques.

Either way, you are free to decide the amount, and for recurring donations you are able to cancel them at any time. Your full address will be included in the PayPal form so we know where to send your tax receipt. Please ensure this information is up-to-date.

Type in the amount and (if applicable) the time period you would like in the boxes below and click the button to go to PayPal, with our thanks for your help in spreading the dharma and the Riwoche lineage.

Sincerely,

Diane Costa
Chair, Riwoche Temple


Tenpai Jindag
$90 + $3.05 handling fee
recurring monthly.
Monthly donation of
$ for months.
$
One-time donation in
the amount of your choice.
 

GIVING THROUGH YOUR WILL

How it Works

A will is a formal legal document in which you specify how you wish your property to be disposed of after your death. If you should die without a will, your lifetime accumulation of wealth will be distributed according to provincial laws — regardless of the wishes of your family. Fortunately, making a will is not complicated when it is done with legal assistance.

Providing for a charitable gift in your will can easily be accomplished by including a bequest to the charity of your choice. "Bequest" is simply a term used to describe a gift in your will, specifying that a certain percentage of your estate, a particular asset, or a specific dollar amount is to be directed to a named beneficiary.

While there are currently no estate or inheritance taxes in Canada, there are certain "deemed dispositions" and income taxes payable under the Income Tax Act that can create tax liabilities. A charitable bequest, however, can provide significant tax advantages to your estate.

When you make a bequest to a charity, your estate is entitled to a gift receipt for the full value of the bequest. If the total bequest exceeds 100% of the net income on your final tax return, the excess may be carried back to the previous tax year.

Bequests: The Importance of Having a Will

As many as seven in 10 Canadians do not have a will. This is unfortunate, because if you leave no specific instructions as to how your property is to be distributed, provincial law will apply, which may not correspond to your wishes. If you have no heirs, the provincial government will add all of your property into its general revenues.

Each year, thousands of individuals designate a portion of their assets by bequest to benefit charitable organizations. Gifts by will are becoming an increasingly important part of the Canadian philanthropic tradition, because they enable individuals to make significant gifts that they may not have been able to make while living. Bequests can take various forms.

What to Do

A bequest can be for an unrestricted or designated gift in the form of cash, property or securities. It can also take the form of a "residual legacy" whereby a charity received all or a portion of whatever remains of your estate after all debts, taxes, expenses, and other bequests have been dispensed. Should you wish to make a bequest through your will, you can contact a lawyer to assist you with the appropriate legal wording.

A specific bequest directs that a charitable organization is to receive a specific piece of property. For example: "I give to Riwoche Tibetan Buddhist Temple, Toronto, Canada, all of my shares in XYZ Mutual Funds to be used for the general purposes of said charity."

A general bequest directs that the charity receive a specific amount of a certain kind of property, usually a sum of cash. For example: "I give to Riwoche Tibetan Buddhist Temple, Toronto, Canada, the sum of $100,000, to be used for the general purposes of said charity."

A residual bequest designates all or a portion of whatever remains of the estate after all debts, taxes, expenses and all other bequests have been paid. For example: "I give to Riwoche Tibetan Buddhist Temple, Toronto, Canada, fifty percent (50%) of the rest, residue and remainder of my estate, to be used for the general purposes of said charity."

A contingent bequest takes effect only if the primary intention of your will cannot be met (for instance, if the primary beneficiary does not survive you). This ensures that property will pass to the charity rather than unintended beneficiaries (such as the government).

In all of these examples, the gifts are offered without restrictions. However, any of them could be designated as a restricted bequest for a specific purpose. For example, if you wish to memorialize a family member or an honoured colleague, you can establish a fund named after that person that will provide support for a program of interest to you or the individual honoured.

Once the will is executed, it is also advisable for you to provide Riwoche Tibetan Buddhist Temple with a copy of the clause pertaining to the bequest for its files and future reference.

There are certain tax benefits to the donor. In the year of death, 100 percent of the bequest is credited as a charitable donation with a one-year roll back provision. This means that a bequest to charity will reduce the amount of taxes owed by the estate by up to 100 percent of net income, if carried back to the immediately preceding year with a similar limit.

Sample bequest wordings — Let me count the ways ...

  1. Capital Bequest – Unrestricted use
    • I direct my Estate Trustee to transfer as a gift to Riwoche Tibetan Buddhist Temple the sum of $_____, (____% of my estate or residue of my estate), to be used for such purposes in connection with the work of Riwoche Tibetan Buddhist Temple as the Board of Directors may from time to time determine.
  2. Capital Bequest – Restricted use
    • I direct my Estate Trustee to transfer as a gift to Riwoche Tibetan Buddhist Temple the sum of $_____, (____% of my estate or residue of my estate), to be used for ______.
  3. Endowment Income – Unrestricted use
    • I direct my Estate Trustee to transfer as a gift to Riwoche Tibetan Buddhist Temple the sum of $_____, (____% of my estate or residue of my estate), to be held in trust and kept invested and the income from which shall be used for such purposes in connection with the work of Riwoche Tibetan Buddhist Temple as the Board of Directors may from time to time determine.
  4. Endowment Income – Restricted use
    • I direct my Estate Trustee to transfer as a gift to Riwoche Tibetan Buddhist Temple the sum of $_____, (____% of my estate or residue of my estate), to be held in trust and kept invested and the income from which shall be used for ______.
  5. Reversionary Bequest – Unrestricted use
    • I direct my Estate Trustee to transfer as a gift to Riwoche Tibetan Buddhist Temple any bequest or residuary gift contained in this will to any charitable organization or institution or to any person or persons in trust for such organization or institution that cannot take effect in whole or in part because of any legal prohibition or because of the inability of any such organization or institution to take for any reason whatsoever. Such gift is to be used for such purposes in connection with the work of Riwoche Tibetan Buddhist Temple as the Board of Directors may from time to time determine.
  6. Contingent Bequest – Unrestricted use
    • If any of the beneficiaries named in this will should die before becoming entitled to receive their distributive share of my estate, I direct my Estate Trustee to transfer the share to which such beneficiary would otherwise have been entitled to Riwoche Tibetan Buddhist Temple to be used for such purposes in connection with the work of Riwoche Tibetan Buddhist Temple as the Board of Directors may from time to time determine.
  7. Specific Property Bequest
    • I direct my Estate Trustee to transfer to Riwoche Tibetan Buddhist Temple my [specific property].
  8. Registered Funds Bequest – Unrestricted use
    • I direct my Estate Trustee to transfer to Riwoche Tibetan Buddhist Temple the sum of $_______, (_____% or all of any assets which I may own) which are registered either as a RRSP or RRIF, to be used for such purposes in connection with the work of Riwoche Tibetan Buddhist Temple as the Board of Directors may from time to time determine.
  9. Registered Funds Bequest – Restricted use
    • I direct my Estate Trustee to transfer to Riwoche Tibetan Buddhist Temple the sum of $_______, (_____% or all of any assets which I may own) which are registered either as a RRSP or RRIF, to be used for _____________________.
  10. Power to Vary Purposes Clause
    • This clause empowers a charity to vary the purposes for which a gift is used if circumstances make it impossible or impracticable to carry out the original wishes or purposes of the donor. It is recommended that this clause be used whenever a restricted or designated gift is made.

If, in the opinion of Riwoche's Board of Directors, it should become impossible, inadvisable or impracticable to apply the said bequest's funds or income for the said purposes, the Board of Directors shall use the said bequest or such part thereof in such manner as in its discretion may seem to be to the best advantage of Riwoche Temple for other purposes related as closely as possible to the spirit and intention of this gift. However, if in the opinion of the Board of Directors it is impossible, inadvisable or impracticable to utilize the said bequest or such part thereof for such related purposes, then the Board of Directors shall use the said bequest or such part thereof for such other purposes of Riwoche as the Board of Directors may determine. (Source: Canadian Association on Charitable Gifts)

Benefits to You

  • You have the use of your assets during your lifetime.
  • There are many options to ensure that your bequest is personally meaningful.
  • Your estate receives a tax receipt.
  • A bequest is a revocable gift and can be altered at any time should your circumstances change.



GIVING THROUGH LIFE INSURANCE

How it Works

Life insurance is an economical vehicle for giving a larger and more lasting gift to a charity than might otherwise be possible, without drawing on your assets now or depleting your estate. There are several ways of leaving a legacy through life insurance, as outlined below. By giving through life insurance, you can make a significant future gift with only a small annual or monthly outlay.

Life insurance is a particularly effective gift because of the leveraging effect. As long as the charity is named as the beneficiary under the policy, the proceeds will not form any part of the donor's estate and there are no probate, legal, or other administration fees. Your gift will then go to work at the charity quickly. You may also use an insurance policy to replace a cash gift that you make today. If you choose to make a large cash donation to a charity now, a policy can be used to replace those assets in your estate. Your gift will earn tax credits, which can be carried forward for the next five taxation years. This tax saving can be used toward the premium for the insurance.

What to Do

There are three ways to give.

  • You can give an insurance policy you already own to the charity,
  • You may take out a new policy and give absolute ownership to the charity; or
  • You can name the charity as the beneficiary of an insurance policy while you remain as the owner.

If you give absolute assignment to the charity of your life insurance policy, whether it is either a new or existing policy, you will receive a donation receipt for the premiums paid each year. No receipt is issued for the death benefit. If you donate an existing policy that has cash surrender value, there may be tax implications upon gifting this policy. A donation receipt will be issued for this value that would offset any tax owing.

If you name the charity as beneficiary of the death benefit and remain as the owner of the policy, no receipt is given for the annual premiums but a receipt is issued back to the estate in the year of death for the amount given through the policy. This receipt is then used to offset taxes owing on such assets as RRIFs or capital assets that are subject to capital gains tax. If structured properly, taxes owing in the estate can be significantly reduced or even eliminated. The receipt can be carried back one year if the whole receipt cannot be utilized in the year of death.

Gifts of Life Insurance: Two Ways to Give

  1. Give the Policy to Riwoche Tibetan Buddhist Temple
    • If you name Riwoche Tibetan Buddhist Temple as the owner and beneficiary of a life insurance policy, you are entitled to a charitable donation receipt for the value of the policy, normally the cash surrender value. The cash surrender value is defined as simply the amount you would receive if you cashed in the policy. If premiums are still owing and you pay them, you are eligible for a charitable donation receipt for each premium paid. You can also purchase a policy with the intention of donating it to the Temple. You probably won't have to pay the premiums indefinitely, because most whole life policies have a premium offset option. This means that, after a period of about seven to 10 years, the dividends earned by the premiums are sufficient to cover the annual premium, and you no longer have to pay to keep the policy in force. This kind of gift benefits you because it enables you to be a major donor for Riwoche's future at a modest current cost — a cost further reduced by the substantial tax savings. This is also appealing to Riwoche Temple because the Temple can count on a substantial future sum and, if necessary, borrow against the policy in the meantime.
  2. Name Riwoche Tibetan Buddhist Temple as Beneficiary
    • You can name Riwoche Tibetan Buddhist Temple as beneficiary of a policy while still retaining ownership. This is advisable if you wish to have access to the cash value and be able to name a new beneficiary should your circumstances change. Of course, when you retain ownership, you are not entitled to a donation receipt for the current value of the policy, nor for any future premiums you pay. Your estate is entitled to a donation receipt if the Temple is a beneficiary through your will or on the policy. A tax credit will be allowed on your final income tax return and for the previous year if the entire bequest is not reportable on your final return. If you choose to donate a life insurance policy or to name Riwoche Tibetan Buddhist Temple as beneficiary, leave instructions with the executor of your estate to notify Riwoche of your death. At that time, Riwoche may file a claim to the insurance company for the benefits.

Benefits to You

  • You receive a tax receipt, significantly reducing the cost of the policy (provided that the charity is the owner and beneficiary of the policy).
  • You pay for the gift in small installments over several years.
  • Your gift doesn't reduce the amount of money in your estate available to your family.
  • Most or all of taxes owing in the year of death may be eliminated if structured properly.
  • Since the charity is named directly as the beneficiary, the proceeds cannot be contested and will remain confidential.

Plan Your Gift

Through planned or deferred giving, you can have a great impact on the future, while optimizing your tax savings and enjoying other financial benefits.

A bequest is a revocable gift; it can be changed at any time should your circumstances change.