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 You can make a one time donation, or if you prefer, you can set up a monthly recurring donation that will be withdrawn from your PayPal account.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.
GIVING THROUGH YOUR WILL
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 ...
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
GIVING THROUGH LIFE INSURANCE
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.
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
Benefits to You
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