There are many ways to give beyond a gift of cash. If you are interested in using any of the ways listed below, a financial planner can assist you in determining which best fits your financial situation.
Making a bequest through your will is a simple but powerful way to give. Bequests can take many forms – they can be large or small; restricted or unrestricted; a specific sum or money, a specific asset such as real estate or securities, or a % of your estate.
As part or your will, your bequest should be prepared in consultation with your lawyer. To ensure that your gift is honored and used in the way you intended, it is important that you discuss your wishes with the FMCIC Gift Planning Office.
The FMCIC is a flexible organization that adapts to the changing needs of our churches, our communities, our nation and beyond. Therefore, the specific ministry you name in your will today may, over time, change its name, alter its objectives, or diminish or expand its focus. We are committed to making every attempt to honour your wishes as closely as possible. We ask that your bequest allow for some flexibility. If you are designating funds to specific church or ministry area, please include a clause such as: “If, through the passage of time, this bequest becomes obsolete, permission is given to alter the terms adhering as closely as possible to my original wishes.”
Gifts of Life Insurance
A gift of life insurance can be a very affordable way to make a significant gift to The Free Methodist Church in Canada. This giving method can provide a significant contribution for a comparatively small premium cost. In addition, tax benefits can be achieved and the value of your gift is not reduced by taxes or probate and administrative costs. In fact, a gift of life insurance is independent of you estate and therefore does not go through probate and cannot be challenged.
Gifts of life insurance can be made by purchasing a new policy or donating an existing one. You can either retain ownership of the policy and name the ministry as the beneficiary or you can transfer ownership of the policy to The Free Methodist Church in Canada. Transferring ownership provides you with a donation receipt for the cash surrender value of the policy immediately, just as if you had made a cash donation.
Gifts of Property
Gifts of property can be made a couple different ways, You may choose to give the property outright or you may decide to irrevocably assign ownership of the property now and receive the tax benefits while continuing to enjoy the property for the rest of your life. Depending on your wishes, and the type and nature of the item donated, The Free Methodist Church in Canada may retain the gift or sell it and use the funds to support its ministries.
The Free Methodist Church in Canada welcomes most gifts of real estate, investments, equipment and other tangible personal property. “Gifts in kind” are often a very welcome resource especially for our church plants.
When a gift of property is made, a donation tax receipt can be issued for the current fair market value of the item. In some cases an independent appraisal may be required to determine the value.
Gifts of publicly traded securities
Gifts of securities have been an attractive option for many givers. In May 2006 the Canadian federal government made a change in how the tax on gifts of securities would be treated. This change, made in the federal budget, now allows givers to receive significant tax benefits, making a gift of securities even more attractive than every.
Now a gift of publicly traded securities is exempt from capital gains taxation. So if you own securities that have appreciated in value, if you donate them you will not be taxed on the difference between their current value and the amount you paid for them.
Charitable Remainder Trusts
Perhaps you own assets such as real estate properties and investments that provide you with a stream of income. You may decide you want to leave the assets to a ministry but you need to retain the income they generate. While you could include these assets in a bequest through your will, another option would be to use a Charitable Remainder Trust.
A charitable remainder trust will allow you to make the gift now and receive the tax benefits immediately, while allowing you to continue to receive the income generated by your assets. The trust can be set up to allow the income to continue as long as you, or you and your spouse live, or for a specified number of years. Since the ownership of the assets are transferred to The Free Methodist Church in Canada, they will not be subject to probate costs or estate taxes.
Charitable Gift Annuities
There are circumstances where a Charitable Gift Annuity may make the most sense for your financial situation. This gift method involves making an irrevocable donation, part of which is used to purchase an annuity, the remainder becomes an immediate gift. When the gift is initially made and the annuity purchased, the giver will receive a donation tax receipt for the amount of the gift that exceeds the contribution needed to purchase the annuity.
The annuity is purchased from an insurance company and generates an income for you for the rest of your life. The amount of income generated depends on the size of the contribution as well as your age. Often the income payments are larger than interest income from other types of investments.