There are many ways you can leave a legacy to Canadian hockey by making a charitable gift to the Hockey Canada Foundation. Whether you decide to make an outright gift of cash or property, or make a deferred gift through a bequest in your will, you can do so knowing that your contribution will have an enduring impact on those whose lives are shaped by Canada's game.
Basic gift planning can substantially increase the impact your gift will have, while at the same time ensuring you receive all the available tax and estate planning advantages. We encourage you to contact the Hockey Canada Foundation for assistance in determining the best way to make your gift and help carry on Canada's place as the world leader in hockey.
Gifts of cash
A gift of cash is the simplest way to make a contribution to the Hockey Canada Foundation and give something back to the game. Your gift will be immediately put to work on behalf of Canadian hockey. At the same time, you will receive a charitable donation receipt for the full value of the gift. Gifts of cash can be made by cheque, money order, credit card or in currency.
Gifts of publicly-listed securities
The recent permanent reduction in the capital gains inclusion rate for the gifting of publicly-listed securities make this an attractive way to make a gift to the Hockey Canada Foundation in support of hockey development. A gift of securities can include shares, bonds, bills, warrants and futures traded on prescribed stock exchanges. In order to qualify for the capital gain inclusion rate, the securities must be given in kind.
You will receive a tax receipt for the fair market value of the securities based on the closing price of the day when the transfer is completed. You will also receive special tax treatment for any taxable capital gain on the gifted securities as reported on your income tax return. Because the taxable portion of the capital gain is reduced by 25%, a larger gift than otherwise possible can be generated using this gift planning strategy.
Gifts of real estate
You can make a gift of real estate to the Hockey Canada Foundation and receive a charitable tax receipt for the fair market value of the property. If the gift is a principle residence, no capital gains will be triggered.
The foundation must determine the fair market value of the property using two or more professional appraisals that satisfy both you and the foundation. The foundation must also conduct appropriate due diligence prior to accepting any gift of real estate.
Gifts in kind of tangible property
Other types of tangible property such as collections, equipment, furnishings and household items can be gifted to the Hockey Canada Foundation. The amount of the donation receipt for in-kind gifts is the fair market value of the property on the date of legal transfer of ownership to the foundation. In-kind gifts must be accompanied by a well-documented professional appraisal.
This approach allows a larger contribution than can normally be made from income, because any tax owing on appreciated property is usually offset by the tax credits generated by the gift.
Gifts by bequests
A gift through your will is the simplest way to make a deferred charitable gift and leave a legacy in remembrance of Canadian hockey. By having a valid will in place and carefully planning your bequest as part of an estate plan, you can potentially eliminate all taxes payable on your terminal income tax return. Your executor can claim bequests equal to 100% of the income on your final two tax returns and effectively redirect money that would have been paid in taxes to benefit Canadian hockey.
To make a bequest, we recommend you speak to a lawyer about drafting or revising your will. It is important that your bequest to the Hockey Canada Foundation is properly designated in your will to ensure your wishes are carried out. We can provide you or your professional advisor with sample bequest language to ensure this happens.
A bequest can be made the following ways:
A donation using life insurance can be an affordable way to generate a significant charitable gift and help protect Canada's traditional place in the game of hockey.
You can do so by transferring ownership of an existing policy designating the Hockey Canada Foundation as owner and beneficiary. You will receive a charitable receipt for the full cash surrender value of the policy along with any accumulated dividends. If premiums are still payable, you can continue to pay the premiums and receive a tax receipt for each additional premium paid.
You can also purchase a new policy and irrevocably name the Hockey Canada Foundation as owner and beneficiary. A charitable tax receipt is provided annually for premiums paid or for the face value of the policy upon your death.
In cases where you name the Hockey Canada Foundation as beneficiary while retaining ownership of the policy, no charitable tax receipt is issued. However, your estate will receive a receipt for the full value of any resulting gift received by the foundation.
Gifts of life insurance pass outside of the estate and are not delayed or subject to probate concerns. This ensures the amount of the gift does not change due to payment of taxes, legal or administrative fees.
Gifts using a charitable remainder trust
If you would like to make a significant gift to Canadian hockey and still receive income on your assets during your lifetime, you can establish a Charitable Remainder Trust (CRT). This is a gift to the Hockey Canada Foundation by means of a trust agreement. The CRT can be funded with cash, securities, real estate or other forms of real property deemed to be acceptable by the trustee who manages the trust. Income earned through the trust is paid to you or your beneficiary. Upon termination, the remainder of the trust is distributed to the foundation and not subject to probate or other administrative costs.
CRTs can be established during your lifetime or under the terms of your will. This allows a substantial gift to be made without losing the benefit of the revenue your capital is earning. In fact, when the tax advantages and professional management of the funds are considered, you may find your net return is higher using a charitable remainder trust. A tax receipt will be issued for irrevocable trusts based on the present value of the residual interest that will eventually pass to the foundation.
Gifts of residual interest
A residual interest gift allows you to make a significant gift of capital property without losing the use of the property during your lifetime. By making an irrevocable gift of real estate, a principle residence or a work of art, you can continue to enjoy the use of the property until your death, at which time the residual interest passes to the Hockey Canada Foundation. You receive a tax receipt for the present value of the residual interest and the gift is not subject to probate.
Gifts of retirement funds
If you will not be survived by a spouse, are without children or have children but have made other arrangements for them, retirement funds can be used to make a gift to the Hockey Canada Foundation.
Naming the foundation as a direct beneficiary of all or a portion of any retirement funds remaining at death will qualify as a charitable donation and generate a charitable receipt to your estate for the market value of the plan.
The information provided above is general in nature and intended to be used for illustration purposes only. It is not intended to serve as a substitute for professional guidance. The Hockey Canada Foundation encourages all donors who are planning a significant gift to seek the appropriate independent legal and financial planning advice.