Planned Giving Program        
(Another way to help our orphans)

The Animal Rescue League is a private non-profit charitable organization that provides temporary housing and care to the stray and unwanted animals in our community.

What is Planning Giving?

Planned giving is the commitment to make a gift to the Animal Rescue League either today, or at some point in the future.

Planned Gifts include, but are not exclusive, to:

• Bequests in a will
• Life Insurance Policies
• Endowments
• Memorial Gifts
• Charitable Gift Annuities
• Charitable Remainder Trusts
• Gifts in Kind (real estate, securities or other capital property)

A planned gift to the Animal Rescue League makes it possible for you to be part of our commitment to helping the lost and unwanted animals in our community.  You will have the satisfaction of knowing that at some time in the future your personal legacy will contribute significantly towards quality care for the sad and lonely animals that find themselves in our shelter.  Many people like you, passionately share our vision and want to assist us in achieving our mission by planning a significant charitable gift to the Animal Rescue League.

Our Executive Director will be pleased to work with you, your family and financial advisors to design the best possible donation situation for you, one that answers your philanthropic goals and maximizes your tax benefits.  All gifts to the Animal Rescue League are significant.  Our donors are our most important resource and we are committed to treating them with dignity and respect.  All inquiries are held in strictest confidence.

Wills and Bequests

Bequest is a term used to describe a gift that you are leaving to the Animal Rescue League through your will.   Such gifts are vitally important to the League’s ongoing work.  There are several ways you can make a bequest to the Animal Rescue League.

• Specific bequest, where you leave a specific amount or percentage of your estate to the League.
• Residual bequest, where the League will receive the remainder of your estate after you have provided for your loved ones.
• Contingent bequest, where all or a portion of your estate is left to the League only in the event of the prior death of certain named individuals.

BENEFITS OF LEAVING A BEQUEST TO THE ANIMAL RESCUE LEAGUE

• A bequest is a commitment beyond your lifetime to ensure the quality of life of the lost and unwanted animals in our shelter.
• A bequest to the Animal Rescue League allows you to make a long-term commitment without affecting your current standard of living.
• You may withdraw or alter your gift within your will at any time should your circumstances change.
• Bequests are eligible for tax receipts that can be used against the taxable income of the estate in the year of death as well as the previous year.
• You can direct your bequest to a specific purpose, or you can request that your gift be used where it is most needed.
• You may choose to let the Animal Rescue League know when you have made a bequest.  This enables us to thank you personally and recognize your contribution to the future of the shelter.

Charitable Gift Annuities

A charitable gift annuity is a way of donating an irrevocable gift to the Animal Rescue League in return for guaranteed income for the rest of your life.  The League uses the portion of your gift not used to provide the annuity income as you direct.

WHY SELECT AN ANNUITY?

• You would like to increase your current after-tax flow.
• Perhaps you want the security of a fixed guaranteed income.
• A donor in a high tax bracket might want more tax-free income.
• You appreciate the worry-free management of such an investment.
• A significant portion, if not all, of the income from a gift annuity is tax-free.  In some cases, a donation receipt is issued, resulting in further tax savings.

A portion of your gift of at least $10,000 is invested in a gift annuity, giving you a lifetime income at a fixed rate comparable to most commercial investments.  Depending on your age at the time of your gift, a substantial portion, if not all of the annuity income is tax-free.  You receive payments at your choice of intervals.

Joint annuities are available for couples, or you may purchase an annuity for another person, such as a parent or grandparent.

All quotes are confidential and will not obligate you to make a gift.

FOR EXAMPLE:

For a contribution of $10,000, Mr. Brown, age 77, receives the satisfaction of making a significant gift to the Animal Rescue League, entirely tax free, and a donation receipt for $1,838 to reduce his other taxable income.

For a contribution of $20,000, Mr. And Mrs. Pierce, ages 70 and 68, gain the pleasure of making a generous gift plus an income of $1,160 per year ($986 tax free) for as long as either of them lives.

For a contribution of $50,000, Miss Jones, age 84, receives the personal satisfaction of a major gift to the Animal Rescue League, plus a tax free life-time income of $5,100 per year and a donation receipt for $7,670.

These rates were in effect at the time these gift annuities were arranged. Current rates may differ.

Until recently, most charitable gifts to the animal Rescue League were made in cash.  But if you own publicly traded securities or mutual funds that have increased in value, you may want to consider donating the securities directly to the Animal Rescue League.

Since the 1997 budget, donors of shares that are listed on Canadian or foreign stock exchanges were required to pay tax on 37.5% of their capital gain (that is, the increase in value between the time they bought the shares and the day they are donated).  This 37.5% rate was one-half the standard capital gains inclusion rate of 75%.  In the 2000 federal budget, the standard capital gains inclusion rate was reduced from 75% to 66.7%. Correspondingly, the inclusion rate for charitable gifts of publicly traded shares has been reduced from 37.5% to 33.3%.  This measure was effective until December 31, 2001.

In addition, your charitable donation claim limit of 75% of your net income is increased by 25% of the taxable gain arising from the gift.  This means that you don’t pay any tax on the appreciation of the asset you donated and you can use some of the tax relief you get to offset taxes on other income.

In short, a gift of securities to the Animal Rescue League can be made for much less than the net cost of an equal gift of cash.  Gift planning can pay off for you and the Animal Rescue League.  See the table for an example of the tax savings you could gain.

When making a gift of securities, decide which securities you wish to donate.  Then instruct your broker or endorse the share certificates and forward them to the Animal Rescue League investment advisor account.  Contact us in advance and we will provide all the necessary information to make a smooth transfer.

The following example will illustrate the benefits of donating stock to the Animal Rescue League versus selling the stock and keeping the proceeds:

EXAMPLE:
Mr. Brown is considering a $40,000 donation to the Animal Rescue League, and has sufficient net income to claim the full amount of the donation in the year in which it is made.  Among his assets are shares from a publicly listed corporation valued at $40,000.  Mr. Brown is in the top tax bracket (for the purpose of this example assume 50%.)

Income tax and tax savings are approximate.  Mr. Brown will receive a greater net tax benefit by donating the publicly traded securities directly to the Animal Rescue League instead of selling the securities and donating the proceeds.  We recommend you discuss your gift intentions with your financial, legal or tax advisor.

Gifts of Insurance                                     

A gift of life insurance is a simple, thoughtful and often overlooked way to make a gift to the Animal Rescue League.  Insurance allows you to make a substantial gift without taking on a large expense.

By taking out a new life insurance policy, and naming the Animal Rescue League as owner and beneficiary, you will receive tax receipts for the annual premiums you pay.  Existing policies that have finished serving their original purposes can have the ownership and beneficiary designation transferred to the Animal Rescue League.  A tax receipt is then issued for the cash value.

The 2000 Federal budget allowed charities to be named beneficiaries under a life insurance policy that is owned by the donor.  As a result donors have more options on how to structure their donations using life insurance:

1. Donors can get annual tax receipts on premiums if they have the Animal Rescue League own the policy and also have the Animal Rescue League as the beneficiary of the policy.
2. Donors can get a tax receipt calculated from the death benefit in the year of death if they own the life insurance policy and name the Animal Rescue League as the beneficiary.
3. Either way, the life insurance proceeds aren’t part of the estate and there are no probate taxes and creditor claims on this amount.
4. The Animal Rescue League gets life insurance proceeds when the donor passes away – which can be a substantially larger donation than if the donor gave cash every year.
5. At death of the donor, there is no delay of payment as the life insurance proceeds are paid at once and in cash.  A bequest created by a will, in contrast, may not be settled for a considerable period of time.
6. A planned gift of life insurance saves you tax dollars today.  Not only is this important to a donor who is looking for immediate tax relief, it also means that you can make sure that the tax-deductible limit is not exceeded.
7. Some considerations include: when do you want to receive the tax credit, can you use the full deduction if taken at death, do you want flexibility in naming the Animal Rescue League, to name a few.
8. Your estate is not diminished to your heirs, because life insurance by its very nature creates an additional, separate “estate”.
9. Life insurance is not subject to probate costs or delays in settlement.  The full proceeds are payable to the Animal Rescue League at maturity or death.
10. Life insurance is not a matter of public record.  You can plan, arrange and announce the gift yourself and you will know that it will occur just as you planned.
11. Unlike a will, the gift cannot be contested.
12. It allows you to contribute significantly to the on going care of the animals at the shelter.

We recommend you discuss your gift intentions with a life insurance agent to determine which type of insurance best suits your needs. 

Charitable Remainder Trusts & Gifts of Residual Interest 

Many people are choosing to name the Animal Rescue League in their wills.  If you have cash or an asset that you have considered leaving to the Animal Rescue League in your Will but would like the tax benefit now, then a charitable remainder trust or a gift of residual interest may be your answer.

A charitable remainder trust pays you an annual income for life from your invested principal.  A gift of residual interest allows you to donate an asset today (personal residence, work of art, investment property) and enjoy the use of it for the rest of your life.

A charitable remainder trust is a gift that is invested to give the donor an ongoing income.  The gift, in the form of cash, stock, bonds or real estate, is “irrevocable” since it cannot be taken back once made.  Your gift is held in trust, which can be administered by you or a professional of your choice.  You continue to receive an annual income for life from the trust.  A charitable remainder trust generates a tax receipt when you make the gift.  The allowable tax credit is based on the cash amount or the market value of the property, your age, and current interest rates.

A gift of residual interest allows you to donate an asset today (personal residence, work of art, investment property), and enjoy the use of it for the rest of your life.  An immediate tax receipt is issued for the fair market value of the donated asset.

BENEFITS TO YOU

• You receive an immediate tax receipt for the present value of the donated asset.
• You receive an annual income from the assets in the Trust.  In the case of a gift of residual interest, you retain the use of the gift for the rest of your life.
• Irrevocable trusts are not included in the value of your estate, thus avoiding probate fees.
• Your gift is confidential, and unlike a bequest, cannot be challenged in court.

We recommend you discuss your gift intentions with your own financial, legal or tax advisor.  When you are ready to proceed, we would be pleased to work with you to develop a gift, which is meaningful to you and will bring a maximum benefit to the Animal Rescue League.

1. As a non-profit animal shelter with no national affiliations, the Animal Rescue League relies almost exclusively on fundraising and donations from our supporters to provide rescue, temporary housing, and care to lost and unwanted animals in our community.  We do our best to find loving, caring and responsible forever homes for all of the animals in our care.  We also attempt to educate our community about responsible pet ownership, the humane treatment of animals, and the importance of spaying and neutering pets.  Gifts of charitable remainder trusts and gifts of residual interest are thoughtful ways of supporting the Animal Rescue League well into the future.

MEMORIAL GIFTS

Donations to our shelter can be made as a Memorial.  Honour the life of a deceased family friend; recognize the birthday, anniversary or unique accomplishment of a loved one through a gift to the Animal Rescue League in their name.  A card will be sent to the owner or family of the person you are honouring in acknowledgement of your gift.  The amount will not be disclosed.  The recipient will only know you are thinking of him or her in this special way.  This is also a way to honour the memory of a beloved pet that has passed away.

“We make a living by what we get, but we make a life by what we give.”
-Winston Churchill

The Sound Financial Advisor Will:

1. Review the various aspects of the Donors financial and estate plans.
2. Help Donors clarify their financial planning goals.
3. Pinpoint problems and opportunities.
4. Recommend sound planned giving and financial planning strategies.
5. Help Donors carry out their charitable gift plans.
6. Monitor their plan over time, as required, to ensure that it continues to be the best one for them.

How do you find a good advisor if you don’t already have one?

Talk to people who use a financial advisor so that you can truly understand the importance of having one.  The selection of a financial advisor is a very personal decision, and a trusting, long-term relationship with an advisor is an excellent way to maximize your chances of making sound financial planning decisions.  You have choices when it comes to developing and implementing your financial strategies.  Not only on your advisor team, but also for the products and services you choose to help make your goals a reality.