Types of Gifts
- Cash Contribution
- Gifts by Will
- Gifts in Kind
- Real Estate
- Publicly Traded Securities
- Personal Property
- Gifts by Annuity
- Gifts of Life Insurance
- Charitable Trusts
- Charitable Remainder Trusts
- Charitable Residual Trusts
Perhaps the most common method of giving is a gift of cash that is paid by cheque, money order, or credit card. These gifts are considered to be made on the date that they were mailed or delivered by hand. This is an important consideration, particularly if you want to claim your contribution before year-end. When contributions are made with a credit card, the donation date is the date on which the transaction is approved.
Gifts by Will
For many donors, a provision in their will is the most realistic way of making a significant gift to the University. A bequest in your will allows you to make a substantial contribution without diminishing assets during your lifetime.
Since the Brandon University Foundation is a registered charity, your estate is entitled to a donation receipt for the full value of your bequest. This can result in a considerable tax credit on your final tax return. The most common types of bequests include a general bequest, specific bequest, residual bequest, contingent bequest, or a trust remainder bequest.
Gifts in Kind
A gift in kind is a non-cash gift of capital property, which includes publicly traded securities, real estate, works of art, special collections, rare books, cultural property, musical instruments and other tangible property.
A charitable receipt will be issued based on the fair market value of the asset on the date the gift is transferred. In the case of publicly traded securities, this information is easy to determine. The value of other assets, however, such as real estate or artwork, can be less definitive. Before accepting these gifts the University must obtain (in accordance with federal guidelines) an independent appraisal, which is secured by the donor. In some instances, two appraisals may be required.
For tax purposes, the donation of a gift in kind is deemed to be a disposition. Therefore, it is recommended that the donor consult with a financial advisor regarding the best method of transfer to maximize tax benefits.
Although not always an obvious choice, land (including farmland), residential properties or private and commercial buildings make excellent gifts. Real estate can either be used for specific applications by the University or sold using the proceeds as designated by the donor.
Publicly Traded Securities
Investments in personally held securities are easily transferred. Securities such as publicly traded stocks, bonds and units of mutual funds may be used to provide a gift. Where applicable, there may be an income tax benefit pertaining to capital gains on the appreciated value of the securities.
Over the years, Brandon University has gratefully accepted donations of cultural and educational value that are of special interest to our faculty and academic programs. Equipment, rare books, art, archival materials and musical instruments related to the purposes and activities of the University are sincerely appreciated.
Gifts by Annuity
An annuity may be the ideal charitable vehicle for individuals who have always wanted to make a major gift, but do not have the means to do so now. Over the years, many people accumulate capital to provide a steady revenue stream in retirement (RRSPs, RRIFs etc.).
A gift by annuity designates Brandon University as beneficiary of the annuity’s balance. Although ownership of the capital is transferred to the University, the donor (or co-annuitant) is guaranteed a fixed income for life. Depending on age, a major portion of the income may be tax free. When the funds are realized, they are directed to the area stipulated by the donor. Your financial advisor can provide you with information before proceeding.
Gifts of Life Insurance
As circumstances change, many people find that the life insurance policy established to protect their family or business is no longer needed. A gift of life insurance can be a simple, yet creative way to leave your legacy. A gift of this nature allows you leave a significant gift for a relatively modest cost and provides tax relief without reducing assets intended for your family or loved ones.
At any time, you may choose to take out a new insurance policy from the company of your choice. By transferring ownership and naming Brandon University a beneficiary, your monthly or annual premiums are tax deductible. When the policy is realized, the value of your gift is much larger than the amount paid in support of premiums.
When Brandon University is named as irrevocable owner and beneficiary of an existing policy, you will receive a tax receipt for the cash surrender value of the policy, plus any accumulated dividends and interest.
Making a donation through a charitable trust can be an appealing gift option to many people who would like to make a gift sometime in the future, but save on taxes now. As this kind of gift is irrevocable, it is recommended that you consult your financial advisor to assist you in maximizing your tax benefits.
Charitable Remainder Trusts
A Charitable Remainder Trust is a voluntary transfer of property made by a donor or their designate. It is a legal agreement whereby the donor creates a trust, either through a trust company or a named individual. The trustee holds and manages the assets, which can be in the form of cash, securities, or real estate. The donor (or other named beneficiaries) retains the interest income for the rest of their lives. When the trust terminates, the remaining principal is released to the University for the funding purpose specified by the donor without the need of probate.
Donors receive a donation receipt for a portion of the asset which is calculated on the basis of actuarial statistics of life expectancy, interest rates and the value of the property at the time the gift is transferred to the trust.
Charitable Residual Trusts
A Charitable Residual Trust is a gifting arrangement similar to a Charitable Remainder Trust. In this case, however, tangible assets such as artwork, or a personal residence is donated to the University through a signed agreement. The University then owns the property but the donor retains the right to continue to enjoy the possession during their lifetime.