Charitable Bequests: 4 Ways to leave a lasting impact
What is a Charitable Bequest?
A Charitable Bequest is a designated gift given to Thyroid Foundation of Canada that is specified in your Will and occurs after your lifetime. It allows you to make a significant impact to Thyroid Foundation of Canada and leave a lasting legacy without impacting your savings today. It is a gift you and your family can be proud of that will benefit your loved ones and thyroid patients across Canada.
How Bequests Work
To make a bequest, you need to set it out in writing, typically in a Will. If you have no Will to specify your instructions, provincial law dictates where your property passes. You can detail different types of bequests in your Will and update it throughout your life as your needs change.
A Will bequest can be a simple sentence naming Thyroid Foundation of Canada (TFC) in your Will or adding a codicil (amendment) to your existing Will. You can assign a dollar amount, a specific asset or a fixed percentage of your estate to the Thyroid Foundation of Canada. The designated amount will be donated to Thyroid Foundation of Canada’s most urgent needs or you can create a restricted bequest that is directed to a specific purpose/program. As well, you can have a conditional/contingent bequest that requires certain conditions to be met before bequeathing the gift. For example, you may wish to leave all or part of your estate to the Thyroid Foundation of Canada only if other beneficiaries in your Will pass away before you.
Types of Bequests
There are four (4) types of bequests, with many Wills including more than one:
There are four (4) types of bequests, with many Wills including more than one:
1. General bequests: gifts taken from an estate’s general assets. “I direct my Trustees to pay or transfer the sum of (state the dollar amount) to the Thyroid Foundation of Canada (the “Foundation”) to be used for the Foundation’s general purposes [or, to be applied by the Foundation as its directors see fit].”
2. Demonstrative bequests: gifts that come from a specified source (such as a bank accounts or sale of stocks or bonds).
3. Specific bequests: gifts of possessions like jewellery, cars, cash, and paintings. For example, “I give to the Thyroid Foundation of Canada (describe the property/asset).”
4. Residuary gifts: gifts made after all debts and expenses are paid, and other bequests are made. These are typically a percentage of the remaining assets. “I give to the Thyroid Foundation of Canada all (or stated percentage) of the rest, residue and remainder of my estate.” Conditional/contingent bequest: “If (indicate beneficiary name) does not survive me, then I give all the rest, residue, and remainder of my estate to the Thyroid Foundation of Canada.”
Charitable bequests can fall into any of these four categories. One common approach is to leave general, specific or demonstrative bequests to family members or other individuals and then leave a residuary charitable bequest to a charitable organization such as the Thyroid Foundation of Canada. Aside from a Will, you can also designate the proceeds from an insurance policy or annuity, where the policy holder receives benefits during their lifetime and then gives the remainder of the policy benefits to family, friends and/or charitable recipients.
Benefits of Charitable Bequests
Reduced taxes – The Thyroid Foundation of Canada will issue an official receipt for the full value of the Will Bequest. This receipt can then be used to reduce the tax payable on your final income tax return. Your estate will receive important tax benefits, ultimately providing the most value possible for your other beneficiaries and heirs.
Flexible and revocable – A charitable gift can be made for any amount and is revocable at any time should your financial situation change. Estate planning professionals often counsel clients to have an annual or bi-annual estate plan check-in to ensure their Will and beneficiary designations reflect their current wishes and situation.
Leave a lasting legacy – Thyroid disorders affect 1 in 10 Canadians. Your charitable gift will make a real difference to the millions affected, leaving a lasting legacy for you and those closest to you. It provides you with an opportunity to make a large contribution to members of your community in a way that might otherwise be impossible during your lifetime.
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- Raise public awareness of thyroid disease
- Lend moral support to thyroid patients and their families
- Assist in fund raising for thyroid disease research
Next Steps to Set Up a Charitable Bequest
The process of setting up a charitable bequest begins with you and your estate-planning lawyer drawing up a comprehensive Will. The rest of your wealth planning team may also be involved: your financial planner, your accountant and your tax advisor.
Please let us know of your intention to include the Thyroid Foundation of Canada in your Will. There are a few reasons for this:
- Ensure your bequest is executed in the way you intend
- Allows us to thank you for your support, and provide you with our proper legal name, charitable registration number and proper wording for your Will
- Allows us to accept your gift or use it as you intended. For example, perhaps you have a historic home you would like to leave to the Thyroid Foundation of Canada. Things to consider are accounting for the maintenance and management of the property, as well as zoning for use by the Charity.
The Thyroid Foundation of Canada has been fortunate to receive several bequests recently for thyroid research. Important though research is, we are also in great need of funding to continue and expand our awareness and support programs. You can make a lasting difference and help other thyroid patients!
We appreciate bequests of any size and welcome gifts that help us fulfill our very important mandates:
AWARENESS/ADVOCACY
- Public education programs
- Advocacy for improved thyroid care
- Annual June is Thyroid Month activities
PATIENT SUPPORT
- Toll free telephone Help line and email access for thyroid patients
- Thyroid educational material
- Thyrobulletin newsletter
- ca site with the latest news
THYROID RESEARCH
- Annual Research Awards program provides funding for projects carried out on thyroid disease in Canadian Research Laboratories
For more information please contact us, toll-free 1-800-267-8822 or info@thyroid.ca.
Legal Name: Thyroid Foundation of Canada, CRA Business #: 119264422RC0001
This material provides general information and is not intended to constitute or replace specific professional advice. Donors considering a legacy gift should speak to an advisor with appropriate tax and estate planning expertise to implement a strategy that achieves their objectives.
