There are a variety of ways to leave legacy and planned gifts to Habitat for Humanity PEI. This page outlines some of the numerous options when considering legacy gifts. Habitat for Humanity PEI encourages you to consult with your legal and financial advisors regarding current income tax provisions and all issues relevant to your personal circumstances.
deserves a home base from which to explore the world
It is a simple process to add Habitat for Humanity PEI as one of the beneficiaries to your RRSPs, RRIFs or TFSAs. Since such gifts are 'deferred' - or paid after you die - designating Habitat PEI in your RRSP, RRIF or TFSA will not jeopardize your own future financial stability. And, your estate will benefit from the tax credits.
Retirement funds that you no longer need can have a tremendous impact when donated to Habitat PEI. Your estate will receive a receipt to offset taxes due from the distribution of the RRSP, RRIF or TFSA, which are among the most heavily taxed assets you own.
These plans do not form part of the estate assets that require probate, as long as there is a named beneficiary. As such, naming Habitat PEI as the beneficiary of your registered plan may result in significant savings where the fee is charged on the value of the estate. A beneficiary designation can be made directly on the RRSP, RRIF, or TFSA application form and can only be changed by the annuitant.
Life insurance is often something we don't wish to think about, yet it can be a creative way to provide for your loved ones and heirs whilst still making a donation to a charitable cause that is important to you.
Your Last Will & Testament is the cornerstone of estate planning, yet less than 50% of Canadians have a legal Will in place. If you die intestate (or without a legal Will) then the government will determine how your estate will be disbursed. When that happens, the government does not select charitable organizations as beneficiaries. If you wish to ensure that a charitable organization - like Habitat PEI - receives a portion of your estate then it is important that you have a legal Will in place.
Besides Wills, life insurance and securities, you may also choose to donate a retirement fund. Or you may wish to use assets to complete an outright gift of cash, or to establish an endowment in our name or that of a loved one.
A Major Gift
When you make an 'outright' gift of cash or property to Habitat PEI, 100% of your donation is used to build homes for families right here in Prince Edward Island. Your 'outright' gift gives you the satisfaction of seeing the results of your donation and knowing that the lives of local families are being transformed with your help.
The Canada Revenue Agency's (CRA) charitable donation tax credit means that your gift is worth more to Habitat PEI than its actual net cost to you. Each year, a percentage of the value of your accumulated donation receipts - 15% of the first $200, then 29% thereafter - can be subtracted from the federal income tax that you owe. Your provincial taxes will also be reduced. Depending upon current tax law, the combined savings could be as much as 53.53% of your contribution. You can claim eligible amounts of gifts to a limit of 75% of your net income.
To review your potential charitable tax credits for a gift, you can use the Charitable Donation Tax Credit Calculator found on the Canada Revenue Agency's (CRA) website.
Endowments increase in value over time, creating an enduring and vibrant legacy. You can establish your personal endowment fund with a one-time donation, a pledge over time, or through a bequest in your Will. Your fund can be in your name, your family's name, or you can honour a loved one.
Your named endowment fund can be established to support a specific Habitat build or you may allow us to use the funds where they are most needed. Endowment funds will be invested by Habitat for Humanity PEI and, unless otherwise specified, the investment income will be used to support the programs that we offer that are most important to you, for generations to come.
A minimum of $25,000 is required to set up a named endowment fund. However, it is possible to establish the fund with a gift of $5,000 and pay the balance over the following four-year period.
This page is designed for informational purposes only and does not constitute financial or legal advice. Habitat for Humanity PEI strongly encourages you to consult with your legal and financial advisors regarding current income tax provisions and all issues relevant to your personal circumstances and jurisdiction.
Finding land upon which to build is one of Habitat PEI's biggest challenges. A gift of real estate enables you to make a bigger charitable difference than you may have thought possible. It also helps you to avoid estate taxes and minimizes or eliminates any burden placed on your heirs.
Gifts of real estate range from personal residences and vacation homes, to rental properties, farmland and commercially developed land. You may choose to donate real estate outright and receive an immediate tax credit, or to retain the property for use during your lifetime and make it a 'planned gift' in the form of a Gift of Residual Interest.
We encourage you to speak to your lawyer or financial planner to determine how your real estate holdings can best be utilized to meet both your charitable goals and financial needs.
This is a tax-efficient way to donate. If you sell a stock or bond privately, you are currently taxed on 50% of the capital gains. However, if you gift that security directly to Habitat PEI, all taxable capital gains are eliminated and you will receive a tax receipt for the full market value of the security on the day that it is received by Habitat.
Gift annuities are a way that Canadians who are 60 years of age and older can make a gift to help fund Habitat PEI's mission work while still receiving a guaranteed annual income for life, the majority (or all of which) is tax-free. These are truly gifts that give back and they are a simple way for those who depend on a consistent income stream while they are living to leave a substantial legacy after they die.
Many people wish to leave a gift to Habitat PEI, but also want to ensure that the needs of a dependent child or spouse are provided. You can establish a living trust by contributing cash or other property. When you do, the benefit is an immediate tax deduction during your lifetime, rather than to your estate after your death. You or your family member receive income for life from the trust, and the "remainder" would pass directly to Habitat PEI after your death.
For more information please contact Sophia Ball, Director of Resource Development, at email@example.com / 902-367-3559