"PLANNED GIVING" - PROVIDING CHARITY TO OTHERS IN PERPETUITY
Ron Campbell, President,
The Masonic Foundation of Ontario

"Over and over again, the courts have said there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everyone does so, rich and poor, and all do right, for nobody owes any duty to pay more tax than the law demands. Taxes are enforced exactions, not voluntary contributions."

Billings Learned Hand (1872-1961)

US Jurist

Judge, US 2nd Circuit Court of Appeals,
1924-51

There are ways that we, as Canadian citizens and as taxpayers, can legitimately reduce an unnecessary tax burden through "Planned Giving", and as Masons, we can combine planned giving with our commitment to give to Charity that each of us pledged to do when within our power, by including the Masonic Foundation of Ontario in our long-range financial planning.

What is Planned, or Deferred, Giving? It is simply the process of making a gift commitment today for delivery to a charity tomorrow. Gifts can include: a specific dollar or percentage of the estate; assets, such as stocks, bonds, mutual funds or term deposits; or existing or specially purchased life insurance policies - consult your lawyer or financial advisor. Regardless of how you wish to dispose of your estate, however, prepare a will –without a will, you lose control over your property at death.

Some forms of planned giving are more tax efficient than others. A commitment to support the Masonic Foundation can be combined with clever fiscal planning. In recent years, the federal government has created more generous tax incentives for individuals who make charitable contributions. One area of benefit is the gifting of publicly listed securities. Instead of selling the security and donating the cash proceeds, individuals can gift eligible securities. Despite the fact that donating certain securities to a registered charity may result in tax on the capital gains, the advantage lies in the tax rate on that gain. Normally when a security is sold, individuals are taxed on 50% of the gain. However, when securities are donated and deemed sold, individuals are only taxed at half of the capital gains rate, or 25%.

Planned giving through the donation of a life insurance policy is a very simple, yet very rewarding thing to do. One can either donate an existing policy by signing over the

ownership and beneficiary designation to the Foundation, or purchase a new policy specifically for this purpose. Which is better? That depends on the individual’s personal statistics. As they reach middle age and beyond, many people find that they have an existing life insurance policy that is no longer required for its original purpose of securing the future. When the inevitable finally occurs, having signed the policy over, the proceeds of the policy will be paid quickly and directly to the Foundation, without the necessity of probate, or legal fees.

Your estate will receive a charitable tax receipt for the full value of the gift. For younger members, the new policy could be more attractive. A tax receipt is issued for each premium payment, which means immediate tax savings. Because the type and face value of the policy can be tailored to the individual’s budget and intensions, often donors will be able to make a larger gift through their estate than they would have been able to in life.

As you were likely often warned as a child: "look before you leap!" As a potential donor to any good cause, you have the right to know the following about the organization you are considering to support: (1) its mission, how it intends to use donated resources and its capacity to use donations effectively for their intended purposes; (2) who are serving on its governing board and their ability to exercise prudent judgment in its stewardship responsibilities; (3) access to its most recent financial statements; (4) assurance that gifts will be used for the purposes for which they were given; (5) that appropriate acknowledgement and recognition will be received; (6) information about your donation will be handled with respect and confidentiality; and (7) questions asked will receive prompt, truthful and forthright answers. Most of this information with respect to your Masonic Foundation is readily obtainable from the Annual Report, copies of which are available in your District, or directly from the Masonic Foundation Office, 361 King Street West, Hamilton, L8P 1B4. Your questions and comments on the Foundation are also welcome. Please read the new Foundation pamphlet "A Planned Giving Program", explaining the advantages to everyone of including the Masonic Foundation in the planning of their estates.

Your legacy today is the Foundation’s future –for the cause of good!