Vancouver Foundation

Ask an Advisor Insure Your Impact Gifting insurance can increase the impact of your charitable dollars By ross Young | Partner, secure caPital ManageMent ltd. F a l l 2 0 1 5 I V a n c o u v e r F o u n d a t i o n l p a g e 2 7 An easy but relatively unknown way to support your favourite charity and make a difference in your community is to use life insurance to maximize the impact of your charitable contribu- tions. e following examples are for illustrative purposes only, but demonstrate that life insurance can leave a legacy that is far greater than you could have imagined. Susan had some trouble in her youth and had to turn to a local shelter for support. Now, at age 35, Susan has gained stabil- ity in her life and feels that it's important to repay the favour she received. She established a fund at Vancouver Foundation in support of the youth shelter that helped her, and made Vancouver Foundation the beneficiary of a $100,000 life insurance policy that she holds. e policy costs her $129 per month, and she only has to make the payments for 10 years. She takes pride in knowing that the $100,000 donation to her fund on her death will make a huge difference for many kids who need help. Bill and Shannon, both 55, have lived in Vancouver all of their lives. ey own a successful real estate development com- pany and plan to retire in five years. Now that their children are grown and have launched careers of their own, Bill and Shannon would like to give back to the community that has been a large part of their success. In a conversation with their financial plan- ner, they learned that a gift of life insurance can be a great way to increase the effectiveness of their charitable intentions. ey established a joint $1-million life insurance policy where they could guarantee, with provisions contained in the contract, that the policy would be paid up in five years with no additional premiums being necessary. In making Vancouver Foundation the owner and beneficiary of the policy, Bill and Shannon are eligible to receive a charitable tax receipt for their ongoing policy premium payments. During the first five years of the policy, while their incomes are high, they'll make accelerated premium payments of $50,000 annually. With the benefit of a charitable tax receipt, their net annual cost for the premiums will be approximately $28,000. ey are very pleased that, in just five years, their approximate $140,000 net cost will have provided for a $1-million gift to charity on their deaths. ese are just two examples of ways that insurance can increase the impact of your charitable gift. If you are thinking of making a gift of insurance, it is important to ensure that the premiums and gift amount are guaranteed. Talking with an advisor who is a member of the Canadian Association of Gift Planners is advisable, as he or she will be familiar with what both you as a donor and the charity you wish to support require. e information in this article is for general information purposes only, and is not intended to provide financial, legal or tax advice. You should consult with your financial advisor before acting on any information presented in this article. LAStING LeGACIeS We are honoured to acknowledge donors who include Vancouver Foundation as a beneficiary of their estate, RRIF, RRSP or life insurance policy. In 2014, these individuals left a lasting legacy for the community through Vancouver Foundation. WIth GreAt APPreCIAtIoN, We rememBer: Cloe Beauchesne Dorothy Burgess Eleanor Campbell Paul and Edwina Heller Margaret Patricia Jeffers Arthur Kelm William McGhee Agnes Mackay Publicover . . . and one donor who wished to remain anonymous

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