The following pages will offer ideas as to how you can be a part, truly a partner, in the shaping and developing of our future through your gifts and support of the New Brunswick Lung Association. Your rewards will be more than the tax savings. There are many personal, emotional, and spiritual rewards of helping others that can't be duplicated in any other way.
Please let us know if you have provided for The Lung Association in your estate plans or partnered with The Lung Association to establish life-income or annuity gifts. Your personal circumstances will determine the best structure for you and your family and we will be glad to answer questions and offer suggestions confidentially.
The information on this web site is intended to provide accurate information regarding planned giving at The Lung Association, but is not intended as legal, accounting, tax, investment, or other professional advice. If such advice is required, the services of a competent professional should be sought.
Wills and Bequests
A bequest to the New Brunswick Lung Association in your will is one of the most popular ways of leaving a legacy for the future.
The importance of having an up-to-date will cannot be overestimated. Through your will, you can make provisions for:
- the financial security of your family
- the naming of guardians for young children
- property distribution
- funeral instructions
- financial gifts to causes that you support to ensure that your beliefs live on and the work you supported in your lifetime will continue.
Unfortunately, a high percentage of Canadians die without a will (intestate). The probate process for an estate without a will can be costly and time-consuming, and will not take into account your personal wishes and priorities.
By constructing your will carefully, you can avoid excessive taxes. For example, a charitable bequest can reduce the final tax burden of your estate by as much as 100% of your income in the year of demise and the previous year.
We recommend that you seek the professional advice of your family lawyer and a financial advisor when drawing up your will. Your lawyer can draft or amend your will to include a bequest to the New Brunswick Lung Association if you choose. Your financial planner can advise you on how to obtain optimal tax benefits for various forms of charitable gifts.
Perhaps you have already made a provision in your will to leave a lasting legacy to the New Brunswick Lung Association. If so, we would very much appreciate hearing from you, so that we may properly thank you. We assure you that any details you provide will be kept completely confidential.
For many people, naming the New Brunswick Lung Association as a beneficiary of a life insurance policy provides an optimum combination of immediate and long-term tax benefits, affordability, and the satisfaction of leaving a significant sum of money to perpetuate the work we all believe in.
Stocks and Securities
The Canadian income tax system encourages the residents of our great nation to make gifts to charitable organizations through the granting of tax credits. Thanks to the recent tax changes made by the Federal Government, it's become a more cost effective gift than ever before to donate gifts of securities and stock to The Lung Association. Donating stock securities to The New Brunswick Lung Association benefits you and your family today, while serving your community for a lifetime.
On May 2, 2006 the Federal Budget exempted charitable donations of publicly listed securities from capital gains tax. This means that if you transferred gifts of marketable securities such as stocks, bonds, or mutual funds directly to The New Brunswick Lung Association, you would not pay tax on the capital gains. Compared to the usual tax on 50 per cent of the capital gains when a security is sold or transferred, the savings are very clear and the benefits to our charity are exciting!
Suppose you have securities that you previously purchased for $5,000 that now have a fair market value of $10,000. If you sell the securities, the cash value after capital gains tax and selling commission would be $8,700. If, instead, you transfer $10,000 in securities directly to The New Brunswick Lung Association, the gift would generate a tax credit of $4,400 to reduce tax on other earnings. Neither you nor The Lung Association would have to pay tax on the capital gains. Compared to selling the securities and receiving $8,700, the net cost to you of donating the securities is $8,700 less the $4,400 tax credit which equals $4300 to make a gift of $10,000 to The Lung Association.
All securities donated to The Lung Association are sold upon receipt, with the net proceeds directed to the area of greatest need or to the fund you designate. The amount of your charitable gift receipt is determined by the closing price on the day The Lung Association receives the securities into our account. The Lung Association may only consider a gift of securities of $2,000 or more.
Whatever form of planned giving is most appropriate to your own circumstances, each gift assists the New Brunswick Lung Association's long-range financial planning. Your planned gift will guarantee that we will always have the resources to speak out for the silenced and the defenceless.
This and other gifting strategies require appropriate planning. We strongly encourage our donors, prospects and supporters to seek the advice of qualified professionals prior to making any planned gift to ensure the best possible outcome for you and our Association.