The Power of Giving

Oct 26, 2021

This is the time of year when many charitable organizations ramp up their fundraising efforts to remind us of the importance of helping people, communities and wildlife.

Charitable giving helps others and can be personally rewarding; it can also be a powerful lesson for our children. For my daughters’ birthday parties, I leverage Echoage, a great online platform that allows guests to contribute to a group gift and a not-for-profit charity of my daughters’ choice. Choosing charities like Sick Kids and Because I Am a Girl helps my girls appreciate how fortunate they are and that it is important to share their good fortune.

As you consider your own gift-giving this season, you might want to explore creating a Charitable Remainder Trust (CRT). This is a great way for people who are passionate about supporting causes, cures, and community initiatives to benefit from the income generated by their assets while communicating their future charitable intent. A CRT can also protect your assets from possible challenges to your Will.

An innovative way to leave a legacy

A Charitable Remainder Trust (CRT) involves transferring property or assets into a trust whereby the settlor retains a life interest in the income generated by the property or assets (capital) but makes an irrevocable gift of the capital/residue to a registered charity. There cannot be any capital encroachment provisions in the trust agreement. The charity’s interest in the property is irrevocable.

Benefits of a Charitable Remainder Trust

Upon the creation of the Charitable Remainder Trust, the settlor receives a tax receipt for a donation tax credit (based on an actuarial calculation of the net present value) in respect of the charitable contribution. Clients have the ability to obtain a tax deduction now but are not giving the funds to the charity until they pass away.

Clients can carry forward the tax deduction to future tax years.

Anyone, including a spouse or child, can be the income beneficiary. It doesn’t have to be the settlor—or it can be both individuals. In this way, it is similar to an annuity product that provides a continuous income stream.

There are so many important and compelling charitable causes that would benefit from even a modest donation, which can go a long way to leaving a proud legacy for you and your family. I encourage you to support whichever organization speaks to your heart.

Please reach out if you would like more information about a CRT and are interested in leaving a powerful, meaningful legacy.


Article by Martha Moen for Concentra

Recent Posts

Aviso Weekly Market Monitor: September 18th – September 22nd

Market developments Equities: The S&P 500 Index faces its worst week in six months as global investors grapple with the possibility of sustained high interest rates to combat inflation. The index slipped -2.9% for the week despite technology stocks partially...

Aviso Weekly Market Monitor: September 11th – September 15th

Market developments Equities: The U.S. stock market saw increased volatility and a decline in response to a $4 trillion options event, alongside concerns about a strike impacting Detroit automakers. Big tech companies like Nvidia led the losses, with the S&P 500...

NEI Monthly Market Insights: August 2023

Markets cool off in August The end of July marked the peak for the S&P 500 so far this year, as the steady market uptrend that began in mid March started to retreat as soon as the August began. Following a 20% S&P 500 Index return in the first seven months of...

Aviso Weekly Market Monitor: September 4th – September 8th

Market developments Equities: This week concerns surrounding economic slowdowns in China and the euro area, alongside rising oil prices caused equities to slide. Notably, technology stocks, such as Apple and Nvidia, played significant roles in market movements,...

How to choose a mutual fund

Mutual funds continue to be extremely popular with investors of all types. According to the Investment Funds Institute of Canada (IFIC), as of the end of 2022, Canadians owned a total of $1,809 billion in mutual fund assets. In recent years, exchange-traded funds...

Aviso Weekly Market Monitor: August 28th – September 1st

Market developments Equities: U.S. stocks saw a significant weekly rise as monthly jobs data suggested the Federal Reserve might halt its tightening measures. The S&P 500, Nasdaq, and TSX all increased by over 2.5% ahead of the long weekend. Despite improved...