A legacy gift is a commitment to a bright future for your community and the Textile Museum of Canada. Deferred gifts, arranged today and used sometime in the future, take several forms, each offering particular tax benefits to the donor and all of them making a tangible impact on the TMC.
Your deferred gift will make the most of your assets and leave a legacy sustaining your passion for arts and culture and your support of the work of the Textile Museum of Canada.
For more information, or to inform us that you have made a provision in your estate for the Museum, please contact the Development Office at (416) 599-5321, ext. 2246 or by email at firstname.lastname@example.org.
An overview of your legacy giving options is presented below.
A bequest is a gift made through your will. By remembering the Textile Museum of Canada in your estate plans, you can make a lasting contribution to a public organization that enlightens and engages thousands of people every year. A bequest can be stated as a specific amount or as a percentage of your estate. Your estate will receive a full tax-receipt for the amount of the bequest, which may help to reduce the taxes payable on your final return.
Stocks and Securities
A donation of publicly listed stocks or securities that have appreciated in value is a very beneficial gift for the TMC. New tax incentives make this kind of contribution attractive to the donor as well. You are able to claim a gift of stocks or securities up to 75% of your net income. A receipt will be issued for the full value of the donated property and as a result of recent changes in Canadian tax laws; you pay no tax on the realized capital gain.
"Without any capital gains taxation, many donors will actually make money from a gift relative to what they originally paid for the stock. In other words, the charitable donation credit could exceed the purchase price if the value of the shares has appreciated significantly," states Don Drummond, Senior Vice-President and Chief Economist, TD Bank Financial Group.
Tax Assistance for Charitable Donations(of cash compared to publically Traded Securities)
|Fair Market Value of Donation||$100||$100||$100|
|Top Marginal Tax Rate||46%||46%||46%|
|Value of Charitable Donations Credit (A)||$46||$46||$46|
|Typical Cost Base of Security||$40||$40|
|Capital Gain on Security||$60||$60|
|Capital Gain Tax if Sold (not donated)||$14||$14|
|Tax Saved Due to Incentive (B)||$7||$14|
|Total Tax Assistance (A+B)||$46||$53||$60|
|Cost of Donation to Donor||$54||$47||$40|
The donation of a life insurance policy offers an opportunity to leave a significant legacy to the Textile Museum of Canada for a relatively small annual payment.
You can transfer ownership of a new or existing policy to the TMC and receive a full tax receipt for the accumulated cash value. You may also directly designate the Museum as the beneficiary of the insurance proceeds (or an RRSP or RRIF), while you retain ownership of the policy. In this instance, your estate will realize the tax benefits.
Charitable Gift Annuities
Depending on your age, you can use a charitable gift annuity to your benefit by receiving tax-free payouts for life. The TMC will use a portion of your contribution to purchase the annuity and retain the balance for immediate use towards realizing our mission.
Charitable Remainder Trusts
You can create a trust to support the Textile Museum of Canada and receive interest for life, or a set term of years. The donor is entitled to a donation receipt at the time that the trust is established, the TMC will receive the remainder interest upon passing.
A trust can be funded with cash, securities or other investments and will provide tax relief to a donor today and create a legacy for tomorrow.