Planned giving provides families with the opportunity to take care of the future in a manner that benefits them, their loved ones and the environment we live in. If properly set up, a planned gift can minimize your tax obligations and maximize your estate planning benefits.

What is planning giving? 

A planned gift is simply any donation that takes into account your long-term plans. It's a strategic approach to donating that benefits you and the organization you'd like to support.

Planned giving is very flexible, allowing you to contribute to a charity in a manner that best suits your own particular financial situation. A planned gift may be a one-time donation, a series of donations over a set period, or on-going financial support. It may be a "present" gift that can be used immediately, or a "declared gift" which will be made available in the future, perhaps after your death.

Gifts of this sort come from assets rather than income and have clear tax advantages. They're something you arrange now to provide funds for charities down the road. Planned gifts can take many forms, giving you a range of options to choose from. They can include bequests, life insurance, trusts, endowments and foundations.

What are the benefits of planned giving?

So who benefits from planned giving? Usually when people donate to a charity, their emotions have been touched and they want to help with whatever is easiest, usually cash or a cheque. At that moment, someone else's needs are uppermost in their mind. Planned gifts, however, are designed to take everyone's needs into consideration: you, the donor; your beneficiaries; and the charitable organization.