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Planned giving - a way to Leave a Legacy

Legacy Giving

Alumni sitting at table with students, including Jesse Yantzi

I’m grateful to have received the Robin Jutzi Coupland scholarship.  It was important for me to be a part of the Grebel community during my years at Waterloo and this award helped me pay the fees of residence. It is a great opportunity to connect with those in the community who support Grebel students and I am very thankful for the donor support.

- Jesse Yantzi (right)

Anita and Bob Tiessen

Conrad Grebel has gone through many phases in over fifty years. The current programs with a variety of residential options plus teaching at both the bachelors and masters level in various disciplines reflects well on the work of the founders and those who have continued their work. We have decided to include Grebel among the beneficiaries in our will as an adjunct

 to our annual operating and capital gifts. In this way we are able to continue our support for the college after we are gone. 

- Anita (BA ‘81) and Bob (BMATH ‘74) Tiessen


  1. What is a planned gift?
  2. What does a planned gift do?
  3. Why consider a planned gift?
  4. What are the types of planned gifts?
  5. Current gifts
  6. Deferred gifts
  7. Naming opportunities
  8. Establishing a scholarship awards
  9. Contact us

Endowments at Grebel to consider supporting:

convocation

The college has established a series of endowment funds to help finance parts of the Conrad Grebel program that are unique to Mennonites and which do not receive adequate or any government funding. The monies designated for the endowments are invested and the earnings from the fund are used to support the purposes of the endowment.

1. What is a planned "Legacy" gift?

A planned gift is a special, carefully planned donation. It is a tax-effective donation that balances your financial needs, family commitments, and charitable goals.

A planned gift can be a current donation. But many planned gifts - such as bequests and life insurance - are deferred to a time in the future.

A planned gift is usually made from assets, not current income. It is probably the largest charitable donation you will make. It enables you to leave a permanent legacy.

2. What does a planned gift do?

Planned gifts help the college. They provide a long-term financial foundation for the college, especially for the unique programs and activities that require designated and ongoing support. Planned gifts help you. They permit you to choose the legacy gift you want to make and support the program that is important to you.

They enable you to honour a loved one. They allow you to extend support for your interests beyond your lifetime.

Planned gifts also help you save on taxes. The government of Canada recognizes that charities play a vital role in Canadian society and has established tax rules which encourage Canadians to give generously. The more you give, the larger your tax credit and the less income tax you or your estate will pay.

3. Why consider a planned gift?

  1. Group of handsSupport for the mission of the college in educating young people in a Christian context at a major and highly ranked Canadian university.
  2. Loyalty to the college and a desire to support its students and programs over the long term.
  3. Long-standing involvement with the college.
  4. In memory of a loved one or as a personal legacy.
  5. Encouragement to family and friends to support the college.
  6. Significant tax savings. Different rules apply for a taxpayer's final tax return, filed after death. Bequests to charities can be used to cover 100% of income for the year of death. If the donor had unused charitable donation room in the previous year, any unused charitable tax receipts can be carried back one year and a refund claimed on those taxes already paid.

4. What are the types of planned gifts?

There are two types of planned gifts that can be endowed to create ongoing support for the college.

  1. Current gifts: the college can use now.
  2. Deferred gifts: funds that come to the college some point in the future.

5. Current gifts

These are gifts that the college can use now. In addition to regular donations which supporters of Grebel make each year, present gifts include:

Gifts-in-kind such as real estate or certified cultural property: the fair market value of each gift is assessed by a qualified party and the donor receives a tax receipted based on the valuation of the gift-in-kind.

Securities: there are excellent tax advantages that make donating stock more beneficial than donating cash. Because charities, like Conrad Grebel University College, are tax exempt, we are not taxed on the capital gain of securities. If the securities were sold by the donor, 50% of the gain would be taxable.

Example
Tim B. Good bought $2,000 shares in the "XYZ Corporation" 10 years ago. Those shares have gained $8,000 in value and are now worth $10,000.

If Tim B. Good makes a stock donation:

Capital gain - $8,000
Taxable gain - $0
Tax on gain - $0
Donation receipt - $10,000
Tax credit (assuming 46.4% rate) - $4,640

If Tim B. Good sells the stock:

Capital gain - $8,000
Taxable gain (50%) - $4,000
Tax on gain (46.4% OFX $4,000) - $1,845
​Net after-tax proceeds - $8,144

If he donates these proceeds his donation, and tax receipt, is smaller.

The net cost of donating stock compared to selling it is $3,504:

$8,144 - $4,604 = $3,504

 

De-mutualized shares: several local insurance companies (Sun Life, Manulife, and Clarica) have recently "de-mutualized," so that certain people who held a participating whole life insurance policy with these companies became share holders in the company. These shares, which are owned by the share-holder at no cost, can be donated like regular securities, through the system outlined above.

Stock options: employees of publicly traded companies can exercise their option to buy stock in the company at a set rate (usually at a small fraction of the current value). The employee can buy the shares at the lower rate and then donate these shares to the college. This process would need to be initiated within 30 days of exercising the options and the tax advantages for donating shares as noted above would apply.

Life insurance "cash value": you may donate an existing policy which you no longer need because your personal and financial circumstances have changed (such as your dependant's income is secure). Usually it will be a "whole life" policy that has a cash surrender value. You name Conrad Grebel University College as the beneficiary and owner. Unlike a bequest, that designation is irrevocable and cannot be changed. This is deemed as a current gift because the cash value along with accumulated dividends and interest as of the date of the assignment will be treated as the value of the gift; you receive a tax receipt for this amount. If premiums are still owing and you pay them, you are eligible for a charitable donation receipt for each premium paid.

Interest-free loans: You advance monies to the college on an interest-free basis with the understanding that these funds will be repaid you in full at some later date. The College is able to use the monies without paying the interest on conventional loans. The college provides you with a promissory note setting out the terms of repayment. The advantage to you is that you do not earn interest on this money, and thus your net taxes are reduced. Such loans are often made by individuals who already are making charitable donations equal to or greater than 75% of their income.

6. Deferred gifts

These are gifts that are committed now but are not available until sometime in the future.

Bequests in your will: a will is one of the most important documents you can make. It permits you to leave your assets to family and favourite charities - including Conrad Grebel University College - upon your death. The gift may take the form of a percentage of the residue of your estate, a gift of a designated part of your estate, a gift of a fixed sum of money.

Sample bequest clauses:

Sample 1: "I give to Conrad Grebel University College, Waterloo, Ontario, Canada, fifty percent (50%) of the residue of my estate for the J. Winfield Fretz Chair in Mennonite Studies."

Sample 2: "I give to Conrad Grebel University College, Waterloo, Ontario, Canada, all of my shares in ___ company for the Peace and Conflict Studies endowment."

Sample 3: "I give to Conrad Grebel University College, Waterloo, Ontario, Canada, $25,000 to establish an endowment fund, the annual income from which is to be used to provide scholarships to students at the college. The scholarship shall be known as ___ (named after the person making the gift or some other person)."

Katherine Schmidt, following a review of her estate plan, decided that she did not want half of her remaining Registered Retirement Income Fund (RRIF) to be paid out as taxes. Instead, she chose to leave this $400,000 asset to a charity through a specific bequest in her will. The charity received the entire amount, and the taxes that Katherine's estate would have owed were offset by the $400,000 charitable tax receipt.

Life insurance (proceeds upon death): you can donate a new policy to the college without affecting other assets intended for family members. By making the college the owner and beneficiary of a new policy, the proceeds pass outside of your estate. Life insurance is not taxable when paid out as a death benefit. Payment to the charity is prompt and no probate fees are applicable.

You receive an annual tax deduction for all the payment of the premiums. For example, with a donation of a $50,000 life insurance policy with a premium of $500 a year, you can claim the full $500 each year as a charitable donation.

Art and Elsie Schroeder, 65 and 63 respectively, wish to support a charity, but plan to leave their cottage to their children. They are concerned about the estimated $200,000 of taxable capital gains on the cottage that their estate will face. They decided to purchase a $200,000 joint-last-to-die insurance policy and to donate the proceeds of the policy to Conrad Grebel University College through their will. In exchange for annual premiums of $2,900 to a life insurance company, their estate will receive a $200,000 charitable tax receipt for the death benefit, which will cover the taxes on the transfer of the cottage. And, they are making a significant donation to charity.

Retirement Savings Plan (RSP), Retirement Income Fund (RIF), and Life Income Fund (LIF): by designating Conrad Grebel University College as a beneficiary of remaining RSPs LIFs and RIFs, the asset is transferred directly from the financial institution to Conrad Grebel, and the estate receives a tax credit to offset the tax on income. Since the asset passes outside the estate, no probate fees are payable, which results in further savings to the estate.

7. Naming opportunities

Bill Dyck

Many donors desire anonymity. Some donors wish to give their name or the name of a loved one to a project which will remember that person in perpetuity. All names are subject to the approval of the college's Board of Governors.

The naming opportunities include:

  1. Scholarships/bursaries - gifts of $25,000 or more.
  2. Lectureships - gifts of $50,000 or more.
  3. Artist in Residence $250,000 or more 
  4. New construction or major renovations of unnamed facilities - gifts of $500,000 or more.
  5. Professorship- $1,000,000 or more.
  6. Faculty Chairs - $3,000,000 or more.

Correct legal name:
The legal name of the college is Conrad Grebel University College.

8. Scholarship, bursary, and award endowments

Many scholarships, bursaries, and awards, have been made available through endowments and the generosity of various friends of the college. Students formally involved in the college's residence, associate and/or academic programs may apply for residence, academic, or general awards, scholarships and bursaries.

Students studying

These brief descriptions are a guide only, please consult the designated contact person for a complete description, criteria and an application form.

Award

It is a general designation applied to any scholarship, prize, medal, fellowship or grant of money assigned to a student. Within this designation there are further terms defined below.

Scholarship

A monetary award, based primarily on outstanding overall academic performance or excellence in a specific subject or group of subjects.

Bursary

A monetary grant based primarily on financial need.

Contacts

If you wish more information about planned giving or projects at Conrad Grebel University College, please call or write:

Jim Pankratz, Interim President
Fred W. Martin, Director of Development

Download this form - print it, fill in details on your Legacy Gift plans and send it to our attention at Grebel

Conrad Grebel University College , 140 Westmount Road N, Waterloo, ON N2L 3G6.

Phone: 519 885-0220 x 24381

Or talk to a Stewardship Consultant at Canadian Association of Gift Planners, or Abundance Canada.