Ways to Give

There are a number of methods to make philanthropic gifts which maximize the gift and minimize the taxes owing on income and estates for the donor. It is best to consult a professional financial advisor or accountant for the best advice regarding the method most advantageous in your personal circumstances.

Taking advantage of tax savings options can have profound results for the donor and recipient.

Donations may be made as endowments or in perpetuity, as well as annual donations.

Types of Gifts

Cash

The simplest gift is cash. The Faculty of Law receives immediate funding and the donor receives a charitable donation receipt.

Charitable bequest through a will

This could be for a specific amount or a percentage of your estate. Unlike annual donations, a bequest through a will is made as a disposition of capital assets such as securities, land and cash. RRSP’s, RRIF’s, RESP’s and life insurance may name the Faculty of Law as a beneficiary. Additionally, 100 percent of the donation may be applied against income in the year of death or the previous year to affect a further savings for the estate.

Life Insurance Policies

These provide a method for a donor to make a large future gift for very little cost. This can be accomplished through:
a) Purchase of a life insurance policy naming the Faculty of Law as owner and beneficiary. The donor receives a charitable donation credit for the premium payments during their life;
b) Donation of an existing policy, naming the Faculty of Law owner and beneficiary with the cash surrender value and any premiums paid (if applicable) being the donation:
c) Retain policy ownership and designate the Faculty as beneficiary directly or through the will, the donor’s estate is provided with a charitable donation receipt.

Appreciated Public Sercurities

In the May 2, 2006 budget, the Federal government eliminated the capital gains tax on gifts of listed securities to public charities like the University of Alberta. Direct transfer of stocks, mutual funds and bonds to the University will result in a charitable donation receipt for the full market value of the gift.

Charitable remainder trusts

The donor makes an irrevocable gift of assets to a trust managed by a trustee and income earned is paid to a named individual during their lifetime. The donor is entitled to a charitable donation receipt for the calculated value of the remainder trust that will pass on to the Faculty.

Other vehicles to consider are: real estate, charitable gift annuities, interest free loans, and gifts from private foundations. More detail is available on these options.

For more information, please contact:
Catherine Miller
Director of Development & Alumni Relations
Faculty of Law, University of Alberta
Ph (780) 492-5953
Fax (780) 492-4924
E-mail: cmiller@law.ualberta.ca