Types of Gifts

Understanding ways to give can help you maximize your impact, lead to financial planning solutions and minimize your taxes. The Ottawa Community Foundation accepts donations in the following forms with the assistance of our professional partners. We can work with your professional advisors to help find the optimal giving structure for you to achieve your philanthropic and financial goals.

Cash

Making a gift of cash is a simple way to make a donation to a Community Foundation fund. This type of gift can include cheques, money orders, and online credit card payments, which can also be set up as pre-authorized regular contributions. These gifts qualify for maximum charitable benefit under federal law.

Publicly listed securities

Donating appreciated securities to the Community Foundation allows you to eliminate or reduce capital gains tax and receive an immediate tax receipt for the market value of the securities. To donate securities, please complete this Gift of Shares Form describing the securities you wish to donate. The Ottawa Community Foundation is unable to accept paper stock certificate donations.

Bequests

Over the years, the Foundation has accepted many bequests. Bequests can be in the form of a specific amount or the residue of an estate. The Foundation can provide suggested wording for a will which should be reviewed with a professional advisor. Donors of bequest can receive a substantial reduction in federal gift and estate taxes.

Life Insurance


There are three ways to donate by life insurance:

  1. The Ottawa Community Foundation (and any fund it administers*) may be designated as the owner and beneficiary of a new policy. The premiums qualify for a charitable tax receipt.
  2. The Ottawa Community Foundation (and any fund it administers*) may be designated as the beneficiary of an existing life insurance policy. The estate will receive a charitable tax receipt when the proceeds of the policy are paid to the Ottawa Community Foundation.
  3. The Ottawa Community Foundation (and any fund it administers*) may be assigned ownership of a life insurance policy during a donor’s lifetime. A tax receipt will be issued for the fair market value of a policy at the time of donation. If the policy requires future premium payments, these payments qualify for an annual charitable tax receipt and the donor can pay them in one of two ways:
    • The donor pays the life insurance company directly and the Ottawa Community Foundation confirms the payments were made (at year end) and then issues the tax receipt.
    • The donor gives the charity the funds to pay the premium payments and the charity pays them to the life insurance company (this could be done using a gift of shares for example). A tax receipt is issued upon payment.

* When designating an OCF fund as a beneficiary or owner of a policy, you must include “The Ottawa Community Foundation” along with the fund name (e.g., “The Ottawa Community Foundation – Fund Name”).

RRSPs / RRIFs

The proceeds from a RRSP and RRIF may be 100% taxable income to the deceased in the year of death if the assets are not transferred or ‘rolled-over’ to a qualified beneficiary. By designating a charity as the beneficiary of a registered plan, the resulting Donation Tax Credit can help to offset the taxes owing on the income. These gifts are also not subject to probate nor to the administrative delays associated with estates, which helps to increase the impact of your gift.

Flow Through Shares

Flow Through Share Donations (FTSD) are a structured gifting arrangement first transacted under CRA and Revenu Quebec Advance Tax Rulings in 2007. Flow Through Share Donation transactions benefit share issuers, remote communities, donors and charities. This giving strategy may enable donors to achieve their donation at a fraction of the after-tax cost of a cash donation by combining two tax benefits: flow through shares, which have in place since the 1970’s and the donation of publicly traded securities to charity.

CPP

With very few exceptions, every working Canadian over the age of 18 must contribute to the Canada Pension Plan (“CPP”). For many retired Canadians, CPP and Old Age Security benefits are vitally important to pay bills and other living expenses. If you are one of those who may not need your monthly Canada Pension Plan (CPP) benefits , instead of letting your CPP money be taxed, re-invested and then taxed again, you can use a CPP Philanthropy strategy that enables your CPP benefits to fund a permanent life insurance policy, creating a substantial windfall for your family and the causes you care about.