Planned Giving

Gift of Securities ?

A gift of securities includes any financial instrument listed on a stock exchange, including shares, bonds, mutual fund units, stock purchase warrants or derivative financial instruments. Although private share donations may be acceptable under certain conditions, Collège Boréal tends to favour publicly traded securities, primarily due to their tax incentives.

These tax incentives make the gift of publicly traded securities an even more attractive option. For example, donors who choose to sell their shares must pay a 50% tax on the capital gain amount that is the sale proceeds, less the adjusted cost base of the securities. However, donors who choose to donate their securities to Collège Boréal will pay no tax on the capital gain. Also, they will receive a tax receipt for the full value of the securities upon transfer. The gift of securities, therefore, has significant benefits for the donor. To understand the value of the tax savings from a gift of securities, see our example. Now do the math and see the results of your donation for yourself using our simulation tool.

The following are particularly important steps to keep in mind when donating securities:

  • donors are invited to contact an Advancement and Alumni Relations officer to discuss any questions pertaining to their intended donation;
  • the officer will inform the donor on how to make an electronic transfer of securities from their broker to Collège Boréal’s broker;
  • Collège Boréal’s broker will forward its appraisal of the fair market value of the securities to the OAAR;
  • Collège Boréal will issue a tax receipt;
  • Collège Boréal will manage the gift of securities following its agreement with the donor.

We invite you to consult an OAAR professional for help in choosing the best option for your needs and situation.

Life Insurance Gift ?

A life insurance gift allows you to make a charitable donation to Collège Boréal through your life insurance policy. It also presents the following benefits:

  • substantial donation at a moderate cost;
  • immediate or deferred tax credits depending on the chosen option;
  • no impact on the value of your estate;
  • life insurance claims paid directly to Collège Boréal.

When you choose to make this type of donation to Collège Boréal, you have a number of options. The following are usually the most popular:

  • purchase a new life insurance policy designating Collège Boréal as the owner and irrevocable beneficiary, entitling you to a tax credit for the full amount of the premiums paid;
  • transfer an existing policy you no longer need by designating Collège Boréal as its owner and irrevocable beneficiary, entitling you to a tax credit equal to its fair market value;
  • designate Collège Boréal as the beneficiary of your new or existing life insurance policy, meaning that upon your death, your estate will be entitled to a tax credit, and your donation will be excluded from the estate;
  • designate Collège Boréal as the irrevocable beneficiary of the death benefit of the group life insurance you hold as an employee of the college, which entitles you to receive an annual tax credit equivalent to the employee-paid premiums.

It is important to keep in mind that the most attractive benefits of a life insurance gift are the tax incentives, which are comparable to those associated with a cash donation at a lesser cost.

Please consult a professional at the Office of Advancement and Alumni Relations for help in choosing the best option for your needs and situation.

Charitable Gift Annuity ?

A charitable gift annuity allows you to make a substantial donation to Collège Boréal and still have a fixed and comfortable income.

Your capital contribution serves two purposes:

  • it allows Collège Boréal to use part of the gift to buy annuities from an authorized institution (insurance or trust company), which in turn allows you to benefit from a guaranteed lifetime income;
  • the other part of your contribution is presented as a donation to Collège Boréal.

A charitable gift annuity is especially appropriate for donors aged 65 years or older making a significant capital contribution since it offers both interesting tax benefits and substantial annuity payments.

Essentially, charitable gift annuities offer the following benefits for the donor:

  • increased profitability, especially since this guaranteed income is totally or partly tax-free, depending on the donor’s age;
  • a fully contractually guaranteed lifetime investment for the donor;
  • worry-free management;
  • no negative impact following eventually decreased interest rates thanks to a predetermined income amount.

Before making a decision, you must carefully review your financial, tax and estate situation. For example, what is your annual tax rate? What is your expected annual annuity income? What proportion of your capital do you expect to contribute to this type of donation?

To help you choose the best option for your needs and situation, we invite you to consult with a professional at the Office of Advancement and Alumni Relations.

Testamentary Gift ?

A testamentary gift or bequest is the most common type of planned gift. A will, preferably a notarial one, is easy to prepare and manage and guarantees that your property will be managed according to your wishes.

Besides ensuring the financial security of your loved ones, a notarial will allows you to support Collège Boréal by bequeathing some or all of your property or the residue of your estate. Moreover, a will presents significant tax benefits for your estate in the form of a tax credit up to 100% of your net income in the year of your death.

An important point to clarify is that a testamentary gift does not have to be cash. It may also consist of publicly traded securities, a life insurance policy, real estate or other property such as works of art.

There are different types of testamentary gifts, including the following:

  • legacy by general title designating Collège Boréal as the sole beneficiary of the entire estate;
  • a particular legacy designating Collège Boréal as the beneficiary of part of the estate;
  • a residuary legacy designating Collège Boréal as the beneficiary of some or all of the residue portion of the bequeathed assets after your beneficiaries have received their portion and after payment of all debts, taxes, duties and expenses.

If you are considering making a testamentary gift to Collège Boréal, we recommend that you notify the Office of Advancement and Alumni Relations in advance. They will help you prepare the terms of your donation so that they conform to the college’s standards and will ensure that your donation is made according to your wishes. We suggest you consult the attached document for information about the different types of legacies. The confidentiality of your contribution will be respected.

We invite you to consult an officer of the OAAR for help in choosing the best option for your needs and situation.

Gift-in-Kind ?

A gift-in-kind is a donation of property other than cash made out to Collège Boréal. It may include real estate, designated personal property (works of art, rare books, etc.) or securities.

It can be a one-time gift of property or a gift with usufruct, which means you can transfer ownership of a property while continuing to use it.

We invite you to consult a professional at the Office of Advancement and Alumni Relations for help in choosing the option best suited to your needs and situation.

As with any planned donation, we strongly recommend consulting with a financial planner to better understand the different types of gifts-in-kind and any related tax benefits.