Deuteronomy 28: 8, 11
“The Lord will command the blessings upon you in your barns, and in all that you undertake; he will bless you in the land that the Lord your God is giving you. … The Lord will make you abound in prosperity… in the fruit of your ground in the land that the Lord swore to your ancestors to give you.”
A gift of life insurance is an affordable way to make a gift to the Diocese of Saskatoon Catholic Foundation Inc.
There are four ways for you to provide a charitable gift of life insurance.
- New Policy: Your annual premium is considered a charitable contribution when you make the Catholic Foundation the owner and beneficiary of the policy. You receive a tax receipt for its value which can offset annual income tax.
- Paid Up Policy: If you have a paid up policy that is no longer needed for your original purpose, it can be transferred to the Catholic Foundation. You receive a tax receipt for the fair market value of the policy which can offset income tax payable.
- Existing Policy: You can transfer ownership of your policy. The advantage is that you do not have to go through the process of buying a new policy which is beneficial if there is a health consideration that might result in a denied application. You will receive a charitable receipt for any cash value on transfer plus an annual receipt for premium payments.
- Named Beneficiary: Name the Diocese of Saskatoon Catholic Foundation Inc. beneficiary and receive a tax receipt to your estate for insurance proceeds paid directly to the Foundation.
Benefits of making a gift of life insurance to the Diocese of Saskatoon Catholic Foundation include:
- Receiving a tax receipt based on the way the insurance was gifted;
- Avoiding probate. Gifts of life insurance are less susceptible to being contested than a charitable bequest, and provide privacy;
- Designating your gift to a priority that meets your interests, such as a ministry, capital projects, library and other programs.
Life Insurance Policy Planned Gift Example:
You want to make a planned gift to the Diocese of Saskatoon Catholic Foundation, but you don’t have the funds to make a gift out of your current financial situation like what you want to. One option is to purchase a life insurance policy and make the Catholic Foundation the owner and beneficiary of that policy. You benefit today by receiving a tax donation receipt for the amount of the premiums you paid, and you receive the satisfaction of know you are leaving your faith community a wonderful legacy of hope.
Donor purchases a life insurance policy and makes the Diocese of Saskatoon Catholic Foundation the owner and beneficiary of the policy. The donor is entitled to a donation receipt for premiums paid to the insurance company after ownership has been transferred to the charity and for contributions made to the charity to cover the premiums.
Face Value of Policy
Premiums paid by Donor
Foundation issues a charitable donation receipt to donor to be used on donor’s annual income tax.
Tax Credit to Donor (assuming 44%)
After-tax cost of policy ($35,000 - $15,400)
The donor receives a $35,000 tax donation receipt which amounts to a $15,400 tax credit to reduce “tax owing”. The cost of the $100,000 policy is actually only $19,600.
If you would like more information about making a gift of life insurance to the Diocese of Saskatoon Catholic Foundation, please contact Jocelyne Hamoline, Planned Giving Officer at the address above, by email at firstname.lastname@example.org or by telephone at 306.659-5849.
This information is general in nature and does not constitute legal or financial advice, and should not be relied upon as a substitute for professional advice. We strongly encourage you to seek professional legal, estate planning and/or financial advice before deciding on your course of action.