What is "Planned Giving"?

There are at least two ways Presbyterians support their church financially.

We are all familiar with the weekly offering. If you use church envelopes, you can choose where your money is to be used such as your church's annual budget or building fund. You may also support national church programs such as Presbyterian World Service and Development or Presbyterians Sharing... through your offering. You probably also make contributions to special appeals — such as disaster relief — throughout the year.

These types of contributions usually come from your pocket book or bank account and are part of your weekly or monthly budgets.

The other type of financial contribution is long-term and usually involves some planning... hence the term 'planned giving'. This may include assets other than cash such as property, stock and annuities. Planned giving often reflects your personal experiences within the church and your specific passions when it comes to ministry.

Planned giving also needs to reflect your financial situation, and there are a number of financial planning tools to help you reduce your tax liability while at the same time supporting the ongoing work of the church.

How can I help The Presbyterian Church in Canada fulfill its mission?

The denomination depends on contributions from its members and friends to support work locally, regionally, nationally and around the world. Numerous worthwhile projects and ministries are being carried out right now while others are dreams for the future. They range from a local congregation's building or renovation program to overseas mission work by International Ministries or Presbyterian World Service and Development; from summer camps run by synods or presbyteries to the theological education provided at Knox College, St. Andrew's Hall or Presbyterian College; from Sunday school curriculum development to justice education; from university chaplaincies to native and inner city ministries to the spawning of new congregations.

In short, you are The Presbyterian Church in Canada. Whether you support a local building campaign or an overseas staff person half way around the world, you are supporting your denomination. All of the funds to support this wide range of church-related work come from Presbyterians with a passion for giving.

The denomination's Planned Giving office is there to provide solid, competent, professional financial management tools to all Presbyterians - whether those funds remain within a local community or are spread across denominational ministries.

How shall we then give?

What are the different ways to give, and which ones are best for you? The choices you make depend largely on your personal lifestyle. The needs and resources of a young family will be dramatically different from those of a retired couple. Before making decisions about your own planned gifts, it is important to talk to a reputable financial planning professional to ensure you get the results you want. That person will walk you through the options and will provide you with a tailor-made plan for your financial situation. Here is a brief overview.

Wills allow you to make a contribution that comes out of your estate — therefore it won't affect your resources while you are living and still need them. There is a significant tax advantage for your heirs. And if you donate a gift of property such as a cottage, you still get to enjoy it as part of your retirement lifestyle and your heirs will benefit from the tax advantage your gift earns through your estate. Wills, like all gifts, can be designated to the work of the church body that means the most to you: from your local congregation to denominational mission work in Canada and abroad.

Gift Annuities allow you to make a financial gift but still receive an income . . . and a portion, if not all, of the income is tax free. In addition, tax laws allow older seniors a one-time tax receipt for a portion of the total gift. Your income is guaranteed for life, and your income will remain constant.

Insurance is an ideal financial vehicle for young people to leave as an affordable legacy. You can purchase a policy for a tax deductible premium of a few dollars each month until the policy is paid, and leave a significant bequest for the work of the church.

Older people who have an insurance policy in force can name the church as owner and beneficiary. You get a tax credit for any cash in the policy and a tax receipt for any premiums still being paid. A distinct advantage of donating money in an insurance policy is that it is not usually 'active money' so it doesn't take cash out of your everyday income.

Publicly Traded Securities Present tax laws stipulate that if you sell publicly traded securities (stocks, bonds and mutual funds) privately, you are taxed on 50% of the capital gains. If you gift the securities directly to charity, however, you pay no taxes on capital gains while also receiving a tax donation receipt for the full market value of the securities. This means that the gifting of securities that have appreciated in value is a much more tax-efficient way to give to the church than a comparable size gift of cash. You can direct the proceeds of your gift to go to your local congregation or to any ministry you choose within The Presbyterian Church in Canada.

Gifts of Property will earn a tax receipt for the full appraised value which may save you the capital gains tax which you would have to pay if you cashed it in yourself.

A little goes a long way!

In many respects, Dorothy Neal is your average Canadian Presbyterian. She is an older retiree living in Sarnia, Ontario and a lifelong member of The Presbyterian Church in Canada. In fact, she remembers church union in 1925. She taught Sunday School outdoors when the church building was lost to union.

She has been involved in the Women's Missionary Society at many levels, including presbyterial president, synodical president and a member of the council executive. Dorothy has a passion for church history and for world mission.

She says she had read a lot about Planned Giving and knew that she wanted to 'do something' but it took a personal visit from Hendy Andrews to her church to really spark that decision. She decided to allocate $3,000 as a gift, one-half to her local congregation and one-half to a camp.

"It's going where I want it to go," Dorothy says, with a sparkle in her eyes. And that is the foundation of planned giving - making sure that some of your estate is designated to ministries which have special meaning for you.

Dorothy's gift — a few thousand dollars — will go a long way.

One doesn't need to be a multimillionaire, nor does one have to have a sizeable estate in order to leave a meaningful legacy to the church.

The church is supported by the Dorothy Neals of the world. And the church's various ministries will be carried on by meaningful gifts from ordinary Presbyterians across Canada.

Questions?

Contact the Planned Giving office at plannedgiving@presbyterian.ca. We can help you achieve your giving goals.