Contribute to Change

A bequest remains one of the simplest and most accessible ways to plan a donation.

Several options are available:

• Specific bequest (a fixed amount or a specific asset)
• Residual bequest (all or a percentage of what remains after paying debts and specific bequests)
• Designating a contingent beneficiary if the primary beneficiary predeceases
• Universal bequest (all assets, sometimes divided among multiple beneficiaries)
• Naming a beneficiary of a retirement savings plan, pension fund, or life insurance policy
• A simultaneous death clause favoring a charity if all beneficiaries die at the same time

All these methods qualify for an official receipt that can be used on the donor’s income tax return following their passing. The tax benefits from a testamentary donation can significantly reduce the estate’s taxes.

You can name the Papillon Foundation as the beneficiary of a life insurance policy’s death benefit.

Here are two ways to donate without impacting your estate:
1. Transfer ownership of an existing life insurance policy to the Papillon Foundation, making it the owner and beneficiary. Each year, you pay the premium directly to the insurer. The insurer confirms the payment amount to the Papillon Foundation, which issues you a tax receipt equivalent to the insurance premium cost.

2. Designate the Foundation as the beneficiary of an existing life insurance policy: the death benefit is received as a donation. The Foundation issues a tax receipt to the estate, which can use the receipt as a 100% deductible credit. If there is an excess, it can be applied to the year before the policyholder’s death.

Federal and provincial governments allow holders of securities to donate without paying capital gains tax. Consult your accountant or tax advisor.

The donor transfers a capital amount to the Foundation, which uses part of it to purchase a commercial annuity from an insurance company.

Creating a charitable trust allows you to make a significant donation while continuing to receive income from the capital you transfer. The trust manages the capital until your death, at which point it is transferred to the designated charity. Establishing such a trust provides a donation receipt equal to the present value of the transferred assets.

An endowment fund is a contribution where the principal is invested in perpetuity or for a period of 10 years. Only the interest generated by this capital will be used to maintain the quality of services offered by the Papillon Foundation.

The principal of the endowment fund can consist of one or multiple types of donations:

• Cash donation
• Donation of securities (stocks, bonds)
• Bequest
• Life insurance policy donation
• A combination of donations.