Legacy Giving

Offers flexibility and allows you to leave a significant gift in the future to Covenant House Toronto while retaining complete control of your assets during your lifetime.

You can leave a percentage of your estate, the residue or a specific cash donation, securities or property. A charitable tax receipt will be issued to your estate, which can lower or eliminate the tax on your estate, ultimately benefitting your heirs and beneficiaries.

Our legal name, address and Charitable Registration Number are below:

Covenant House Toronto
20 Gerrard St. East
Toronto, ON M5B 2P3

Charitable Registration No. 10699 0195 RR0001

If you would like to know how to leave Covenant House Toronto in your will, please refer to the Sample Bequest Wording.

By making a gift of life insurance, you can transform affordable premium payments into a substantial future donation that would be larger than you could have made in your lifetime. A gift of life insurance is separate from the estate and is therefore not subject to probate fees.

There are different ways you can use life insurance to donate to our cause. There can also be tax saving benefits:

• Name Covenant House Toronto as the beneficiary on your policy. We would receive the insurance proceeds like a regular beneficiary would. The payments to Covenant House Toronto would be considered a donation in the year of death. The receipt issued would qualify for a tax credit that could offset the income tax liability on your estate.
• Transfer ownership of an existing policy on which premiums remain to be paid directly to Covenant House Toronto with Covenant House Toronto being named as beneficiary of the policy. You would receive an official tax receipt for the cash surrender value of the policy and an annual tax receipt for your premium payments. This provides an immediate tax benefit while you are living.
• Transfer ownership of a paid-up policy to Covenant House Toronto with Covenant House Toronto being named as beneficiary. You will receive an official tax receipt for the cash surrender value of the policy.
• Purchase a new life insurance policy naming Covenant House Toronto as owner and beneficiary of the policy. You will receive an official tax receipt for the premiums you pay on the policy.

The elimination of the capital gains tax on a gift of securities may create a considerable tax advantage to you, depending on your financial situation.

If you make a gift of appreciated stock directly to a charity, you will receive the benefit of a tax receipt for the fair market value of the stock at closing on the day the gift is received and not be subject to paying the capital gains tax. If on the other hand, you sell your stock and then donate the proceeds to charity, you will pay tax on one-half of the capital gain.

For example, if you were to donate stock that was originally purchased for $4,000 and now has a fair market value of $15,000, and your marginal tax rate is 50%:

When you donate stock directly to Covenant House, you save $2,750 in taxes on your $15,000 gift.  You will receive a charitable tax receipt for $15,000 which you can use to offset your taxes on other sources of income.

When we receive your donation of stock, we immediately sell the shares through the assistance of CIBC Wood Gundy, our investment firm. To begin the process, see our Share Transfer form.

A Charitable Gift Annuity is a dependable and unique way for an individual 70 years and older to leave a meaningful gift to Covenant House Toronto while receiving guaranteed regular income payments for life, at a rate of return higher than a GIC or savings bond.

A Charitable Gift Annuity is purchased by making a lump sum payment to Covenant House Toronto.  A portion of your payment is used to purchase a commercial annuity from an insurance company that will pay you guaranteed fixed income payments for life.  The balance of your payment will be donated to Covenant House Toronto, for which you will receive a donation tax receipt that will offset your taxes on other sources of income. Depending on your age, a significant portion or all of your income payments will be “tax-free.”

If you are interested in acquiring a Charitable Gift Annuity and would like to receive a personalized quote that shows the payments you will receive, the frequency of your payments, the amount of your payments that will be tax-free and your donation receipt amount, please let us know, we will provide you with a free quote. There is no obligation on your part to purchase an annuity when you request a quote.

Retirement funds are among the most heavily taxed assets.  Unless you are able to roll over your RRSP or RRIF to your surviving spouse or transfer them to a child who has a disability, they will be fully taxed.

You can name Covenant House Toronto as a sole or one of your beneficiaries on your RRSP or RRIF.  Your estate will receive a tax receipt for the value of the fund received by Covenant House Toronto thereby reducing your overall estate taxes.  These funds are not subject to probate fees.

Donating your RRSP or RRIF is simple and straightforward.  You can request a Beneficiary Change form from your retirement plan administrator and name Covenant House Toronto as a beneficiary on all or part of your RRSP or RRIF.  When you have completed the form, return it to your retirement plan administrator.

A Charitable Remainder Trust (or CRT) is created when you transfer cash, investments or real estate (known as “Capital”) into a trust, while retaining use of the assets and naming Covenant House Toronto as the remainder beneficiary of the trust.  A Charitable Remainder Trust is suitable for donors who are 60 years and older.

A CRT is a trust that is set up by you and your financial and legal advisors.  It is managed by a trustee such as a financial institution, a lawyer or yourself.   The trust can be for a term of years or for your lifetime. You will be paid income from the trust during the term of the trust or until your death, after which the asset or “Capital” will be transferred to Covenant House Toronto.

You will receive a donation receipt at the time the trust is set up, allowing you to receive the tax benefits today.  The amount of the receipt will be issued for the present value of the remainder interest and is based on a formula established by Canada Revenue Agency (CRA).  Since this gift is made in your lifetime, it is not subject to probate fees.

Since a CRT is irrevocable (permanent), it is essential to obtain legal and financial advice.

Property refers to tangible assets such as real estate, works of art and special collections which can be donated to Covenant House Toronto   You can enjoy the right to your property during your lifetime and receive a charitable tax receipt now and upon your death, the property will be transferred to Covenant House Toronto.

A gift of property made in your lifetime will help you save on taxes.  Since it is not part of your will it is not subject to probate and probate fees.  The charitable tax receipt issued will be based on the type of property donated and a professional qualified appraisal.

If you would like to make a gift of property, please note that these gifts require Covenant House Toronto approval in advance of acceptance.