Ways to Give - Plan a Gift for the Future
Planned gifts - through strategies such as bequests in your will, life insurance, annuities, gifts of property or securities, and trusts - allow you to create a lasting legacy at the Hebrew University of Jerusalem. Planned gifts may allow you to make a significant contribution to the University, with the added potential advantages of tax savings.
Please note that you can create a planned gift as part of Canadian Friends' current campaign for the Institute for Medical Research Israel-Canada (IMRIC).
You have many options for planned gifts, including:
GIVING THROUGH LIFE INSURANCE
Ways to give through insurance
- Buy a policy and name the University the owner and beneficiary;
- Donate an existing policy; or
- Make your estate the beneficiary of your policy and leave the proceeds to the University in your will.
Buy a policy
When you buy an insurance policy and name the University the owner and beneficiary, you can take advantage of immediate tax relief. You cover the premium costs with a gift to the University each year to cover the premium costs, and you receive a tax-creditable receipt for this entire amount.
Donate an existing policy
You can donate an existing life insurance policy to the University, and receive a tax-creditable receipt for your gift of the premium costs each year. If the policy is paid up, you will receive a tax-creditable receipt for a portion of the policy's cash value. To donate an existing policy, you will need to change the beneficiary to the University, which may require the approval of the original beneficiary.
Donate insurance benefits through your estate
You can name your estate the beneficiary of your policy, and leave the proceeds of the policy to the University in your will. Your estate then receives a tax-creditable receipt for your donation. Using this strategy, however, means that your donation could be subject to probate fees.
GIVING THROUGH A GIFT ANNUITY
"We don't want the bother of worrying about how investments are doing - we'd rather spend time with the grandkids. We want to make a difference to the world that comes after us, both for our grandchildren and for Israel."
Mr. & Mrs. S. F., Montreal
How gift annuities work
You make a donation to the University, which uses the gift to buy an annuity that pays you a guaranteed income, either for life or for a specified period of time. Depending on your age, your income from the annuity may be virtually or entirely tax free.
This is because the government regards annuity payments, provided they total less than the amount paid for the annuity, as a return of capital and therefore not subject to tax. Any portion received above the amount paid for the annuity would be subject to your personal rate of tax.
Here's an example. Mr. J., age 80, gives a gift of $60,000. In return, the University pays him an income of $5,000 annually for life, which he receives tax free. Actuarially, Mr. J. is expected to live another nine years, for a total of $45,000 in annuity payments. Therefore his charitable donation is deemed to be $15,000, the difference between the amount paid for the annuity and the payments received. Should Mr. J. live beyond nine years, however, his annuity income remains tax free.
REMAINDER TRUSTS AND RESIDUAL INTEREST
Mrs. L.S., Toronto
How remainder trusts and residual interest work
Gifts of residual interest usually involve the donation of a property such as a house. You would retain the use of the property for a predetermined period, usually your lifetime, and receive a tax credit for the present value of the property. At the end of the specified period, the property would revert to the control of the University.