PLANNED GIVING

Thank you for considering planned giving. We hope the information below is helpful to and your family your philanthropy, giving or legacy plans. You can help us ensure that the best research is funded and at the same time you can benefit by seeing your taxes lowered. There are many ways you can arrange a legacy via the Cystinosis Awareness & Research Effort by gifting stock, an insurance policy or annuity or by naming the Effort as a beneficiary in your will or trust.

Legacy/Planned Giving
As a donor you may want to consider, leaving a legacy gift as a way to express support for Cystinosis Awareness & Research Efforts. Legacy gifts help raise public awareness regarding cystinosis and promote viable treatment and research.

Legacy gifts may also provide financial benefits to the donor, too, by potentially in the form of tax savings depending on a donor's circumstances and objectives.

When considering a legacy gift there are a number of important factors to assess, including but not limited to the purpose of the gift, the assets to be used to fund the gift, the gift's timing, income-tax and estate-tax planning, and the gift's effect on the donor's family members and friends. We suggest that advice on this option be sought from investment, legal, tax or financial advisors.

In this section, the Cystinosis Awareness & Research Effort provides information on legacy giving as a guide to help donors choose the planned giving approach that may work best for them. The information provided here is for illustrative purposes only and should not be considered investment, legal, accounting, tax or other professional advice.

Why Engage Advisors?
Most experts agree that discussing your plans with your trusted advisors with experience in estate planning will save a donor and his or her family and beneficiary's time and money in the long run. This may include your accountant, lawyer, investment planner or other professional advisor. While you determine with your advisors at a business or personal level what goes into your will or trust, your legal advisor will make sure it is a proper legal statement of how you wish your possessions to be distributed.

To speak with a Planned Giving Advisor, please contact us at plannedgiving@cystinosis.ca or 519.880.9594.

Bequests Made Through Wills
Why create a will?
What are types of bequests?
Sample bequest clauses
Endowment Gifts
Donating Securities and Mutual Funds
Donating Life Insurance

Bequests Made Through Wills
Thank you for considering a bequest through your will. A bequest is often one realistic way for many donors to make a significant contribution to Cystinosis Awareness & Research Effort. We are pleased to provide the following information to help you and your legal advisor establish your estate plans.

Why Create A Will?
Wills and revocable living trusts are very important estate planning tools. Either allows you to name guardians for your minor children and to determine who will receive your property after your death, in what amounts and proportions and under what circumstances. Tax considerations also may affect the provisions of your will or living trust.

You have an opportunity in your estate plan to provide not only for your family and friends, but also for charity. Besides cash, you may also leave stocks, bonds and other types of property to charity.

Types of Bequests
When writing or updating your will, you can also make a real difference in finding a cure for cystinosis by naming Cystinosis Awareness & Research Effort as a beneficiary.

Here are some common bequest options a donor can consider:

Specific bequest: Determine a specific dollar amount or asset that you wish to leave to Cystinosis Awareness & Research Effort.
Residual bequest: After you have provided for your loved ones, name Cystinosis Awareness & Research Effort to receive a percentage or all of your residuary estate.
Contingent bequest: Cystinosis Awareness & Research Effort receives a bequest only in the event of the death of other beneficiaries.

Most experts agree that discussing your plans with your trusted advisors with experience in estate planning will save a donor and his or her family and beneficiary's time and money in the long run. This may include your accountant, lawyer, investment planner or other professional advisor. While you determine with your advisors at a business or personal level what goes into your will or trust, your legal advisor will make sure it is a proper legal statement of how you wish your possessions to be distributed.

To speak with a Planned Giving Advisor about leaving a bequest to Cystinosis Awareness & Research Effort, please contact us at plannedgiving@cystinosis.ca or 519.880.9495.

To help you think about the clauses in your will we have provided samples for you to discuss with your advisors.

Sample bequest clauses
The following clauses are commonly used in wills for making a gift to the Cystinosis Awareness & Research Effort. Your lawyer can use them to arrange a bequest in your will to the Cystinosis Awareness & Research Effort.

Percentage Gift
Should you wish to leave a portion or share (for example, 5%) of your estate to help conquer cystinosis, your lawyer can use the following wording:

"I direct my trustees to deliver, pay or transfer _________ per cent (or share) of the residue of my estate to the Cystinosis Awareness & Research Effort to be used for its general purposes."

Remainder or residue gift
You may wish to leave the remainder or residue of your estate, after paying debts and other bequests, to ensure that cystinosis will be beaten. If so, the following wording may be appropriate:

"I direct my trustees to deliver, pay or transfer the residue of my estate to the Cystinosis Awareness & Research Effort for its general purposes."

Specific gift
When your bequest is to be a specific amount of money or specific asset consider using one of the following clauses:

"I direct my trustees to deliver, pay or transfer the sum of $________ to the Cystinosis Awareness & Research Effort for its general purposes."

"I direct my trustees to deliver, pay or transfer ___________ [identify the personal property to be given, for example, 500 shares of XYZ stock...] to the Cystinosis Awareness & Research Effort for its general purposes."

Endowment Bequests
An endowment is a donation contribution where the original capital donation is preserved in perpetuity. The endowment bequest may enable your estate to realize tax benefits while giving you the satisfaction of helping.

There is a yearly administrative fee ranging from 0.005% to 2% payable to a service provider monitors the donation quota in addition to the investment management fees to your investment manager or an investment manager of the Cystinosis Awareness & Research Effort. Only a proportion of the gain every year from the original capital donation - the donation quota is provided to the Cystinosis Awareness & Research Effort.

To establish a general endowment fund use the following clause:

"I direct my trustees to deliver, pay or transfer the sum of $____________ (or____ percentage share of my estate) to the Cystinosis Awareness & Research Effort to be held in trust and kept invested, and the income from such sum shall be used for its general purposes."

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Endowment Gifts
Thank you for considering endowment gifts. An endowment gift can be made during your living years to pay lasting tribute to loved ones or to establish a legacy in your name. Gifts can be made in your name or the names of loved ones to the Cystinosis Awareness & Research Effort. These gifts can be funded by cash, stock, mutual funds or life insurance.

An endowment is a donation contribution where the original capital donation is preserved in perpetuity. There is a yearly administrative fee ranging from 0.005% to 2% payable to a service provider monitors the donation quota in addition to the investment management fees to your investment manager or an investment manager of the Cystinosis Awareness & Research Effort. Only a proportion of the gain every year from the original capital donation - the donation quota is provided to the Cystinosis Awareness & Research Effort.

For information about endowment gifts, please contact us at plannedgiving@cystinosis.ca or 519.880.9594

Donating Securities and Mutual Funds
Thank you for considering donating publicly traded securities or mutual funds. These gifts may enable you to realize tax benefits while giving you the satisfaction of helping.

If you own appreciated securities (stocks, bonds or mutual funds) donating them to the Cystinosis Awareness & Research Effort may allow you to reduce or avoid more capital gains taxes and receive a federal income tax charitable deduction.

Most experts agree that discussing your plans with your trusted advisors with experience in estate planning will save a donor and his or her family and beneficiary's time and money in the long run. This may include your accountant, lawyer, investment planner or other professional advisor. Determine your living giving strategy with your advisors at a business or personal level.

If you have a specific question about donating stock or securities, please contact plannedgiving@cystinosis.ca or 519.880.9495.

This is an example of the after tax benefits of selling the stock, then donating the cash proceeds from the sale compared to donating the shares directly. Assume that the value of the shares is $10,000 and the owner of the shares is at the 50% tax bracket.

	Sell Shares & Donate Cash	Donate Shares Directly
Fair market value	$10,000	$10,000
Cost basis	$2,000	$2,000
Capital gain	$8,000	$8,000
Taxable gain	$4,000	$0
Tax credit (example at 50%)	$5,000	$5,000
Tax on gain (example at 50%)	$2,000	$0
Tax savings	$3,000	$5,000

Donating Life Insurance
A gift of life insurance is an inexpensive way to help the Cystinosis Awareness and Research Effort. Such gifts are made by transferring ownership of an existing or new policy to The Cystinosis Awareness and Research Effort. You receive a tax receipt for premiums paid after the date of transfer. You can also name the Cystinosis Awareness and Research Effort as beneficiary of your policy - the resulting tax credit will reduce estate taxes and increase the after-tax value of your estate for other beneficiaries.
A gift of life insurance is an affordable way to make a difference. A modest annual premium paid over time will result in a significant future legacy.
Ways of gifting life insurance to the Cystinosis Awareness and Research Effort:

Donate an existing policy and receive a tax receipt for the net cash surrender value (less any outstanding policy loans) and any premiums paid after date of transfer of ownership to the Cystinosis Awareness and Research Effort. A portion of the cash value could be taxable but would be offset by the donation receipt tax credit.
Donate a new policy and receive a tax receipt for any premiums paid after the date of transfer of ownership to the Cystinosis Awareness and Research Effort.
Assign Cystinosis Awareness and Research Effort as the beneficiary of your policy, or the life insurance policy from your employer, and your estate will receive a tax receipt equal to the death benefit proceeds paid.

Benefits of making a gift of life insurance:

Receive a tax receipt based on the way the insurance was gifted
Avoid probate. Gifts of life insurance are less susceptible to being contested than a charitable bequest, and provide privacy

Example
In her early 60's, Helen would like to make a substantial gift to support research and a cure at the Cystinosis Awareness and Research Effort. She has an existing insurance policy of $125,000. She names the Cystinosis Awareness and Research Effort as both owner and beneficiary. She made 20 annual payments of $1,050 each and received a tax receipt for each payment. Assuming a combined federal/provincial tax credit equal to 50 per cent of the tax receipts, here annual tax savings were $525. Thus, her net cost for each premium was $525, and the future gift of $125,000 cost $10,500.

For more information on gifts of life insurance, please contact plannedgiving@cystinosis.ca or 519.880.9495.