If you need the income from your investments to live on, but would like to help animals in need, then consider donating into the Animal Protection Trust. The Trust allows you to give a gift to the Ontario SPCA, while continuing to enjoy the income it generates to support your retirement lifestyle. When you pass away, the Trust will go to the Ontario SPCA to continue its vital work of saving and protecting animals.
How it works
When you donate into the Animal Protection Trust, you are creating a legal trust that states that you are giving the investments to the Ontario SPCA, but want to keep the income as long as you live. Since you are giving the investments to the Ontario SPCA you are permitted by Revenue Canada to receive a tax receipt for part of the investment. Cash or securities can be donated into the Trust.
Types of trusts you can consider
As you consider making a charitable trust it may be appropriate to discuss the following options with your lawyer or financial advisor.
1. Spousal Charitable Trust: A spousal trust is appropriate when you want to save and protect animals, but also want to take care of your spouse. By including instructions in your will to place the estate assets into a spousal trust, your spouse becomes the income beneficiary with the Ontario SCPA as the capital beneficiary. Your husband or wife is allowed to use and receive income from the estate assets until he or she passes away, and then the principal is passed on to the Ontario SPCA.
2. Residual Interest Trust: A residual trust allows you to transfer a home, cottage, artwork, or any other property into a trust for the Ontario SPCA while you retain use of the property for a specific time, or until you pass away. In return, you will receive a discounted tax receipt.
If you plan to donate to the Animal Protection Trust, you may also wish to consider marking your trust to an Endowment Fund. Designating your Animal Protection Trust to an endowment fund allows you to provide a lasting gift. The original funds you donate are permanently invested, and only the income is used for the Ontario SPCA's lifesaving work. You can honour your family, a special person or a pet that you love with a personally named Fund, or choose a designated Fund to support a specific purpose close to your heart. To learn more, click here.
Charitable Trust example:
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Gregory Hill is 72-years-old and he loves animals. He wants to establish The Hill Endowment Fund to help educate the public on animal care. Gregory wants to donate $100,000, but he's reluctant because he might need the income if he becomes sick. He decides to place the money into the Ontario SPCA Animal Protection Trust.
The trust will pay Gregory an average of $4,500 (4.5 per cent) taxable income per year. Due to his age and estimated income from the Trust, he will get a discounted tax receipt of $54,956.42. Gregory will save $25,279.95 in taxes, receive $4,500 in income every year, and when he passes away the $100,000 will be used to fund The Hill Endowment Fund to prevent cruelty through community outreach programs, education literature and awareness campaigns. |
Amount of Charitable Remainder Trust
$100,000 Discounted tax receipt $54,956.42 Income received each year $4,500 (4.5 per cent) Taxes saved $25,279.95 Amount to be used for The Hill Endowment Fund $100,000 |
How to donate to the Animal Protection Trust
For more information about giving to the Animal Protection Trust, please contact: 1-888-ONT-SPCA (668-7722) or donate@ospca.on.ca. Thank you for considering making this special commitment.
Note: For legal, tax or investment advice, please consult a lawyer or investment professional.
The Ontario SPCA's full legal name is "Ontario Society for the Prevention of Cruelty to Animals," and our charitable registration number is 889691044RR0002. If you would like to designate your gift to a specific Ontario SPCA Branch, please list the charitable registration number above and specify the Branch.
