The Commemorative Gift: In Memory or Honour of Another

Outright Gift

Various giving techniques may be used in making a commemorative gift, and each yields certain tax benefits. If you have available resources and would like to see your gift go to work at once, consider an “outright gift.” Here’s an example:

Mary B.’s mother recently passed away and she wants to do something special to pay tribute to her memory. She contacts the church where her mother volunteered for many years, and learns that it is seeking funding to decorate and furnish a conference room in a renovated parish centre. In memory of her mother, Mary contributes $25,000 for this project. The useful and attractive room will perpetuate her mother’s memory, and Mary will receive a donation receipt for the full amount of her gift. Assuming a federal/provincial tax credit of 48 percent, that can yield income tax savings of as much as $12,000.

Mary designated an immediate use for her gift. Other donors may prefer to direct their commemorative gifts to the parish’s endowment, where the gift principal remains intact and only the interest earnings are used, either for a purpose designated by the donor or for the Church’s general purposes. A “named endowment” is a particularly appropriate way to ensure that the name of the person honoured will be remembered far into the future.

Life Income Gift

Another technique that may be used to make a commemorative gift is the “life income gift,” which provides lifetime payments to the donor as well as a gift to the Church. Examples are the charitable gift annuity and the charitable remainder trust.

Carl H., a retired parish priest 74 years of age, wants very much to endow an annual grant for an indigenous training programme  in the North  in honour of his long-time mentor and friend who is now a retired bishop who served for years in a Council of the North diocese. Because he depends on the income from his assets, Carl contributes $75,000 for a charitable gift annuity. For the rest of his life, he will receive payments of $5,916 per year and 84% of this amount will be received tax-free. Carl is also entitled to a donation receipt of $18,750, reflecting the gift portion of his contribution that will be used to establish the (Named) Fund.

Bequest

A third technique for making a commemorative gift is the bequest.

Roger B.’s wife died last year, but he is deeply grateful to the parish where she found wonderful pastoral care and support  from the clergy and lay leaders.  As he updates his will, Roger includes a bequest of $100,000 to his parish church, where it will be used to establish an endowed fund in his wife’s name. Income distributions from the fund will honour her memory and enhance an already effective pastoral ministry programme. At Roger’s death, his estate will receive a donation receipt for the full amount of the gift. The tax credit will offset taxes on other income, including capital gain, which must be reported on his final return.

We’re here to help you

Mary, Roger and Carl have discovered the satisfaction that comes from honouring a friend or loved one by means of a commemorative gift. You can discover it, too — through The Anglican Church of Canada. We’ll gladly provide you with further information on the various ways of making a commemorative gift and our policies on named endowments. We would be pleased to discuss with you possible uses for your gift and appropriate recognition for the one in whose name it is given. Through The Anglican Church of Canada your tribute to one person will touch the lives of many others!

Charitable Registration Number: 10808 2835 RR0001

The information in this document does not constitute legal or financial advice and should not be relied upon as a substitute for professional advice. The Anglican Church of Canada encourages you to seek qualified legal, estate planning, and financial advice before deciding on a course of action.