The value of your policy as a gift to Chalice will be far more than the premiums you pay. Naming us your beneficiary is a low-cost way to make a larger gift than you might be able to, without depleting your current assets or estate later.
Consult with your life insurance provider on the type of policy that would best fit your needs. They can customize your program and carry out the necessary paperwork.
Giving through life insurance might appeal to you if:
- You would like to make a large gift but do not have the resources in your lifetime.
- You would like to guarantee that Chalice receives the full gift without contestation.
- You wish your gift to stay off the public record.
Other benefits of giving life insurance are:
- A gift of life insurance can produce tax relief annually for the premiums paid or a tax credit for your estate in the year of your death. *
- Life insurance is not subject to probate costs or delays in settlement. After a quick claim process, the proceeds are paid directly to Chalice.
- You can choose to remain anonymous.
- If you do not route your donation through your Will, your gift cannot be contested.
*You and your financial advisor can determine how to construct your gift to save tax for you during your lifetime or for your estate. During your lifetime, the donation limit is 75% of net income, and increases to 100% of your income in the year of death. Any excess tax credits generated in the year of your death can be carried back one year and applied to recover a portion of that year’s tax to a maximum of 100% of income for the previous year.
The five main ways to give a gift of life insurance:
- Existing Policies. You can take an existing permanent policy that has finished serving its original purpose and transfer the ownership and beneficiary designation to Chalice. Caution: If the cash value of the policy exceeds the donor’s adjusted cost basis in the policy, the donor will be required to report the difference as taxable income.
- A new life insurance policy. When you buy a new policy, you can name Chalice as the owner and beneficiary after you’ve paid one premium payment.
- Name Chalice as the beneficiary of your individual or group life insurance. If you are a salaried employee and have a benefit plan that has a death benefit component, consider naming Chalice as the beneficiary; it is an easy way to make a planned gift.
- Via your estate. You name your estate as beneficiary of a life insurance policy, and then make provisions in your will to leave a bequest to Chalice. *Caution: Proceeds will be subject to probate costs and can be challenged by creditors.
- You donate your dividends. At the time of death the benefits will be split, with the primary beneficiary receiving the face value, and Chalice receiving the accumulated dividends.
| Existing Policies | New policies | Individual or Group | Donating via Estate | Life insurance dividends | |
| Ownership | Chalice | Chalice | You | You | You |
| Flexibility | Irrevocable | Irrevocable. | You can change the beneficiary designation at any time. | You can change the beneficiary designation at any time. | You can change the beneficiary designation at any time. |
| Charitable tax receipts | Issued for the policy’s worth at the time of transfer and any continued premium payments.* | Issued for each premium payment after the initial payment. | Issued to your estate for the value of the policy proceeds paid to Chalice. | Issued to your estate for the value of the gift. | Issued for accumulated dividends given immediately as a cash gift. |
As you consider a gift to Chalice, please consult a trusted professional to consider your financial goals, review your tax situation, and ensure your gift is right for your circumstances.
Contact our Planned Giving and Major Gifts team (Peter, Wilson, or Catherine) at 1-800-776-6855 or planagift@chalice.ca
Chalice (Canada) Charity Registration Number 13759 1012 RR0001