"Planned giving expresses your life values 

and helps to make the world a better place

 because of your having been in it."

If you are like most individuals considering making a charitable donation, you will probably reach for your wallet, chequebook or credit card.  Once an official tax receipt is obtained, you are entitled to claim a tax credit on your income tax return.  However, you should be aware that some forms of charitable giving are more tax efficient than others.

In recent years, the Federal government has created more generous tax incentive programs for individuals to make charitable contributions.  After seeking the advice of professionals and giving thoughtful reflection on your financial and estate goals, please consider the following ways of supporting The Military C&E Museum Foundation.

• Includes stocks, bonds, mutual fund units, federal and provincial bills, warrants and futures traded on approved stock exchanges in Canada and certain other countries.
  
  
• Quality for immediate tax receipts for the fair market value of the gift at close of business on the date of transfer.
  
  
• Allow donors to cut taxable portion of any capital gain realized on transfer by one-half.

• Include such items as real estate, art, equipment, private securities and other tangible personal property provided that they are in keeping with the Foundation's "Acquisitions Policy".
  
  
• As with stock and securities, the tax consequences of giving to charity in this way include the realization of a capitol gain, as well as the recapture of any capital cost allowance in the case of depreciable property such as real estate.
  
  
• Property may be sold with the cash proceeds directed to the donor's chosen project in support of the Military C&E Museum.
  
  
• Certain items may he of direct use to enhance the objectives of the Museum and therefore, may be handled as a Gift to the Crown.
  
  
• Qualify for an immediate tax receipt for the Fair Market value oft the property donated as assessed by one or more independent professional appraisers.

• In this case, tile Foundation is made the beneficiary, as well as the owner, of the life insurance policy and file charitable tax credit is available to the donor now.
  
  
• An irrevocable donation in this way entitles the donor to a charitable tax credit based on the Cash Surrender Value, plus the accumulated dividends and interest less any policy loans.
  
  
• Charitable giving in this way, means that any future premiums will also be allowed as a charitable tax credit, but the policy's death benefit does not qualify' for any tax benefit.
  
  
• Since the Foundation is the owner of' the policy, it can pay the premiums if the donor ceases to do so, as an alternative, the policy may be cashed or rendered "paid up" with a reduced death benefit.

• This is the common way of giving to a charity and can be changed at any time in your life if circumstances change.
  
  
• Bequests provide a 100% charitable tax credit to the estate to be used against donor's income in the year of death and the previous year.
  
  
• You should seek your Lawyer's advice because a properly drafted Will is essential to ensure your wishes are followed.  The Military Communications and Electronics Museum Foundation must be specifically named in the Will.

• Where tile Foundation is the named beneficiary, but not the, owner, of the life insurance policy, the charitable tax credit will be available to he deceased to offset income on the terminal return and is based on the death benefit under the policy.
  
  
• The beneficiary designation call always be changed by the owner if the donor's circumstances should happen to change.
  
  
• On the other hand, if the estate is the policy's beneficiary, and the proceeds are to be donated to the Foundation, a properly drafted Will is essential to ensure your estate will be allowed the charitable tax credit.

• RRSPs and RRIFs are among the most highly taxed in your estate.  At your death, unless they flow through to a spouse or a disabled dependent, RRSPs and RRIFs are treated as if they had been cashed in all at once and taken into income.  The tax consequences on a large amount of income of this type can be quite significant.
  
  
• A 100% charitable tax credit is available to your Estate when an RRSP or RRIF is donated directly to the Foundation through a beneficiary designation on the Plan.

• This is all arrangement whereby an irrevocable donation is made .and an annuity is purchased to provide periodic income for the life of the donor or for a set number of years (call include a " joint and last survivor" annuity in the case of couples).
  
  
• The Foundation will be entitled to the capital remaining at the donor's death. Alternatively, the annuity can be arranged so that a portion of the capital can he available before the donor's death.
  
  
• This method of giving is best suited to elderly donors.
  
  
• A charitable tax receipt may be issued in cases where the contribution exceeds the expected total return.

• Rather than all outright gift property, this 1nctllod entitles tile donor to the use of the property and all of the trust's income and, in turn, entitles the Foundation, as tile irrevocable capital beneficiary of the trust, to the remaining capital on the donor's death (or "second death" in tile case of couples).
  
  
• Any income paid to tile donor from tile trust will he taxable to tile donor and the donor has no right to encroach oil the capital of the trust.
  
  
• An immediate tax receipt is issued equal to the "present value" of the Foundation's capital interest in the trust-equals the amount to be donated less the present value of the donor's interest in the trust (calculated based on value of gift, current interest rates, and life expectancy of donor).
  
  
• Because of complex and irrevocable nature of these trusts, professional advice and assistance is essential.

If you would like to discuss any of these

options, or need further

information, please contact the

 "PLANNED GIVING COORDINATOR"

at ---

The Military Communications & Electronics Museum Foundation
PO Box 17000 Station Forces
Kingston, Ontario
K7K 7B4
Office (613)541-4211
Fax (613) 540-8111

BN 89877 2751 RR 0001