Financial Gifts

The work of Mill Woods United Church — to nurture spiritual growth, to promote the well-being of the neighbourhood, and to struggle for social justice — relies on your gifts of time, talent, and treasure.

 

Thank you.

Below are some ways you can give financially.

Thank you for considering a financial gift to Mill Woods United Church.

Electronic Transfer

Use the email address mwuc3@telus.net to make an electronic transfer directly to Mill Woods United Church. In the comment section, indicate the purpose of the donation (E.g. Local, Capital, Memorial, and so on).

Pre-Authorized Remittance

PAR is a form of direct debit, and is the most cost-effective way to contribute. Through a monthly automatic bank transfer, PAR ensures that 100 percent of your gift goes directly to the church — there are no third-party processing fees. Mill Woods United Church (MWUC) then issues an annual tax receipt.

  • PAR allows you to determine a monthly gift that fits your budget.

  • PAR supports the church even on Sundays you aren’t able to attend.

  • PAR gives the church the ability to plan ahead for the programs and people that support our values.

 

To sign up for Pre Authorized Giving, print and fill out a PAR form:

  • via Bank Account accessible via this link

  • via Credit Card accessible via this link and mail or bring it into the church office.

 

To change your PAR givings, contact the Office Administrator in person, by phone (780-463-2202) or by email (mwuc1@telus.net). Church staff are always willing to help with this task in-person or on the phone.

Click here for the Mill Woods United Church’s Canada Helps page where you can make an immediate online donation.

Canada Helps is a third party processor of secure online donations to Canadian registered charities. Canada Helps retains approximately 3.9% processing fee. A receipt will be emailed to you by Canada Helps.

Envelopes/Cheques/Cash

Those who don’t want to give by PAR, sometimes give with personalized envelopes, which you can request via the church office. MWUC pays the cost of personalized envelopes, and receipts donations made annually. To arrange for offering envelopes, contact the Administrator at mwuc1@telus.net. Visitor envelopes are always available on the hymn book cart.

Bequests

When writing a will, many people designate part of their estate to a charity like Mill Woods United Church.

A bequest is a gift made in the “Last Will and Testament” of an individual. Bequests are the most common type of planned gift accounting for about 80% of all planned giving in Canada.

Upon death, your estate is entitled to a donation receipt for the full value of your bequest gift, which could mean a significant tax credit on your final tax return.

When you make a bequest to the church, your estate is eligible to receive a donation receipt for the full value of your bequest. The executor for your estate can then claim a tax credit for up to 100% of the net income on your final tax return. Any unused credits can be applied against your previous year’s income, again up to 100% of your net income. This means that you can make a significant charitable gift, and your estate and heirs reap the tax benefits of your generosity.

Two examples:

  1. Connie L, a widow, left $100,000 to the church and the remainder of her estate to her two children. Connie had remaining RIF with $300,000 that became taxable income in the year of Connie’s death. In Connie’s case, the entire bequest amount was applied against her taxable income, which was over $100,000. The combined tax credit is 50 percent, which resulted in tax savings of $50,000. If she had left the $100,000 to her children instead of giving it to the church, taxes would have consumed $45,000 tax, leaving the children with only $55,000, just $5,000 more than they would have received if their mother had not made her charitable bequest. In effect, $2,500 less for each of Connie’s two children meant $100,000 available for the church’s ministry! (Special note: Tax credits vary depending on the province of residence. The range was 43.5% to 50% and are 50% in Alberta)

  2. Mrs. X died on February 15th. In her will, she left the church a general bequest of $100,000. Since she died so early in the year, her taxable income in the year of death was only $15,000. Her net income for the previous year was $50,000 of which she gave $5,000 to the church and to other charities. In Mrs. X’s final tax return, the executor can only claim $15,000 of the $100,000 donation receipt. The executor can then amend Mrs. X’s previous year’s tax return and claim the tax credit on an additional $45,000 in donations. Since the 100% donation limit was reached in both years, however, there is $40,000 worth of donations ($100,000 – $15,000 – $45,000 = $40,000) that cannot be claimed.

As can be seen from these examples the benefit of giving through a bequest is dependent on many factors and it is very important to involve your financial adviser to determine of this type of donation is right for you and your circumstances. A change to your last will and testament will be required to make a bequest.

First steps:

  1. Contact the United Church of Canada Foundation for basic information on how to make a bequest

  2. Talk to a financial adviser

  3. Talk to a lawyer

For more information, click this link to a relevant section of the website of the United Church of Canada

Donating Stocks or Mutual Funds

Donating stocks or mutual funds to Mill Woods United Church through the United Church of Canada Foundation offers several benefits. For one, capital gains tax is forgiven, which increases your after-tax benefit.

Example: Joe has 50 shares of XYZ stock he bought for $20 a share, and which are worth $120 a share today. He plans to donate the value of these shares to Mill Woods United Church. He could sell the stock and have a $5,000 capital gain, which, at the marginal rate of 35%, would give Joe a $875 tax bill. Alternatively, he could donate the stock to MWUC through the United Church of Canada Foundation in which case the capital gain is forgiven, and Joe gets a tax credit for a $6,000 donation. By donating his stocks through the Foundation, Joe saves $875 of tax on his contribution.

Joe makes $2,950-1,000 original cost of investment = $1,950 profit after tax by donating stock. But if he sold the shares and donated the cash, he would make $2,950-$1,000 original cost -$875=$1075 profit. In both cases the church would receive a $6000.00 donation.

Limitations

  • Up to 75% of a taxpayer’s net income can be claimed as donations, except in the year of death or the year preceding death, when 100% of net income can be claimed as donations.

  • The tax owing in the year of donation cannot be reduced below $0.00.

  • You can carry donations forward for 5 years.

  • The gift must be over $300.

How to donate stock or mutual fund

  1. The United Church Foundation acts as the facilitator of this process.

  2. Contact the United Church Foundation at phone 1-866-340-8223 or go to the website

  3. Let the foundation know where the proceeds are to be sent i.e. Mill Woods United and who your broker is

  4. They will send you a Transfer Form to complete and have you send a copy to the Foundation and fax a copy to your broker. This ensures they are able to provide you with a receipt and know what you want us to do with the proceeds of the sale. This form will be customized for your brokerage.

  5. Your broker transfers the stock or mutual fund you directed to the Foundation.

  6. The Foundation sells the securities as soon as possible and then passes on the proceeds to the organization you listed on the form.

  7. The Foundation provides you with a tax receipt for the value of the shares or mutual fund units at the close of the markets on the day the Foundation receives them.

Donating RRSP/RRIF While Alive

Canadian tax policies that allow Register Retirement Savings Plans and Registered Retirement Investment Funds (RRSPs and RRIFs) have led many of us to shield significant amounts of money from tax for use in retirement.

You can donate all or part of an RRSP or an RRIF to a charity like Mill Woods United Church at any time. You can also donate them as a bequest via your last will and testament.

You might want to donate part of your RRSP/RRIF while alive and use the tax credit to reduce tax owing. This option usually applies to those who are not contributing to an RRSP. The inter vivos (in life) contributions from an RRSP or RRIF account will allow the donor to claim a donation tax credit (in Alberta 25% on first $200 and 50% on remaining contribution). This credit will exceed the tax imposed on the RRSP withdrawal.

Making an inter vivos donation from an RRSP or RRIF is an important estate planning tool for individuals who are likely to have significant unused RRSP/RRIF assets upon death. As with all significant gifts to charity, careful planning is required to realize the maximum impact of the donation. Donors should seek independent accounting advice when considering a gift funded from RRSP/RRIF assets.

Limitations

  1. Up to 75% of a taxpayer’s net income can be claimed as donations, except in the year of death or the year preceding death, when 100% of net income can be claimed as donations. 

  2. The tax owing in the year of donation cannot be reduced below $0.00.

Donating RRSPs and RRIFs as a Bequest

Canadian tax policies that allow Register Retirement Savings Plans and Registered Retirement Investment Funds (RRSPs and RRIFs) have led many of us to shield significant amounts of money from tax for use in retirement.

You can donate all or part of an RRSP or an RRIF to a charity like Mill Woods United Church at any time. You can also donate them as a bequest via your last will and testament.

Since assets can be transferred to the surviving spouse without tax penalty, it is a surviving spouse that most often makes a donation of an RRSP or RRIF to a charity like Mill Woods United Church. One can name multiple beneficiaries, including one’s family and charities.

Upon the death of a surviving spouse, the cash in a RRIF or RRSP becomes income, which can have tax implications. For this reason, donating a RRIF or RRSP to a charity can have positive tax implications.

When you make a donation of all or a portion of an RRSP/RRIF to the church, your estate is eligible to receive a donation receipt for the full value of your donation. The executor for your estate can then claim a tax credit for up to 100% of the net income on your final tax return. Any unused credits can be applied against your previous year’s income, again up to 100% of your net income. This means that you can make a significant charitable gift, and your estate and heirs reap the tax benefits of your generosity with reduced taxes on your estate.

A deferred donation is advantageous because, when plan assets are directly designated, they are not included in your estate and are not subject to probate fees. Your estate will receive a tax credit.

To donate the proceeds of all or part of your Registered Retirement Savings Plans (RRSPs) and Registered Retirement Income Funds (RRIFs) to Mill Woods United Church, you simply need to change the beneficiary information on the plan document and advise the institution holding your retirement account of the change. Always consult a qualified investment advisor. There is no need to change your will.