After taking care of your personal and family priorities, consider a legacy at Ottawa Public Library (OPL) through a gift in your will. Wills are central to estate planning. You can make a gift by will, known as a bequest, for a specific dollar amount, an item, or for a share or a percentage of your estate.

A bequest in a will is one of the most common and flexible ways to make a charitable gift. By including a gift to OPL in your will, you can leave a legacy while retaining full use of your assets during your lifetime. Upon your passing, OPL will issue a tax receipt for the amount of the bequest, which can be applied against up to 100 per cent of your final income tax return and, any excess can be carried back to the prior year, also up to 100 per cent of net income for that year, providing significant tax relief to your estate, as compared to the usual 75 per cent of net income limit for donations in other years.

Benefits of making a bequest

• You retain use of the asset during your lifetime
• You reduce taxes owed by your estate
• You can make a bequest revocable, with the ability to modify it if your financial circumstances change, or irrevocable for a fixed commitment

Example of making a bequest

Sophia, age 70, includes a $250,000 bequest to OPL in her will. When Sophia passes away, her estate receives a $250,000 charitable tax receipt, which her executor applies to offset her final tax return. Assuming a 45 per cent combined federal-provincial tax rate at death, this results in up to $112,500 in tax savings, helping preserve more of her estate for other beneficiaries while ensuring OPL receives a transformative gift that supports its mission.

Bequest wording to use (samples)

Unrestricted Gift:

“To pay to the Ottawa Public Library Board (Canadian charitable registration number BN # 861292886 RR 0001) ___% of the residue of my estate (or the sum of ____%). This gift is to be used for such purposes and designs as deemed appropriate by Ottawa Public Library.”

Specific Bequest:

“I give to the Ottawa Public Library Board (Canadian charitable registration number BN # 861292886 RR 0001), ___% of the residue of my estate (or the sum of ____%) to be used for [describe specific purpose or program]. If, in the judgment of the CEO, the purpose is no longer practical or desirable, the CEO may direct the funds to a similar purpose that reflects my original intentions.”

By making a bequest, you can support the causes closest to your heart, benefit your estate through significant tax savings, and create a legacy of generosity that lives on beyond your lifetime.

Donating publicly traded securities, such as stocks, bonds, or mutual funds, is one of the most tax-efficient ways to give in Canada. When you transfer these securities in kind to Ottawa Public Library (OPL), you pay no capital gains tax on any increase in their value. You also receive a charitable tax receipt for the full fair market value of the securities on the date of the donation, which you can use to offset taxes in the year of the gift (or carry-forward for up to five years).

Benefits of gifts of stocks and securities

• Reduce estate taxes and receive an immediate tax benefit
• Reduce capital gains tax
• Receive a charitable tax receipt for the fair market value of the donated security
• Benefit from a capital gain inclusion rate of zero when donating eligible securities directly
• Avoid capital gains triggered at death when your executor donates eligible securities, while still receiving a full charitable tax receipt under Graduated Rate Estate Rules

Example of how a gift of securities works

Susan owns shares of a Canadian company that she purchased years ago for $20,000. Today, the shares are worth $100,000. If she sold the shares, she would realize an $80,000 capital gain, half of which ($40,000) would be taxable, potentially creating a tax bill of $16,000 (assuming a 40 per cent marginal tax rate and a 50 per cent inclusion rate). Instead, Susan donates the shares directly to her favourite charity, OPL. She pays no capital gains tax and receives a $100,000 charitable tax receipt, providing a potential tax savings of up to $60,000 (assuming Susan is an Ontario resident). OPL receives the full value of the shares, maximizing her donation’s impact.

By donating securities, you avoid capital gains tax, maximize your tax savings, and increase the value of your gift. This is a powerful way to support the causes you care about.

How to make a gift of eligible securities

Contact us to receive the appropriate form and instructions. You may also donate securities online via CanadaHelps.

• Canadian Securities
• Canadian Mutual Funds
• U.S. Securities

Scotiabank iTrade account instructions:

City of Ottawa
Account Number: 5598960416
DTC: 5011
CUID: SCOT
Address: 40 King St. W, 5th Floor,
Toronto ON, M5H 1H1

You have planned for a bright future with your Registered Retirement Savings Plans (RRSPs) and Registered Retirement Income Funds (RRIFs), and you can include Ottawa Public Library (OPL) in those plans. OPL can be named as a direct beneficiary of RRSPs and RRIFs.

Benefits of planned gifts of RRSPs and RRIFs

• Reduce estate taxes when there is no qualifying beneficiary (e.g., spouse)
• Create a registered retirement fund gift at no cost
• Keep your gift private, as it is not part of your will
• Exclude the balance of your retirement fund from probate
• Generate a charitable tax receipt to offset taxes owing in the year of death, when the remaining funds in most RRSPs and RRIFs become fully taxable as income

If you find that you do not need the required annual withdrawal from your RRIF, you may consider donating this annual amount to OPL to offset your taxes.

How to arrange a gift of RRSPs and RRIFs to OPL

Fill out the beneficiary designation clause of your RRSPs and RRIFs, using the legal name, Ottawa Public Library Board, Charitable # 861292886 RR 0001.

Donating a life insurance policy is a thoughtful, cost-effective way to create a transformational gift for Ottawa Public Library (OPL) without significantly impacting your current cash flow. In Canada, you can name a registered charity, such as OPL, as the owner and beneficiary of a new or existing policy. When you do, your premiums become charitable donations and are eligible for tax receipts each year. When an existing policy is assigned to a registered charity, you are deemed to have disposed of the policy at the cash surrender value, and you are entitled to a donation receipt for the fair market value of the existing policy at the time of transfer. Alternatively, you can name a charity as the beneficiary only, providing a significant donation upon your death, with the value of the policy generating a tax credit for your estate.

Benefits of a gift of life insurance

• Reduce estate taxes
• Receive an immediate tax benefit
• Convert affordable annual premiums into a larger future gift
• Receive a charitable tax receipt
• Exclude life insurance proceeds from probate

Example of how a gift of life insurance works

Donating a life insurance policy is a powerful way to create a legacy gift that can far exceed what might otherwise be possible through cash donations. In Canada, you can donate either a whole life policy or a term life policy, each offering unique opportunities.

Example 1: Whole life insurance

Emma, age 55, owns a paid-up whole life insurance policy with a $250,000 death benefit that she no longer needs for family protection. She transfers ownership of the policy to her favourite place to be, OPL, and names it as the irrevocable beneficiary. Because OPL now owns the policy, Emma receives a charitable tax receipt for the fair market value of the policy at the time of transfer. A qualified appraiser determines the policy’s fair market value to be $100,000. Emma uses this tax receipt to reduce her taxes in the current year and can carry forward any unused amount for up to five years. When Emma passes away, OPL receives the $250,000 death benefit, creating a major legacy gift at no additional cost to her estate.

Example 2: Term life insurance

Liam, age 45, purchases a $500,000 term life insurance policy to benefit OPL, dedicated to children’s education. He names OPL as both owner and beneficiary of the policy. His annual premium is $900, and because the charity owns the policy, Liam receives a $900 charitable tax receipt each year, saving him at least about $321 in taxes annually (assuming Liam is an Ontario resident). If Liam passes away during the term, OPL receives the $500,000 death benefit tax-free, creating a substantial impact for a relatively small annual outlay.

Three ways to donate life insurance

• Donate an existing policy: receive a charitable tax receipt for the fair market value of the policy at the time of transfer in most circumstances, and for any premiums paid after the donation date.
• Donate a new policy: receive a charitable tax receipt for any premiums paid after the donation date.
• Assign OPL as the beneficiary of your individual or workplace insurance policy: your estate receives a charitable tax receipt.

Give generously to Ottawa Public Library (OPL) and secure a dependable income for yourself with a Charitable Gift Annuity (CGA). When you contribute a lump sum (typically $10,000 or more) to a registered Canadian charity, such as OPL, part of the gift, usually 20-35 per cent, becomes an immediate charitable donation, giving you a tax receipt you can use over up to five years. The remainder is used to purchase a lifetime annuity from either the charity itself or a life insurance provider. You (and optionally your spouse) then receive fixed annual payments, often at rates much higher than comparable Guaranteed Investment Certificates (GICs), and a large portion of those payments may be tax free. When you (and your spouse) pass away, the remaining funds support OPL’s mission.

Benefits of a CGA

• Receive an immediate tax benefit
• Receive a guaranteed income for life
• Benefit from annuity rates that are often much higher than the return on guaranteed income investments
• Receive annuity payments that may be partially or fully tax-free, depending on your age
• Receive a charitable tax receipt for the gift portion of the payment

Example of a CGA

Jane, age 75, donates $100,000 to OPL under a reinsured annuity plan. Based on her age, she receives a 6.6 per cent annual payout, which is $6,600 per year. OPL uses about $65,000 to purchase her annuity and issues a charitable receipt for the remaining $35,000, which she can apply against her taxable income, saving her significant tax dollars. Each year, most of the $6,600 is a tax-free return of capital, maximizing after-tax income. When Jane passes away, the remaining principal supports the charity she cares about, OPL, accomplishing her philanthropic goals.

How to make a gift of a CGA

• Contribute a lump sum to OPL for a guaranteed lifetime annual annuity payment.
• OPL will use a portion of the total contribution to purchase the annuity from a licensed insurance company.
• OPL retains the balance as an immediate donation, for which you receive a charitable tax receipt.