The BEST Foundation
(Building Educational Success Together)
Introduction
Mission School District's BEST Foundation is a charitable organization which provides the community of Mission with the opportunity to fund local public school education priorities.
The Provincial Government provides funding for the district's core education programs and services. However, the district requires supplementary funding to pay for other programs and services that are important to our communities.
Individual schools also have foundation accounts that allow them to raise money for school priorities.
As well, individual donors may direct their gifts to schools, programs and projects of their choice (subject to Canada Customs and Revenue Agency regulations).
There are many ways to give to our children. The simplest and most popular gift is a cash donation. You can also give gifts in-kind like real estate and listed securities, or you can make a bequest to the foundation in your will.
There are even gifts that allow you to transfer property to a trustee (not a school trustee) and retain the right to the income from the trust. Properly structured, a timely planned gift can maximize income for the donor, guarantee the intended benefit to the BEST Foundation, and minimize later probate fees and taxes payable by the estate.
A brief description of the most common planned giving options are outlined below. More detailed information is available from the foundation upon request. However, this information is not a substitute for proper legal and financial advice. Each situation is different, and we recommend that you consult your financial and legal advisors to determine which approach is best for you.
How to Make a Donation
If you are interested in making a donation to a school or a district program, please contact the Assistant Secretary-Treasurer. School principals also have copies of the necessary forms and information. Donation forms can also be downloaded from this website by clicking here. If you are a school district employee, you may donate to the foundation through the district's payroll deduction plan. Contact the payroll department at the District Administration Office or a school principal to obtain the appropriate form.
Outright Gifts
An outright donation of cash is the most common type of gift. The BEST Foundation will receive a gift of any size. However, a gift must be at least $25 before a receipt for income tax purposes will be issued.
The Foundation will also receive gifts of appreciated property, including real estate, listed securities, and other types of properties. These gifts are subject to a capital gains tax. For example, when you make an outright gift of real estate, you will be taxed on 75 percent of the capital gain; but this will be offset fully by the tax credit from your donation. You will be taxed on only 37.5 percent of the capital gain on gifts of listed securities or mutual funds.
You may also donate certified cultural property to the foundation. The Canadian Government gives special tax advantage to certain types of property to preserve Canada's cultural treasures and to keep them in the country. You do not have to pay capital gains tax on this type of gift, and you may claim 100 percent of the gift in a given year.
Deferred Gifts
A gift that is planned now but does not become available to the BEST Foundation until a future time is known as a deferred gift. Some differed gifts offer a current tax benefit, while the tax benefit for others is not available until the gift is received.
The most common type of deferred gift is a charitable bequest which provides a gift to the BEST Foundation in your will. A bequest can be as simple as a sentence or two in your will, or a codicil appended to your present will. Your bequest may specify a certain sum of money ("I give to the BEST Foundation the sum of $... to be used for..."). You may also give a particular asset ("my shares of XYZ stock...") or a portion of the residue of your estate after the bequests have been paid ("50% of the rest, residue and remainder of my estate...").
Because a bequest is revocable, it provides no current income tax credit. However, your estate will be entitled to a donation receipt for the full value of the bequest which can reduce significantly the tax payable with your final income tax return.
A gift of life insurance can provide a significant future gift to the BEST Foundation at a modest present cost to you. You may make such a gift with either an existing policy or a new one. You may give the death benefit of an entire policy simply by naming the BEST Foundation as the beneficiary. To receive a current tax benefit, however, you must also transfer ownership of the policy to the Foundation, which entitles you to a donation receipt for the cash value of the policy. When you make the Foundation the owner and beneficiary of the policy, you receive a donation receipt for every premium you subsequently pay. At your death, the Foundation will receive the proceeds.
The charitable remainder trust is a deferred giving arrangement under which you irrevocably transfer property (cash, securities or real estate) to a trustee. You retain the right to the income from the trust, either for life or a specified number of years. At the end of that time, whatever remains in the trust becomes your gift to the BEST Foundation to be used as you have specified. When you establish a trust (not a school trustee), you receive a charitable donation receipt for the value of the remainder interest. If you contribute appreciated property, you avoid tax on a portion of the capital gain. In any case, you have the security of a reliable income from assets professionally managed on your behalf.
Another type of gift that provides an income for the donor is a gift annuity. A portion of your contribution is used to purchase an annuity from a licensed insurance company and the balance becomes a gift to the BEST Foundation. The annuity rates depend upon your age and are normally higher than the current GIC interest. Moreover, a significant portion of your annuity payment (100%) in some cases will be tax free.
The gift of residual interest provides a very special benefit to the donor. You may donate your residence to the BEST Foundation, but retain the right to occupy it for the duration of your life; or, you may give a valued work of art and continue to enjoy it in your home during your lifetime. In each case, you will receive a donation receipt for the present value of the future or "residual" interest you have given to the Foundation.
Endowment Funds
Donors have the option of directing their gifts into an endowment fund which invests the gift and spends only the earnings. A gift must be at least $5,000 before a "named" endowment can be established. A "named" endowment bears a name chosen by the donor.