Future-minded
charitable giving.
A new way of making a difference to The Alliance Canada.
Watch this video to learn how the Alliance Charitable Foundation (ACF) offers a unique method to give charitably to The Alliance Canada (C&MA) designated to the Global Advance Fund.
The ACF will share the growth of its market-based fund with its donors by offering an annuity payout for a fixed term. Since the pooled ACF fund is subject to market fluctuations, donors will also purchase term life insurance for the amount of their donation and name the ACF as the beneficiary. This combination of life insurance with an annuity creates an extremely reliable income stream for both donors and The Alliance Canada. The ACF Board Member, Anders Bygden, is always available to answer any questions you have.
A competitive advantage
The ACF guarantees future income. It is possible to generate more income by investing on your own, but there is a chance that you might deplete your nest egg too soon. A healthy, 65-year-old, non-smoking man has a greater than 50% chance of living beyond age 85. Your own investing might earn 5% per year meaning there’s a better than 50% chance of outliving those investments.
• The ACF has a very low risk exposure since its annuity stipend is underwritten by an insurance company.
• The ACF is likely to pay a higher stipend than 5-year Guaranteed Investment Certificates (GICs).
An insured annuity
The ACF combines two individual products: an annuity contract and a life insurance policy. An annuity usually provides a much higher level of income than other investments because it combines your original capital with interest.
However, there is no more capital for your family to donate when you pass away. By using a portion of each annuity payment to pay premiums on an insurance policy, you can ensure that an amount equal to your original donation benefits the pooled funds of the ACF when you die.
The ACF benefits donors by offering both an immediate tax credit and a modest interest growth return of approximately 1.5x the 5-year CIDC-insured GIC rate. Tax advantages translate into increased income. Also, while the stipend portion is taxable, the premium on the life insurance is tax deductible, which reduces the total tax burden. In comparison, any income from a GIC, whether it is received or reinvested, is taxable.
The ACF can also simplify the transfer of your estate. Insurance proceeds are issued directly to the ACF as beneficiary, without cost or delay, therefore avoiding a lengthy probate process. Ordinary investments can lead to additional costs because they form a part of your estate and must go through the entire probate process before they are distributed. This can cause delays in allocating your money according to the donor’s wishes.
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FAQs
Who is this for?
Anyone who wishes to see the growth of ministry of The Alliance Canada can participate. The purpose of the foundation is to create sustained funding for the C&MA by distributing funds quarterly from the pooled investment fund.
How is The ACF different than other funds?
The Alliance Charitable Foundation (ACF) is a new charitable gift fund. The ACF will accept donations and share the growth of the pooled fund by distributing a taxable stipend from the growth of the fund. A donor can make larger gifts and receive a larger tax credit now while knowing the stipend helps to offset expenses for the rest of the donor’s life. Donors can be confident that their aspirational gift will continue to support our Lord’s great commission for many years to come.
Find out more.
ContactUs@theACF.ca
(416) 674-7878 ext. 355
2580 Matheson Blvd. E. Suite 101
Mississauga ON L4W 4J1
Canada
GET YOUR QUESTIONS ANSWERED
If you have further questions about the Alliance Charitable Foundation or would like to schedule a consultation, please contact Anders Bygden, ACF Board Chair, using the form below.