Deferred gifts


Once the well-being of your family and loved ones is ensured, you can choose to make a significant donation to Mouvement Action-Découverte by stating your intentions in your will. In the event of major changes in your life, you can always modify your will to reflect your new situation.

A bequest is one of the easiest ways to make a planned donation.

Various options are available:

  • specific bequest (a specific amount or a specified asset);
  • residuary bequest (the total or a percentage of the amount remaining after debts and specific bequests have been paid);
  • universal bequest (the entire estate, sometimes divided among several beneficiaries);

All of these means entitle the donor to a tax receipt, which may be used at the time of the donor’s final income tax return. The tax advantages of a testamentary donation can considerably reduce the estate taxes paid.

Donation of the proceeds of a life insurance contract

There are various ways to plan a donation through life insurance. The terms and conditions of a donation in the form of life insurance will depend on your objectives, your age and your family situation:

-Transfer of an existing policy: If you no longer require the coverage provided by your life insurance policy, you can transfer it to Mouvement Action-Découverte, while continuing to pay the premiums, where applicable.

-Purchase of a new policy: If you wish to make a significant donation even though your current resources are modest, you can purchase a life insurance policy, which you can then transfer to Mouvement Action-Découverte. In this case, it is always preferable to pay the premiums over a limited term, for example, over a period of three, five, seven or 10 years. Each premium paid entitles the policyholder to a tax receipt for an amount equivalent to the premium in question.

Mouvement Action-Découverte may be designated as the beneficiary of a life insurance policy, in whole or in part.

Donation in the form of an annuity

A charitable life annuity consists of a donation of cash or other assets to a charitable organization in exchange for income guaranteed for life or for a determined period. Given that Mouvement Action-Découverte is not authorized to issue an annuity, the donor, with Mouvement Action-Découverte’s assistance, will contract an annuity from a life insurance company and designate the donor as its primary beneficiary. As such, the insurance company pays an annuity to the donor until the end of his/her life. When the donor passes away, the residual value of the annuity is remitted to the organization designated as the second beneficiary.

Donation through a charitable remainder trust

A charitable remainder trust is a gift of residual interest. The donor (the “trustor”) transfers an asset to a trustee, who serves as its holder and manager. The asset’s net revenue is remitted to the donor or to a designated beneficiary, or to both. When the trust is terminated (upon the death of the beneficiary or beneficiaries, or after a predetermined period), the remaining funds are remitted to Mouvement Action-Découverte. If the trust is irrevocable, the donor is entitled to a charitable donations receipt equivalent to the current value of the residual interest on the trust termination date.

Source: Unicef Canada