Gifted Insurance for Charities

Roundtable ForumMay 24, 2018

Business Succession & Wealth Transfer Strategies

Insurance Strategies for Business Owners and Professionals

v Boutique financial services firm based in Calgary and Edmonton.

v Protecting and transitioning personal and corporate wealth for 30 years.

v “Give For Generations” wealth planning platform for charitable giving.

v Supporter of FH Canada to achieve community sustainability in Burundi.

Mike Deboski (left drummer) visiting a school project in Mufumya, Burundi.

“People are generally unprepared to give or inherit wealth.”

Fewer than 26% of benefactors have a complete gifting strategy in place.

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A Better Way of Legacy GivingOur Proprietary ProcessG EVI

CREATING CERTAINTY IN GIVING

G 1 GAIN UNDERSTANDING

E 4 EXECUTE DECISIONS

I 2 IDENTIFY STRATEGIES

V 3 VISUALIZE IMPACT

!

2

Accomplished

Benefactor

Existing

Insurance

Policy

Step 1FMV Appraisal

by 3rd Party

Charitable Tax Receipts

(FMV + Premiums)

Donor

involvement

opportunity

Step 2Donate Policy & Fund Premiums

Registered Charity

Example

(Benefactor image source: https://orig00.deviantart.net/3f3c/f/2014/019/3/f/walter_chipwitther_by_gloriafelix-d72wyg6.png)

Advantages:ü Benefactor realizes tax savings now.

ü Charity books a substantial asset now.

ü Monetization by the charity with cash surrender value or death benefit.

3

Existing Insurance Gifting Structure

Insurance Advisory Services

Endowment Process Structuring

Registered Charity Management

Enabling Infrastructure

Accomplished Benefactor

Donorinvolvement opportunity

(Benefactor image source: https://orig00.deviantart.net/3f3c/f/2014/019/3/f/walter_chipwitther_by_gloriafelix-d72wyg6.png)

Charitable Tax Receipts

(Annual Payments)

Registered CharityExample

50% ofAnnual DonationPlus all Fund ROI& Payouts

NewDonated

InsurancePolicy

50% ofAnnualDonation

FundingAgreement

Multi-Year Annual

Donations

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Advantages:ü Benefactor cost is 51% after tax. *ü Charity receives long-term income.ü $50 K x 10 years = $250.5 K net cost

and +$250 K to charity plus $700 Kpotential insurance payout. *

ü Each net dollar creates 3.8x value. * * Benefactor assumed to be an Alberta resident age 65.

New Insurance Gifting Structure

DonorAdvised

Fund

Advisor

Payout

Other Gifting Structures

Accomplished Benefactor

Donorinvolvement opportunity

(Benefactor image source: https://orig00.deviantart.net/3f3c/f/2014/019/3/f/walter_chipwitther_by_gloriafelix-d72wyg6.png)

Advantages:ü Benefactor realizes tax savings now.ü Charity realizes a tangible asset.ü Valuation risk issues are managed.ü Serves estate planning objectives.

QualifiedPrivateAssets

Private Company

Shares

PublicCompany

Shares

Fair MarketValuation

Registered CharityExample

Charitable Tax Receipts

(FMV)

DonationAgreement

5

Advisor

Proposed Action

v Much of the future wealth transfer will be eroded unnecessarily.v Your high net worth donors want to include you in their legacy.v You will have to help them get there.

v Deboski educational workshop for interested charities and donors.

v Free initial consultation meeting with your private individual donors.v Conversations and planning will result in a win-win outcome.

“Over the next decade an estimated $750 billion will be transferred from onegeneration to the next.”

Opportunityto Structure

Value Accretionfor Benefactors

and Charities

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End of Presentation

www.giveforgenerations.comryan@deboski.commike@deboski.com

Business Succession & Wealth Transfer Strategies

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