Glossary

Glossary

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Accountant: a professional who specializes in the practice of bookkeeping, drafting financial statements, even auditing an individual or a company. The accountant can be a technician or a professional who is a member of their professional corporation (C.A., C.G.A. C.M.A.).

Assets: Any property or ownership that has economic value. Assets can include property, antiques, artwork, publicly listed securities valuables, etc.

Beneficiary: a person or organization that receives a charitable bequest, death benefits from a life insurance policy or payments from a trust. A beneficiary can also be a citizen receiving payments from a specific program, such as Old Age Security Pension, Quebec Pension Plan or any other program.

Bequest/charitable bequest: a gift of property through a will to a particular beneficiary.

Charitable Gift: a voluntary transfer of property without consideration or with consideration that does not exceed 80% of the donated assets. For any gift made after December 20th 2002, the eligible amount of the gift is used to calculate the donor’s tax credit or deduction (1).

Charitable giving: the act of voluntarily giving a part of your assets to a charitable organization.

Charitable receipt: also called official donation receipt or tax receipt. A receipt given by a registered charity that is subject to particular requirements under the Income Tax Act. This receipt can be used for income tax purposes and benefits.

Community Organization: a not-for-profit organization is made up of people working towards a common goal to satisfy the need or needs of individuals or of the community.

Estate: all assets owned by a person or a group of people. Legally, this term is used to designate tangible assets, real (fixed – land, buildings) and personal (movable – art, stocks) property that can be transferred by inheritance (6).

Estate Plan: process of planning the transfer of the legacy before death, ensuring that the estate will be preserved and distributed according to the volitions of the deceased. The main objective of this plan is to make sure the designated beneficiaries receive the maximum from the bequeathed estate and pay the least tax.

Estate Planner: a professional who specializes in creating an estate plan. This professional works with the estate owner to maximize their goals, minimize the person or family’s estate taxes, and have adequate assets after death to continue their business, take care of their family, and pay major expenses such as their mortgage.

Financial Planner: a professional who specializes in helping people deal with personal finances through planning aimed at fulfilling one’s financial needs and meeting their objectives.

Insurance Broker: a representative of an insurance company. This professional provides advice on financial concerns related to any type of insurance. The broker is the intermediary between the insurer and the insurance company; this person sells life insurance policies.

Irrevocable trust: an estate comprised of assets donated from another estate for a particular use (art. 1260 C.c.Q.). It can be set up though a will, a law or a judgment (art. 1262 C.c.Q.), for personal, private or social purposes. The assets are managed by a trustee.

Legislation: In Canada, the Income Tax Act provides guidelines on the proper way to give so that individuals may claim donations on their final income tax return. The Canadian Tax Act is also applied. In Quebec, the taxation act is applied through Revenu Québec.

Life insurance policy: documenting of the conditions that govern the payments and contributions of an insurance company or trust.

Not-for-profit organization: an association, club, or society operating exclusively for social welfare, civic improvement, pleasure, recreation, or any other purpose except profit. A not-for-profit organization is not a registered charity and cannot issue an official tax receipt even though not-for-profit organizations are exempt from paying tax on their income.(5)

Notary: other than their role as a legal advisor, a notary is a public officer recognized by the State. This person has the power to authenticate received acts. A notarized act is one that is certified, by the court, attesting of its content, the exactitude of the date and signature without having to provide proof (3). This title does not exist outside Quebec.

Philanthropy: a philosophy or doctrine that places the human being as a priority. Concordant gestures include the act of donating money, goods, time or effort to support a charitable cause, usually over an extended period of time and in regard to a defined objective (7).

Philanthropy Consultant: a professional specializing in strategic planning and useful tactics regarding charitable efforts. This person may also act as an advisor for charities themselves.

Planned gift / planned giving / gift planning: a way of giving to a charity and planning a donation which serves the interests of the charity and suits the personal, financial, and tax situation of the donor. With a planned giving program, a registered charitable organization seeks substantial donations by identifying potential donors and helping them by providing information and advice. Planned giving includes charitable bequests, annuities, life insurance policies and residual interest, eligible securities and charitable remainder trusts (2).

Professional advisor: best defines CAGP-ACPDP™ members who work in charitable gift planning as advisors to donors and charities. These members commonly work in the fields of accounting, law, insurance, financial planning, etc.

Program: refers to the LEAVE A LEGACY™ awareness initiatives, either at the local or national level; local LEAVE A LEGACY™ programs are managed primarily by volunteers with the support of the National Office of the CAGP-ACPDP.

RoundTable: refers to local committees of the CAGP-ACPDP™. These RoundTables accept, observe and promote the CAGP-ACPDP™ Code of Ethics. RoundTables assist the CAGP-ACPDP™ in developing its activities locally and producing the necessary promotional material.

Registered charity: an organization, trust, or corporation that was established in Canada, operates in Canada and is registered under the Income Tax Act as a charitable organization, public foundation, or private foundation. A registered charity is operated for charitable purposes and must devote its resources to charitable activities (4).

Stock Broker: a licensed professional or firm who buys and sells shares, stocks, or investments.

Sustainability: to maintain productivity at the same pace or at an accelerated pace for a cause or a goal without causing harm to the greater society.

Tax Benefits: registered charities in Canada are governed by the Canada Revenue Agency under the Income Tax Act. For Quebec citizens, charitable donations are also subject to the laws of the Ministère du Revenu du Québec. These two authorities give you tax credits for donations made to charitable organizations, which reduces the taxes to pay. Tax credits are calculated as a percentage of the eligible amount of the donation you make. If charitable gifts are made by a corporation there will be a deduction.

Testament: Will / testament – the last legally binding document of an individual directing the disposition of their estate and assets effective at death.

1. 2. 4. 5. ARC : Agence du revenu Canada www.cra-arc.gc.ca/menu-fra.htm
3. Chambre des notaires du Québec www.cdnq.org
6. 8. 9. Thésaurus de l’activité gouvernementale (in French only) www.thesaurus.gouv.qc.ca
7. Wikipedia