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Planned Giving

We are convinced the Lord wants Providence to thrive. We also recognize our responsibility in this vision. We are excited about our plans to invest in our people, our programs and our places; to inspire a new generation of alumni and friends to join in empowering Providence to prepare people to live as difference makers in the church and the world.

Planned Gifts are a way for donors to leave a legacy for generations to come by contributing financially through gifts-in-kind, wills and bequests, charitable trusts, gifts of shares, gifts of life insurance and pension assets, gifts of RRSPs, RRIFs, and matching gifts. Legacy gifts help secure the future of Providence.

Gift Management

Providence is a member of the Canadian Council of Christian Charities, meaning we are certified and approved by the independent council as a trustworthy organization. Our goal is to ensure that your contributions and gifts are properly managed and applied as you envisioned. It is our promise that the spirit and intent of your gift will support Providence students for generations to come. 


Plan With Us

Our Development Team would be happy to connect with you and help you plan your gift to Providence. We can discuss tax receipts, anonymous donations, specific planned giving options, setting up scholarship funds, how to complete your donation or answer any questions you may have. Please contact our Development Team below.

Support Providence while achieving personal financial and philanthropic goals! You can even give to specific areas that match your interests.

You can create your own scholarship fund to support our students! You can name the award, choose the qualifications for acceptance and decide how it will be funded. To learn more, contact our Development Team. 

Please contact us if you are a planned gift consultant or financial advisor looking to learn more about Providence. Enhance your donor education with information about the types of funds and gifting options available to your clients.  

Impact 2020

Future Generations

I am excited to see how the school is evolving and growing as there is a real need for Christian education in Canada. My husband and I feel strongly that we want to continue to support the school that gave us our own strong foundation and have included it in our estate planning.

~Esther Dyck (Former Providence Board member, Alumna '82)

A gift by will to Providence enables individuals and couples to make a significant gift that they may not have been able to make during their lifetime. Bequests to Providence, whether unrestricted or designated, are eligible for tax receipts. When publicly-listed investments, such as stocks and mutual funds, are gifted to a registered charity and transferred in kind, no capital gain is attributed to the donor. If the shares are sold first, then capital gain may be incurred which increases the taxable income of the donor and reduces the available donation tax credit.


Henry and Pamela have lived in Manitoba their entire lives. Throughout their lives they were strong supporters of Providence University College and had left a residual (e.g. what remained after all of the beneficiaries had received their bequests) provision in their will to gift 15% of their estate to Providence. Assume Henry has passed away some time ago and left everything to Pamela in his will. Pamela passed away in 2016. In 2017, the residue was finally calculated to be $100,000 in investments (e.g. public stocks, mutual funds). After consulting with Providence to determine the best way to make a gift, Pamela's Executor transferred the $15,000 in shares to Providence (in tact without selling them first), sold the remainder and gave the cash to the other residual beneficiaries. Upon receipt of the investments, Providence issued a tax receipt for $15,000 that saved Pamela $7,500 in taxes.

Many people set up life insurance policies for themselves or combined with their spouse, however, sometimes the original need for these policies is no longer relevant. A young couple may take out a life insurance policy to protect their children in the event that something happens to them and/or should they be unable to provide for them until the age of maturity. Once the children are grown and self-sufficient, however, the need for that life insurance policy is no longer required. Such policies can have enormous value to the donor if gifted to Providence.


Bill and Mary have a $350,000 term to 100 insurance policy that will pay the death benefit should either of them passed away while the policy is in force (e.g. first to die). The purpose of the policy was to ensure that the survivor would have a mortgage free home and sufficient capital in the event that something happened to Bill or Mary before their children were grown. Now that both children have left the home are married and living abroad, Bill and Mary now aged 75 and 73 respectively realize that the ongoing $2,500 annual premiums for this policy may no longer be a good use of their funds. They no longer felt they needed the insurance coverage and were considering letting the policy lapse. Bill and Mary have always supported Providence. After meeting with Providence staff, they decided to donate their life insurance policy to Providence in exchange for a tax receipt for $175,000. This value was determined using an actuary. Furthermore, once told that each premium paid would be a gift to Providence and eligible for a tax receipt, they pledged to continue paying the $2,500 annual premium for as long as they could. At the end of the day, the donation of the existing life insurance policy saved them $81,200 in taxes, and the ongoing annual donations of $2,500 save them $1,160 per year. When either Bill or Mary passed away, Providence will receive $350,000 to use for its charitable work.

Publicly Traded Securities are stocks, bonds, warrants, or rights listed on a prescribed stock exchange (e.g. TSX), mutual funds or segregated funds held outside of a registered plan such as a RRSP, TFSA, or RRIF. If the owner of the securities were to sell them, even though securities are worth more than when they are purchased, the investor would have a capital gain - 50% of which would be reported as taxable income to the investor. This is commonly referred to as a Capital Gains Tax.

If that same investor were to donate that security in kind (without selling first*) to Providence, they would receive a tax receipt for the fair market value of the property when gifted, and yet would have no capital gain to add to his or her income. Why? Publicly Traded Securities donated in this way are not subject to the 50% included in income rule (a.k.a. 50% inclusion rate).

*NOTE: if the investor were to sell the securities and donate the cash to Providence or any other registered charity, they would be subject to the 50% income inclusion mentioned above.


Assume John and Edith have $50,000 in mutual funds, held in a non-registered account, that were purchased for $10,000. They are considering a gift of $25,000 to Providence. If John and Edith use their bank account funds, they receive a tax receipt for $25,000 which would save them $11,600 in taxes and the cost of their donation would be $25,000. If, however, they were to use their Publicly Traded Securities, the tax receipt would be $25,000 and would still save them $11,600 in taxes but the cost of the donation would only be $10,000.

Fixed Value Preferred Shares are often used in tax planning for people that own their own business. Typically this type of share is issued to the company’s founders (e.g. father and mother) and new shares are issued to the children who are now running the business. One of the appealing features of Fixed Value Preferred Shares is that their value remains constant. In other words, there is no more capital gain potential should the company continue growing. Mom and dad have therefore “frozen” the value of their investment in the business and all future growth is be attributed to the children. If and when the preferred shareholders need capital, depending on the structure of the preferred share, they can redeem the shares backed the company for face value.


Assume Frank and Helen had already exercised a tax freeze for their successful business and each own 1,000 Fixed Value Preferred Shares with a face value of $1,000 per share ($2 million in total value), a cost of $100 per share, and a Paid Up Capital (PUC) of $10 per share. As long time supporters of Providence, Frank and Helen want to leave a $200,000 gift to the capital campaign. Coincidentally, their financial advisor has been pressuring them to restructure their investment portfolio to better manage risk and meet their retirement objectives. Frank and Helen’s portfolio has done well and there will be capital gains income incurred during the repositioning.

If Frank and Helen were to redeem 200 preferred shares back to the business to generate the $200,000 for the donation, the taxable consequences would be that Frank and Helen together would incur a deemed dividend of $198,000 ($200,000 - $2,000 PUC). Assume this dividend is taxed at 31%, the result would be $61,380 in taxation. Frank and Helen's net after-tax position would be $138,620 ($200,000 - $61,380). They would either have to redeem more shares or have sufficient cash on hand to pay the tax owing on the transaction. On the bright side, Frank and Helen would also have a capital loss of $18,000 to offset capital gains that might be generated from their portfolio restructuring.

How would things change if they donated the preferred shares directly to Providence? Given the Providence is not related to the business, the donation would be treated as a capital gain subject to 17% tax rates and not as a deemed dividend taxed at 31%. Frank and Helen would receive a $200,000 tax receipt that generates a $92,800 donation tax credit ($200,000 X 46.4%) to eliminate the $30,600 in tax generated by the $180,000 capital gain (($200,000 - $20,000 cost) X 17% tax rate))). Frank and Helen would have an additional $62,200 donation tax credit to apply against other capital gains taxes generated by the portfolio restructuring.

Providence in turn redeems the shares back to the business for $200,000. The deemed dividend and capital loss factors mentioned above are irrelevant because Providence is tax exempt.

Gifts from a TFSA, RRSP, or RRIF are essentially a donation of cash. In the case of the RRSP and RRIF, the amount gifted from the account is 100% income to the donor. Furthermore, there is a tax of up to 30% of the amount gifted assessed by the institution that holds the RRSP or RRIF. This tax is referred to as a withholding tax and it is removed from the amount pulled from the Registered Funds so the person receives the amount requested net of the tax.


If Rudy and Jane wanted to donate $100,000 from an RRSP, they would receive $70,000 in actual cash as 30% would be withheld by the institution and forwarded to CRA.

A way to avoid withholding tax using the T1213 form from CRA is by submitting this to the CRA, and, if approved, the withholding tax is waived. In the above example, that would mean the full $100,000 would be gifted to Providence.

It is important to note that withholding tax only applies to withdrawals from Register Funds during life. At death, Providence can be named a beneficiary of the Registered Fund and the gift would flow directly to Providence and still be able to be claimed by the deceased on their final tax return - just as if it were a bequest.

A gift from a TFSA is different because there is no withholding tax. Rudy and Jane can withdraw whatever amount they wish from the TFSA, and then write a cheque to Providence for the gift. Providence can also be named beneficiary of the TFSA, so at death, the transfer would occur automatically as if made via the will and be able to be claimed on the deceased’s final tax returns as per normal.