Samantha, 74, has invested in bonds most of her life. Her bond portfolio is now valued at $100,000 and she would like to make a significant donation to support programs for refugees overseas. However, she still requires some income from her investment.

Last year she received 5.75% interest on her bonds. By putting the bonds in a charitable remainder trust and negotiating a 5.3% per annum discount rate for the next 15 years (her life expectancy according to actuarial tables), she is eligible for a tax receipt of just under $50,000 to be used to reduce her taxes for that year. Any unused tax credits can be carried forward for the next five years.

Samantha will continue to receive interest from this investment (and this income will be taxable). However, the immediate tax credit will suit her financial needs, and most importantly, she has the satisfaction of making a meaningful gift to refugees right now. She will be able to enjoy watching her contribution make a difference in the lives of so many for years to come.