AFP Canada Supports British Columbia Position on Charitable Donations of Life Insurance
(Ottawa, Ontario) The Association of Fundraising Professionals (AFP) Canada, the largest community of fundraising professionals in the country, supports the British Columbia Financial Services Authority’s (BCFSA) position on charitable donations of life insurance in the province.
Previously, charities were concerned that the provincial government was interpreting Section 152 of the Insurance Act (Act) to limit certain activities related to the charitable donation of life insurance policies in British Columbia.
However, on May 1, the BCFSA issued a bulletin clarifying the interpretation and application of section 152 of the Act as it pertains to charitable donations of life insurance in BC. The bulletin stated that when a donation of life insurance is made by an insured directly to a charitable organization, it is not prohibited provided that the donor uses one of the following methods:
- Takes out a new policy in the name of a charity and receives a tax receipt for the premiums the donor pays;
- Names the charity as the beneficiary of an existing policy, the charity receives the benefits at time of death, and the estate receives a tax receipt; and
- Transfers ownership of an existing policy to the charity and receive a tax receipt for the cash value of the policy.
“This is great news for fundraisers who work with donors in BC,” said Paula Attfield, chair of AFP Canada. “We are very pleased with the BCFSA’s position on gifts of life insurance and couldn’t be happier to have this clarification at a time when donations are needed more than ever in our communities. The coronavirus has had a big impact on the charitable sector, with many charities seeing a significant drop in donations and fundraising. Knowing that gifts of life insurance are acceptable provides fundraisers and donors the confidence they need to generate funding for those in need in their communities.”
To learn read the BCFSA Information Bulletin go to https://www.bcfsa.ca/.
AFP Canada, formed in 2017, represents more than 3,700 fundraisers in 21 chapters across the country working to support causes and missions that help Canadians from coast to coast. The organization serves as the bilingual voice for the fundraising profession in Canada and is part of the larger AFP Global network, the largest community of fundraisers in the world. For more information, go to https://afpglobal.org/afp-canada.