Charitable Giving And Philanthropy

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There are several ways in which you can leave a legacy to your favorite charities or foundations. Insurance offers a tax-conscious way to support your charities of choice while directing more funds to the causes that you care about.

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Consider the unique gifting opportunity that is available to Canadians and donate appreciated shares of publicly traded securities instead of cash. Yet if your shares are sitting at a loss, you will get the benefit of a tax loss deduction upon selling.

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Together, let’s review the benefits of gifting appreciated shares below.  Assumptions::

Bought in 2005  -  1,000 shares of a stock XYZ at $10.00 per share. Price today is $20.

Your capital gain is approximately C$10,000 (if you sell).

Your tax bracket is 49.5%

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By gifting appreciated investments you will eliminate the taxes you are obliged to pay on the capital gain upon sale. 

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Therefore, when you donate the appreciated investment to a registered charity of your choice, the income inclusion rate is 0% since you do not have to include any capital gains. Had you sold the shares you would have to include 50% of the capital gains in your income

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Donation credits can be claimed  for donations representing upto 75% of net income in the year of donation or they can be carried forward up to 5 years and used as a combination depending on your financial scenario.   

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Call us today to open an Individual Philanthropic Account that allows you to manage your donations to the different charities of your choice.

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