Charitable Giving And Philanthropy

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.

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.

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%

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

   

 

 

 

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

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.   

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

Please note that only Echelon Wealth Partners is a member of CIPF and regulated by IIROC; *Chevron Wealth Preservation is not regulated by IIROC nor is it protected under the CIPF

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