Thanksgiving is a time for expressing gratitude. If yours extends to a cause you care about, your generosity doesn’t have to be limited by the balance in your chequing account. Have you considered….

An in-kind donation of appreciated securities.These gifts can:

• Eliminate the capital gains tax you’d owe if you sold the securities and donated the proceeds
• Produce a charitable tax receipt for the fair market value of the donated securities
• Help you trim an over-concentrated position while also minimizing your taxes

A donation of a life insurance policy. These gifts can:

• Let you to make a future gift that is many times larger than you could give in cash today.  By naming a charity as the beneficiary of the policy, the charity of your choice would receive the death benefit on your policy
• Earn you a charitable tax receipt for the premiums you continue to pay if you make the charity the owner and irrevocable beneficiary of your policy. In some cases, you could also receive a charitable tax receipt for the value of the policy as determined by an actuary

A charitable remainder trust. This structure is usually suited for larger gifts and can:

• Produce a charitable tax receipt for the present value of the charity’s remainder interest when the trust is settled while you continue to collect the investment income

Flow-through shares. These gifts may be suitable for some donors in higher tax brackets and can:

• Provide an immediate tax deduction (owing to the exploration expenses attributable to you) when you invest in the shares and‍
• Produce a charitable tax receipt for the fair market value of the shares when they are donated

An in kind donation of appreciated securities held in your corporation. These gifts can:

• Eliminate the income tax on capital gains inside the corporation
• Generate a tax deduction against corporate income instead of a tax credit against yours
• Result in a credit to your corporation’s capital dividend account which may then be distributable to you tax-free

The mechanics of your gift deserve the same care as the intention.

To learn how financial planning and portfolio management can work together to amplify your impact, contact us at info@mvpwealth.ca.