Planned Giving and Canadian Charities
January 16, 2017
Kate Robertson and Mark Blumberg recently prepared an article, "Some thoughts on Professional Athletes and Philanthropy in Canada: Part 1" which provides helpful information and guidance for professional athletes and their trusted advisors who are exploring philanthropic options in Canada. Part 2 of this article series will provide suggestions and tips for professional athletes on operating a successful Canadian registered charity.
November 03, 2016
CRA recently released its first video as part of a new educational video series on 'Gifting and Receipting'. This series is meant to educate the public, donors, and those involved in the charitable sector on the type of donations that are tax-receiptable and the different CRA rules regarding receipting.
June 29, 2016
As a result of the 2016 Quebec Budget, Canadian registered charities are no longer required to complete a separate charitable registration in Quebec in order to be able to issue tax receipts to donors in Quebec.
March 23, 2016
The CAGP will be offering an Advanced Canadian Gift Planning Course in Toronto from June 1-3, 2016.
February 13, 2016
The CRA has provided some information on how estate donations will change in 2016. Essentially the tax benefits for bequests and certain designations may increase as there is added flexibility as which income can be offset by the estate's charitable donation.
January 19, 2016
The Department of Finance has released Legislative Proposals Relating to Income Taxation of Certain Trusts and Estates. There are a number of amendments to the Income Tax Act. The Conservative government had previously provided greater flexibility with bequest donations so that the donation could be made by the individual or the estate. However, there was a deadline of 36 months from the date of death. It has now been extended to 60 months or 5 years.
November 23, 2015
CRA recently released a letter which discusses whether a gift of a share of the capital stock of a corporation to a public foundation to which subsection 118.1(5) applies after 2015, would qualify as an 'excepted gift' as defined in subsection 118.1(19) of the Income Tax Act.
August 26, 2015
The Department of Finance in late July released for consultation purposes draft legislative proposals that will have an impact on charities. The 2 main changes are an "exemption from capital gains tax for certain dispositions involving private corporation shares or real estate where the cash proceeds are donated to a registered charity within 30 days" and "providing rules to enable registered charities to acquire or hold interests in limited partnerships in certain circumstances."
July 05, 2015
The CRA has posted guidance on the recent 2015 Federal Budget and specifically the provisions relating to donations involving private corporation shares or real estate and the ability of registered charities to invest in limited partnerships.
April 28, 2015
Properly issuing official donation receipts has been challenging for many registered charities. According to the CRA, 89% of registered charities that are audited are not correctly issuing official donation receipts. Issuing incorrect receipts can result in revocation or penalties. It is easier to do it right than fix problems later! Here is a new half-day program from Blumbergs entitled "Fundamentals of Receipting by Canadian Charities".
March 11, 2015
CRA recently released a letter which discusses whether a gift by will of marketable securities provided to a Foundation would be deemed to have been made immediately before the death of the donor. CRA concluded that the gift did constitute a gift by will made immediately before the death of the donor under subsection 118.1 (5) of the ITA. The letter appears to have been written before the 2014 budget, which will have an impact on the bequests are dealt with in estates where the testator died on or after January 1, 2016.
February 21, 2015
The British Columbia Supreme Court recently released a decision, Re Mulgrave School Foundation, which discusses charitable gifts that are made for a specific charitable purpose and whether it is possible to change that purpose. Unfortunately, in this case the donors and schools had restricted their gift to be an endowment for scholarships and they did not have in the agreement a power to amend the restrictions.
February 13, 2015
CRA recently released a letter with respect to spousal sharing of charitable gifts that was written to David Sherman, one of Canada's top tax lawyers. As a result of recent legislative amendments in Bill C-43 which received Royal Assent on December 16, 2014, CRA has changed their administrative practice with respect to spousal sharing of charitable gifts with respect to deaths occurring after 2015 (i.e. in 2016 or later). Bill C-43 included amendments affecting how will and certain designated gifts will be treated for tax purposes for gifts occurring after 2015 and according to CRA this necessitated the change. The legislative changes affect the taxation of gifts made by will - in some case they will provide greater flexibility but in other cases or situations they may deny certain tax benefits.
December 01, 2014
Mark Blumberg will be speaking on "Planned Giving and the Elderly Client" conference on January 23, 2015
November 26, 2014
The CBC has disclosed that CRA had provided them with a list of private information on taxpayers who had applied for certain tax benefits as a result of donating cultural property through the Cultural Property Export Review Board. Disclosure of confidential taxpayer information is a serious issue and CRA has released a statement apologizing for the laps and confirming that the CRA will contact each of the taxpayers who were affected. This disclosure appears to be accidental and a mistake on CRA's part.
September 01, 2014
Following up on the 2014 Budget, Finance has released draft tax legislation for consultation. The changes with respect to bequests to registered charities are from Budget 2014, and will allow some greater flexibility for claiming the charitable donations against either the estate or a trust. This bequest proposal has generally been welcomed. It will deal with some situations were there is a mismatch between the income a deceased person or their estate has and the amount of gift left to charity.
March 21, 2014
The CRA recently released a letter which discusses whether a taxpayer's estate was entitled to donation tax credits claimed for a charitable gift made by an individual in her secondary will. The use of a Primary and Secondary Will may be for a number of reasons, although typically in Ontario the assets that don't require probate are placed in a different will to those assets that do require probate. In this way some of the probate tax can be avoided. The letter discusses various issues such as whether the trustees had the discretion to make a gift to a Charity and the factors considered when determining whether a donation to a charity has been made by a taxpayer in their will.
February 10, 2014
Today Finance Minister Jim Flaherty introduced the Canadian Federal Budget 2014. The budget had a large number of provisions dealing with non-profits and charities. Here are some excerpts from the Federal Budget in one PDF document. Overall I was very pleased with the provisions of the budget dealing with charities.
January 27, 2014
The Globe and Mail recently had an article which discusses the concept of perpetual endowments as well as the use of donor advised funds and bequests. Read article >
July 04, 2013
In this article I discuss the importance of Canadian charities involving professional advisors in their planned giving efforts.
July 04, 2013
In this article I provide some suggestions to charities in Canada as to how they can easily start a planned giving program for their charity.
July 04, 2013
In this article I discuss different planned giving vehicles in Canada.
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