Planned Giving and Canadian Charities

July 17, 2018

CRA letter on gifts from an estate and recent changes to rules

Here is a letter from CRA discussing when an official donation receipt can be issued for a gift from an estate and how the 2016 changes affect this.  Here is the text of the letter:

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July 17, 2018

CRA letter on private foundation receiving residue of alter ego trust and excess corporate holdings

There are certain rules in the Income Tax Act that only apply to private foundations and not charitable organizations and public foundations.  These rules are called the 'excess business holdings' regime or 'excess corporate holdings' regime.  They limit the amount of shares or interests a Canadian private foundation can have, or that the private foundation plus other relevant persons may have.   CRA in a recent letter discusses whether the excess business holdings rules apply when the private foundation will receive the shares as a residue of an alter ego trust. 

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June 24, 2018

UK guidance on bequest giving can be helpful for Canadian charities

The Institute of Legacy Management has published voluntary ethical guidelines for charities' legacy professionals, covering issues that can arise when charities receive or solicit a legacy or bequest, including: doubts about the source of the donor's income or the donor's character; the risks of unwelcome media interest; and communicating with hostile lay executors or families. You can find the guidance here.  The Charity Times has also written about the guidance, which you can find here. Although it is a UK guidance it is helpful for Canadian charities.   

 

May 25, 2018

Blumbergs’ Receipting Kit for Canadian registered charities - by Mark Blumberg

Here is our Blumbergs’ Receipting Kit for Canadian registered charities 2018.   If you wish to receive updates on the Receipting Kit you should join our Blumbergs email newsletter to receive regular updates on charity compliance issues affecting Canadian registered charities.  There is no cost and you can unsubscribe at any time. 

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May 11, 2018

Philanthropy and First Nations with Richard Bridge, charity lawyer

Here is a recent archived presentation Philanthropy and First Nations with Richard Bridge which explains the importance of philanthropy with Indigenous groups and how Bands and other organizations can become qualified donees and take advantage of philanthropic interest.   

Link:   https://attendee.gotowebinar.com/recording/5404821320772560652 

May 02, 2018

Finance Canada releases 2018 Report on Federal Tax Expenditures Concepts, Estimates and Evaluations

The Department of Finance has released the 2018 Report on Federal Tax Expenditures.  The document is over 300 pages and discusses the financial costs of certain Canadian tax measures including donation tax incentives.  These costs are referred to as "tax expenditures".   On page 287 there is an extensive discussion of the tax assistance for publicly listed securities or marketable securities under the heading "Evaluation of the Non-Taxation of Capital Gains on Donations of Publicly Listed Securities". Anyone interested in the topic of donating appreciable marketable security to charities will find the discussion interesting.

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January 27, 2018

CRA updates guidance P113 - Gifts and Income Tax 2017 to reflect recent changes

P113 - Gifts and Income Tax 2017 is the main CRA publication dealing with gifts and their income tax consequences for Canadian taxpayers.  The publication has been revised with some minor changes in 2017.  They reflect that the rules for donations from an estate are no longer proposed but are final.  There were also some some changes to the Ecological gifts programs. 

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November 30, 2017

US changes to tax code could mean big problems for US charities

The US House and Senate are looking at major changes to the tax code that could have a significant impact on US donors and whether they receive any tax incentives for their donations.  Now, 1 in 3 US donors may get a tax incentive when they donate to charity; with the proposed changes, only 1 in 20 US donors will receive a tax incentive for their donations.  A number of US charity umbrella groups have been lobbying hard to prevent certain changes.  We will know shortly whether the charity sector will be blindsided or if last minute amendments will occur.  There are lots of lessons here for Canada.

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October 28, 2017

CRA has some thoughts on advantages and gala dinners - fundraising costs and advantage are not same

Many Canadian charities conduct gala dinners although it seems fewer than in the past.   We recently spoke to CRA regarding the amounts that should be deducted for gala dinners as an advantage when issuing receipts.  CRA said that any costs to set up the event, eg. venue, flowers, decorations, etc. are considered to be fundraising costs and should be reflected as such on the T3010 but in terms of the amounts that need to be deducted from an official donation receipt, it would be the value of the meal, drinks, advantage etc. received by the donor – not necessarily the costs.

Essentially what would a donor would pay to have a dining experience at a similar venue. In terms of “nicer” venues, they said that while the venue cost isn’t necessarily deducted as an advantage, it is generally factored into the value received by the donor since dinner at a similar “nicer” venue will likely be higher, thus a higher advantage received.   


 

September 15, 2017

CRA letter on transfers of property by a corporation to its sole shareholder

CRA recently released a letter that discusses whether a transfer of property by a corporation to its shareholder that is a private foundation is a gift for purposes of section 38(a.1) of the Income Tax Act (Canada) such that the taxable capital gain from the transfer would be zero.

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September 01, 2017

CRA’s views on gifts of life insurance policies to qualified donees

The Canada Revenue Agency recently released its views on when the adjusted cost base of a life insurance policy may be used to determine the cost of a life insurance policy when a life insurance policy is gifted to a qualified donee. 

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July 31, 2017

CRA releases new videos on auctions as part of Gifting and Receipting video series

CRA has recently released two new videos as part of their Gifting and Receipting video series. These videos are as follows: Auctions: when you can issue donation receipts and Auctions: advantage and 80% rule.  

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April 27, 2017

Recent letters released by Canada Revenue Agency

We have provided two letters recently released by the Canada Revenue Agency. 

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April 02, 2017

Universities and Colleges fundraising in Canada - a great mechanism to fundraise effectively

Canada has a mechanism to recognize certain foreign universities for purposes of donations.  It is probably the most generous tax incentive system of any country in the world.   Essentially if you are a degree granting university outside of Canada and you have 2 Canadian students generally studying at your university/college then you can apply to get on a list maintained by the Canada Revenue Agency.   Once you are on the list you are considered to be a "qualified donee".  That means you can issue Canadian official donation receipts under the Income Tax Act  (Canada).  WIth such status a Canadian who donates to your prescibed foreign university obtains the same benefits - of between 40 - 70% as if they had donated to a Canadian university.

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March 30, 2017

Guidance for Professional Athletes considering Philanthropy in Canada - Part 2

Kate Robertson and Mark Blumberg recently prepared Part 2 of the article series, Guidance for Professional Athletes considering Philanthropy in Canada. This article provides suggestions and tips for professional athletes (and their trusted advisors) with respect to estabishing and operating a successful Canadian registered charity.

January 16, 2017

Guidance for Professional Athletes considering Philanthropy in Canada

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 releases new educational video series on ‘Gifting and Receipting’

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.  

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June 29, 2016

Canadian registered charities no longer required to register as a charity in Quebec

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.

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May 03, 2016

Top Fallacies about Private Foundations in Canada

Here is a recent article written by Mark Blumberg, Kate Robertson and Lynn Gluckman of Blumberg Segal LLP on the Top Fallacies about private foundations in Canada.  The article discusses incorrect misconceptions that many people have about private foundations.  This article was also published as a two-part series by the Hillborn Charity eNews on April 19th, 2016 and April 26, 2016.   

April 23, 2016

Top fallacies about private foundations in Canada – Part one

The Hillborn Charity eNews just published the first part of our article Top fallacies about private foundations in Canada.  It discusses numerous incorrect preconceptions that people have about private foundations.  

March 23, 2016

CAGP Advanced Canadian Gift Planning Course in Toronto

The CAGP will be offering an Advanced Canadian Gift Planning Course in Toronto from June 1-3, 2016.

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March 22, 2016

2016 Federal Budget and its impact on non-profits and charities

Today the new Liberal Government has delivered their first budget.  Here is our article 2016 Canadian Federal Budget - How will it affect the Canadian charitable sector?

February 13, 2016

CRA provides information on graduated rate estates and charitable donations

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.  

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January 19, 2016

Finance proposals to adjust deadline for donation by estate to charity from 3 years to 5 years

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.  

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November 23, 2015

CRA letter on gifting to a public foundation

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. 

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Do you require legal advice with respect to Canadian or Ontario non-profits or charities?

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Charity Lawyer Mark Blumberg

Mark Blumberg is a partner at the law firm of Blumberg Segal LLP in Toronto and works almost exclusively in the areas of non-profit and charity law.

mark@blumbergs.ca
416.361.1982
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