Your Donation Options

Here are the most common methods to make a substantial charitable gift.

Cash donations. Tax receipts for donations that total over $200 provide a combined federal and provincial tax credit of at least 40% of the donation amount (varies by province).

Investments. When donating securities, including stocks, bonds and mutual funds, the donor receives a tax receipt for the investment’s fair market value. Neither the donor nor the charity pays tax on capital gains.

Donor-advised funds. Designed as a long-term program, donations are invested and grow on a tax-deferred basis. The donor periodically gives grants to charities of their choice.

Bequests in a will. It’s possible to state the donation as a specified amount, a percentage of the estate or the remaining assets after providing for other beneficiaries.

Registered plans. When a charity is the beneficiary of an RRSP or RRIF, the donation tax credit can offset the tax payable by the estate on the RRSP’s or RRIF’s assets. If a charity is named as the beneficiary of a Tax-Free Savings Account (TFSA), the tax credit can help offset taxes payable by the estate.

Life insurance. Donating the proceeds of a new or existing life insurance policy can provide tax relief either to the donor during their lifetime or to their estate.

Charitable gift annuities. One portion of the donor’s amount is a donation for which the donor receives a tax receipt, while another portion provides the donor with a tax-advantaged income stream for life.

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