When a donor makes a gift of cash or property to a local community foundation, every dollar goes to work the moment it is given, providing vital current support to local programs and/or building endowment funds to provide support for the future.
A gift of cash gives a donor the satisfaction of seeing their gift at work today and knowing that lives are being touched right now because they cared.
- Cheques or Money Orders
- Payments on Credit Card
- Pre-Authorized Contributions (PAC), usually paid monthly
Benefits to the Donor
- Donation receipt for the full amount of gift
- Straightforward, easy-to-understand transactions
- Significant immediate tax benefits
- Satisfaction of seeing the gift at work immediately
Most Appropriate for
- Everyone (any age) who can afford to give up some principal and the income it would otherwise earn
Ms. Smith has net income of $150,000 and is planning on making a $10,000 gift.
|Net income||$ 150,000|
|Donation tax credit||– 4,500|
|Net tax due||63,000|
|After-tax cost of gift||5,500|
For illustration purposes a combined tax rate of 45% was used. Please note that combined tax rates vary across the provinces. 2015 tax table.
- First Time Donor’s Super-Tax Credit (2013)
- CRA charitable donation tax credit calculator
- In 2017 new tax rules of private securities and real estate will involve donating cash proceeds
- Cash proceeds can also be used when donating stock options
Note to reader: The purpose of this publication is to provide general information, not to render legal advice. In addition any changes in the tax structure may affect the examples listed in this information. Your client should consult their own lawyer or other professional advisor about the applicability of this information to their situation.