1 / 81

High Octane Charitable Giving

2007 saw $10 billion donated in Canada. Increase of 12% over 2004Over 2.1 billion hours volunteeredAverage donation was $437 ? up 9% from 2004Over 23 million Canadians donated25% of the 23 million gave 82% of the $10 billion.Religion = 46% of $10 billion donated. 35% of 23 million. High Octan

sheera
Download Presentation

High Octane Charitable Giving

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


    1. High Octane Charitable Giving

    2. High Octane Charitable Giving

    3. High Octane Charitable Giving

    4. High Octane Charitable Giving

    5. High Octane Charitable Giving Known as “Public Charities”: All resources devoted to charitable activities; and More than 50% of trustees, directors must be at arm’s length. However, charities are not re-designated solely on contribution; and/or Not more than 50% (75% for Foundations) of capital contributed or paid in came from related persons (except other charities, municipalities, governments, etc); and Can carry on other businesses (e.g. annuities, car washes, gift shops) Public Foundations can not incur some debt (e.g. annuities).

    6. High Octane Charitable Giving All aspects of Charitable Organization and Public Foundation except: More than 50% of trustees or directors are not at arm’s length; and/or Can not do some investments (non-qualifying investment) Can not do any other business More than 50% of capital came from related persons or companies; and

    7. High Octane Charitable Giving

    8. High Octane Charitable Giving

    9. High Octane Charitable Giving

    10. High Octane Charitable Giving

    11. High Octane Charitable Giving

    12. High Octane Charitable Giving

    13. High Octane Charitable Giving

    14. Combined federal and provincial rate = highest MTR (exception is Alberta) Tax deduction versus tax credit Gifting non-cash property reduces tax savings Property tax, GST, PST, and so on Advantage/eligible amount Timing of gift (current/deferred) Tax Treatment for Gifts

    15. Contribution limits (Indv/Corp) Contribution carryforwards Direct versus indirect tax savings ITA 110(2), 110(1)(d.01), (2.1), 110.1(1)-(7) Corp ITA 118.1(1)-(20) Indv 149.1(1)-(24) Reg 3500, 3702 Charities 38(a.1),40(1.01) 237.1(1) 248(30)-(41), 143.2(6.1), Reg 3200 ALL of the above Tax Treatment for Gifts, cont.

    17. Cash Listed securities Insurance (intangible) Personal-use property (such as boats) Real property (such as vacant lots) Capital (such as buildings) Interests (such as trusts) Other/combinations Types of Property Gifted

    18. No longer king! No income inclusion Easy to use Universally accepted Different currencies acceptable Valuation simple Cash

    19. Non-private shares Maximize tax savings Easy to use Valuation easy to obtain Timing issues (when to issue tax receipt) Accounting required Listed Securities

    20. Generally deferred benefit Cash when received Windfalls/surprises Valuation Accounting issues Heavily endorsed Insurance (Intangible and deferred)

    21. Someone else’s garbage Use can be more difficult External valuation if MV > $1,000 Convert to cash then donate CRA scrutiny (such as artworks) Operating Expenses (such as gas, tax, licenses) Obligated to accept Personal-use Property

    22. Use can be difficult External valuation required Often convert to cash then donate Operating expenses (such as utilities, taxes) Obligated to accept Net tax savings reduced Property taxes, maintenance, tennants, etc Real Property

    23. Use can be difficult External valuation required Convert to cash then donate Operating expenses (such as utilities, taxes) Management/tenant issues Obligated to accept Net tax savings reduced Capital Property

    24. Deferred benefit Often cash Easy to use once received HUGE Valuation issues Legal/accounting costs Ongoing reporting required No clear Finance roadmap Interests (Trusts)

    25. Trepidation Large $$$ Deferred Known/surprise Cross Border issues Tax issues for donor Gifting arrangements Promoted versus natural Other/Combinations

    26. High Octane Charitable Giving

    27. High Octane Charitable Giving

    28. High Octane Charitable Giving

    29. High Octane Charitable Giving Charity A with fiscal year-end of Feb 28, 2010 issued tax receipts for $1 million. Assuming no other assets, what amount must the charity expend on charitable activities by fiscal year-end 2011? $800,000 Charity B with fiscal year-end of Mar 31, 2010 issued tax receipts for $1 million. Assuming no other assets, what amount must the charity expend on charitable activities by fiscal year-end 2011? $35,000

    30. High Octane Charitable Giving

    31. High Octane Charitable Giving

    32. High Octane Charitable Giving

    33. High Octane Charitable Giving

    34. High Octane Charitable Giving

    35. High Octane Charitable Giving

    36. High Octane Charitable Giving Gifts by Way of Bequest or Inheritance

    37. High Octane Charitable Giving

    38. High Octane Charitable Giving

    39. High Octane Charitable Giving

    40. High Octane Charitable Giving

    41. High Octane Charitable Giving

    42. High Octane Charitable Giving

    43. High Octane Charitable Giving

    44. High Octane Charitable Giving

    45. High Octane Charitable Giving

    46. High Octane Charitable Giving

    47. High Octane Charitable Giving

    48. High Octane Charitable Giving

    49. High Octane Charitable Giving

    50. High Octane Charitable Giving

    51. High Octane Charitable Giving

    52. High Octane Charitable Giving

    57. High Octane Charitable Giving

    59. High Octane Charitable Giving

    60. High Octane Charitable Giving

    61. High Octane Charitable Giving

    62. High Octane Charitable Giving

    63. High Octane Charitable Giving

    64. High Octane Charitable Giving

    65. High Octane Charitable Giving

    66. High Octane Charitable Giving

    67. High Octane Charitable Giving

    68. High Octane Charitable Giving

    69. High Octane Charitable Giving

    70. High Octane Charitable Giving

    71. High Octane Charitable Giving

    72. High Octane Charitable Giving

    73. High Octane Charitable Giving

    74. High Octane Charitable Giving

    76. High Octane Charitable Giving

    77. High Octane Charitable Giving

    78. High Octane Charitable Giving

    79. CGA Personal Tax Planning handbook Charities section on PD Net (under Taxation) http://www.cra-arc.gc.ca/tx/chrts http://www.irs.ustreas.gov/ http://www.charitylaw.ca/index.html http://www.cagp-acpdp.org http://www.givingandvolunteering.ca/ dosborn@lawtonpartners.ca 1-888-944-1144, ext 256 Resources for CGAs

    81. High Octane Charitable Giving

More Related