Canada Gives… a Foundation for Charitable Giving

Canada Gives is a Toronto-based public foundation offering donor advised Foundation accounts and services to individuals and corporations. Canada Gives is registered as a charity with Canada Revenue Agency and Quebec Ministry of Revenue. Canada Gives provides the expertise for setting up charitable foundations, thereby making it easier and less costly for donors to build an ongoing Foundation that not only serves their philanthropic goals, but has a maximum impact on the charity(s) of their choice.

Canada Gives works with Investment Advisors and their clients to aid them in understanding, setting up and managing a personalized “Donor Advised Fund” (DAF). Setting up a DAF for individual and corporate donors is an important donation vehicle for the committed philanthropist.

A Canada Gives DAF account is a turnkey option for Investment Advisors and their donor clients in managing donations and developing a charitable giving strategy that meets their philanthropic goals. Canada Gives’ administrative platform was designed to maximize the financial impact of charitable gifts. Donations can be tailored to meet both the immediate and long-term gifting donations to the charity(s) of the donor’s choice, thereby allowing them the option to choose to allocate a portion of each gift between a one-time gift or an endowment gift.

Learn more about Canada Gives


TAX EFFECTIVE PLANNING WITH CHARITABLE GIVING

Combine Flow-Through Tax Deductions and Charitable Donation Tax Credits
Investment Advisors now have effective tools to work with their clients to maximize their clients’ after-tax cost from their charitable giving intentions. Simply stated, Investment Advisors can combine a Qwest flow-through limited partnership tax deduction and a charitable donation tax credit, using Canada Gives services, to reduce their clients’ charitable giving after-tax costs.

Flow-Through Tax Deduction: Investors receive a flow-through tax deduction from an investment in a Qwest flow-through limited partnership.

Donation Tax Credit: After the rollover of a Qwest flow-through limited partnership to a Qwest mutual fund, investors can donate their Qwest mutual fund shares to a charity (e.g. using Canada Gives services) and receive a tax credit based on the fair market value of the donated Qwest mutual fund shares.

No Capital Gain Tax:  CRA has eliminated the tax on capital gains on certain securities, such as mutual fund shares, that are donated in-kind to a registered charitable organization or foundation for amounts in excess of the original cost of the security (Note: the proposed changes in the March 2011 Federal Budget may impose a capital gains tax on the amount donated, up to the original cost amount).

Example of Maximizing After-Tax Cost ($100,000 investment and assumes investment value does not change):

Example of Maximizing After-Tax Cost $100,000 flow-through investment assumes investment value does not change: (Based on highest marginal tax rate in Ontario of 46.4%)
A.	Flow-through investment:	$100,000
B.	Flow-through tax deduction:	46,400
C.	Value of donated mutual fund shares:	100,000
D.	Capital gains tax:*	23,200
E.	Donation tax credit:	46,400
F.	Combined tax benefits (B+E-D):	69,600
G.	After-tax cost (A-F):	$   30,400
* Proposed 2011 Federal Budget change

For additional information on donating Qwest mutual fund shares, please click here

“Qwest Charitable Giving Fund” at Canada Gives

Qwest has established the Qwest Charitable Giving Fund at Canada Gives to simplify the donation process for the clients of our Investment Advisors. This means our Investment Advisor’s clients can choose to donate their mutual fund shares to the Qwest Charitable Giving Fund and then simply select the charity(s) they wish to support. Upon completion of a donation, the donor will receive a tax credit on the fair market value of their donated mutual fund shares, and their donation will support the causes that matter most TODAY and TOMORROW!

For Investment Advisors wanting more information on how Qwest and Canada Gives can add value to working with the charitable clients, please click here