Qwest and Canada Gives: A Value-Add Affiliation
Canada Gives… a Foundation for Charitable GivingCanada 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.
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 48%)
|A.||Flow-Through LP investment:||$100,000|
|B.||Flow-through tax savings:||48,000|
|C.||Value of donated mutual fund shares:||100,000|
|D.||Donation tax credit:||40,120|
|E.||Combined flow-through and donation tax benefits (B+D):||88,120|
|F.||After-tax cost or benefit (A-E):||$ 11,880|
(C) Assumes flow-through limited partnership has rolled to a mutual fund.
(D) Assumes investor is a resident of Ontario for the purposes of the Donation Tax Credit calculation.
(F) Assumes: a) no capital gains were realized during the duration of the flow-through limited partnership prior to the rollover to the mutual fund and prior to the mutual fund shares being donated; and b) ACB of zero.
Note: This chart is provided for illustrative purposes only. The information herein is not intended to be a definitive analysis of tax, trust or estate law. In particular, this information does not consider possible federal minimum tax implications of the investment decisions. Professional advice regarding an individual's tax and legal position should be obtained.
DONATION CALCULATOR - to determine your personal "After-tax cost or benefit", click here
For additional information on donating Qwest mutual fund shares, click here
“Qwest Charitable Giving Fund” at Canada GivesQwest 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