Planned Giving and Canadian Charities

November 23, 2015

CRA letter on gifting to a public foundation

CRA recently released a letter which discusses whether a gift of a share of the capital stock of a corporation to a public foundation to which subsection 118.1(5) applies after 2015, would qualify as an 'excepted gift' as defined in subsection 118.1(19) of the Income Tax Act. 

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September 14, 2015

Humber Fundraising Management Course “Ethical and Legal Issues”

Mark Blumberg will be team teaching, with Valerie Campbell and Sharilyn Hale, the Humber Fundraising Management Course "Ethical and Legal Issues".  It was previously taught by Ken Wyman so we will have big shoes to fill.    

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August 26, 2015

Finance releases consultation on draft legislative proposals for Budget 2015 charity provisions

The Department of Finance in late July released for consultation purposes draft legislative proposals that will have an impact on charities.   The 2 main changes are an "exemption from capital gains tax for certain dispositions involving private corporation shares or real estate where the cash proceeds are donated to a registered charity within 30 days" and "providing rules to enable registered charities to acquire or hold interests in limited partnerships in certain circumstances."

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April 28, 2015

Fundamentals of Receipting by Canadian Charities [SOLD OUT]

Properly issuing official donation receipts has been challenging for many registered charities.  According to the CRA, 89% of registered charities that are audited are not correctly issuing official donation receipts.  Issuing incorrect receipts can result in revocation or penalties. It is easier to do it right than fix problems later! Here is a new half-day program from Blumbergs entitled "Fundamentals of Receipting by Canadian Charities".

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March 11, 2015

CRA letter on gifts made by will

CRA recently released a letter which discusses whether a gift by will of marketable securities provided to a Foundation would be deemed to have been made immediately before the death of the donor.  CRA concluded that the gift did constitute a gift by will made immediately before the death of the donor under subsection 118.1 (5) of the ITA.  The letter appears to have been written before the 2014 budget, which will have an impact on the bequests are dealt with in estates where the testator died on or after January 1, 2016.     

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February 21, 2015

Recent decision of the BC Supreme Court in Re Mulgrave School Foundation

The British Columbia Supreme Court recently released a decision, Re Mulgrave School Foundation, which discusses charitable gifts that are made for a specific charitable purpose and whether it is possible to change that purpose. Unfortunately, in this case the donors and schools had restricted their gift to be an endowment for scholarships and they did not have in the agreement a power to amend the restrictions.

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February 13, 2015

CRA letter on Spousal Sharing of Charitable Gifts

CRA recently released a letter with respect to spousal sharing of charitable gifts that was written to David Sherman, one of Canada's top tax lawyers.  As a result of recent legislative amendments in Bill C-43 which received Royal Assent on December 16, 2014, CRA has changed their administrative practice with respect to spousal sharing of charitable gifts with respect to deaths occurring after 2015 (i.e. in 2016 or later).  Bill C-43 included amendments affecting how will and certain designated gifts will be treated for tax purposes for gifts occurring after 2015 and according to CRA this necessitated the change.  The legislative changes affect the taxation of gifts made by will - in some case they will provide greater flexibility but in other cases or situations they may deny certain tax benefits.   

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December 01, 2014

Mark speaking on planned giving at 2nd Elderly Client Conference

Mark Blumberg will be speaking on "Planned Giving and the Elderly Client" conference on January 23, 2015

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September 01, 2014

Finance consults on draft tax legislation on bequests to Canadian charities and trust taxation

Following up on the 2014 Budget, Finance has released draft tax legislation for consultation.  The changes with respect to bequests to registered charities are from Budget 2014, and will allow some greater flexibility for claiming the charitable donations against either the estate or a trust.   This bequest proposal has generally been welcomed.  It will deal with some situations were there is a mismatch between the income a deceased person or their estate has and the amount of gift left to charity.   

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March 21, 2014

CRA letter on charitable gifts by secondary will

The CRA recently released a letter which discusses whether a taxpayer's estate was entitled to donation tax credits claimed for a charitable gift made by an individual in her secondary will. The use of a Primary and Secondary Will may be for a number of reasons, although typically in Ontario  the assets that don't require probate are placed in a different will to those assets that do require probate.   In this way some of the probate tax can be avoided.   The letter discusses various issues such as whether the trustees had the discretion to make a gift to a Charity and the factors considered when determining whether a donation to a charity has been made by a taxpayer in their will.

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February 10, 2014

2014 Federal Budget and its Impact on Canadian Charities

Today Finance Minister Jim Flaherty introduced the Canadian Federal Budget 2014.  The budget had a large number of provisions dealing with non-profits and charities. Here are some excerpts from the Federal Budget in one PDF document.    Overall I was very pleased with the provisions of the budget dealing with charities.

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January 27, 2014

The Globe and Mail: ‘Forever’ falls out of fashion in charitable giving

The Globe and Mail recently had an article which discusses the concept of perpetual endowments as well as the use of donor advised funds and bequests. Read article >

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July 04, 2013

Planned Giving and Professional Advisors - The Why and How to Involve Professional Advisors

In this article I discuss the importance of Canadian charities involving professional advisors in their planned giving efforts.

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July 04, 2013

Starting a Basic Planned Giving Program for a Canadian Charity -  A Lawyer’s Perspective

In this article I provide some suggestions to charities in Canada as to how they can easily start a planned giving program for their charity.

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July 04, 2013

What is planned giving?

In this article I discuss different planned giving vehicles in Canada.

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May 31, 2013

CRA letter in French on charitable remainder trusts

Here is a letter from CRA in French on charitable remainder trusts.  According to the summary the letter discusses “1) Whether the gift of an interest in a trust will give rise to a tax credit pursuant to subsection 118.1(3)? 2) Whether the capital interest is non-qualified security?”  The letter refers to the requirements in IT226R “Gift to a charity of a residual interest in real property or an equitable interest in a trust”.

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March 10, 2013

AFP Greater Toronto Chapter Fundraising Day 2013 - Planned Giving Institute - June 5, 2013

On June 5, 2013, Trevor Clark and myself will be delivering the “Planned Giving Institute” for AFP Toronto’s Fundraising Day.

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September 03, 2012

CRA letter on tax implications of donation of newly acquired life insurance policy to charity

The CRA recently sent a letter discussing the tax implications of a donor making a gift of a newly acquired life insurance policy to a registered charity.

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August 13, 2012

CRA letter on dates and value to be used on official donation receipt for bequest under will

Here is a CRA letter which discusses the dates and value to be used on official donation receipts for a bequest under will.

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July 09, 2012

“Where do I start when leaving a legacy to a charity?” - presentation with Lois Fleming

I am looking forward to giving a presentation with Lois Fleming of The Salvation Army on “Where do I start when leaving a legacy to a charity?”.  This presentation is part of the CAGP Toronto Leave a Legacy Community Outreach Committee

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June 22, 2011

Terrorism and use of intermediaries to carry out charitable activities?

It is pretty obvious that Canadian charities, whether operating in Canada or outside of Canada, cannot directly or indirectly support terrorism.  Canada has anti-terrorism legislation and charities should due due diligence before transfering assets to non-profits and other entities both in Canada and abroad.

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December 13, 2010

CRA letter on Canadian charities and alter ego trusts

Here is a recent CRA letter dealing with “If, as a consequence of a gift, a charity holds a beneficial interest in an alter ego trust, will the restriction in subsection 118.1(13) apply in respect of the gift?”

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November 12, 2010

Determining the “Cost” of Life Insurance Policies as a Charitable Gift when transfer to charity

Here is a letter from CRA in response to a question about valuing a life insurance policy when it is transferred from a non-arm’s length person to a donor and subsequently gifted to a qualified donee.  It deals with the deemed fair market value rules.  Determining_the_Cost_of_Life_Insurance_Policies_as_a_Charitable_Gift.pdf

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July 12, 2010

What is “cost” of life insurance when donating to registered charity?

In this letter CRA discusses “Whether the adjusted cost basis is a reasonable proxy for “cost” of an interest in a life insurance policy in applying the deeming provisions of 248(35) with respect to a gift to a qualified donee in certain circumstances.”

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June 03, 2010

Bequest giving in Canada - article by FLA Group on importance of bequest fundraising

Here is an article by FLA Group entitled “Legacy Marketing Overview March 2010”  The article has some interesting statistics and thoughts on the importance of encouraging bequest giving. I agree that Canadian charities do not spend enough time doing this type of planned gift and we are far behind places like the UK.  Hopefully this article will encourage some to put more time and resources into this area.

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Do you require legal advice with respect to Canadian or Ontario non-profits or charities?

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Charity Lawyer Mark Blumberg

Mark Blumberg is a partner at the law firm of Blumberg Segal LLP in Toronto and works almost exclusively in the areas of non-profit and charity law.

mark@blumbergs.ca
416.361.1982
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