Means & Meaning

The Season of Re-Gifting: An MNP Partner shares his favourite Tips for Charitable Year End Giving

Christmas “Re-Gifting” gets a bad rap in some circles, but in the broader perspective of God being the source of all we have received, passing along anything to others is a re-gift! Since 2014, Darren Swann, CPA, CA, has generously donated his time and expertise at PGTS Camp Meeting seminars, sharing the latest in charitable tax developments and fielding audience questions. It’s been a great gift to all of us who want to “give back” and “give smarter.” Darren collaborated with Dianne Hayduk, also of MNP, to share their favourite year end giving tips. I re-gift their timely advice to you.

LYNN McDOWELL

Christmas is the season for giving, and charities in Canada receive up to 30% of the next year’s budget during “The Season”. Here are some tips to get the most from your year-end giving:

1) Make sure you collect the official receipts

Charity receipts can only be used as a successful donation deduction if they are complete, and contain:

• name, address, of organization and registered charity number • date, eligible amount, and place of receipt

• full name and address of the donor

• signature of authorized individual

• serial number of receipt

• name and website address of the Canada

Revenue Agency

The Canada Revenue Agency website also maintains of all registered charities, through Canada.ca/en/ services/taxes/charities.

2) Consider giving greater than $200

Additional tax credits are available to individuals who give greater than $200. In Alberta, tax credits of 25% of amounts of $200 or less are available to be deducted against an individual’s taxes payable. However, for donations over $200, the additional credit will qualify for a 50% tax credit, or possibly up to a 54% credit if you’re in the top tax bracket.

3) Give personally rather than corporately

In Alberta, it is more tax advantageous to make a

DID YOU KNOW?

Giving in the Alberta Conference happens mostly in the last quarter of the year. Typically, about one third of tithe, offerings and gifts to the Conference are given in November and December, with 25% of the year’s total income in these categories contributed in the month of December. As of October 31, the Conference received approximately $13,280,000 —an increase of 6.3% above last year's COVID- affected numbers.

donation personally then through your corporation. If you wish to share some of your corporate profits, consider distributing funds to the shareholder(s) to allow him/her to make the donation personally. If you reside in a different province, you should review with your tax advisor which method is more advantageous.

4) Donate publicly-traded shares

If shares are donated directly to a registered charity, capital gains relating to those shares are not taxed in the hands of the donor. The charity can issue a tax-receipt for the fair market value on the donation date of those shares allowing the full amount to be included in calculating the donor’s donation tax credit.

For discussions on other giving scenarios, such as estate donations, donations of life insurance, or shares of private corporations, please contact Lynn McDowell or Darren Swann at MNP LLP Darren.Swann@mnp.ca.

Darren Swann, Tax Partner for MNP’s Central Alberta tax group, is headquartered in Red Deer but travels to Airdrie and Drumheller as well. Darren has extensive experience in charitable gift planning and in farm succession planning.

Dianne Hayduk is a Tax Manager for MNP’s Manitoba tax group.

Lynn McDowell, JD, CSPG

Director of Planned Giving | Philanthropy Alberta Conference (403) 342-5044, ext. 233