What is a charitable gift?

Are you new to introducing charitable gifts to your practice? Let us help you.

The Canada Revenue Agency (CRA) defines a charitable gift as a voluntary transfer of property without valuable consideration to the donor. A transfer of property, for which the donor receives an advantage, is still considered to be a gift for purposes of the income tax act, as long as the transfer was made with the intention to make a gift. An intention is presumed when the fair market value (FMV) of the advantage does not exceed 80 percent of the FMV of the transferred property.

A charitable tax receipt may be issued for the eligible amount of the gift as long as it meets the 80 percent rule. This is the amount by which the fair market value (FMV) of the gifted property exceeds the amount of the advantage. 

Want an example? Your client donates real estate to a charity with a fair market value of $500,000.00. There is a $200,000 outstanding mortgage owing on the property that the charity agrees to assume. This is an advantage to your client for making the gift. As value of the advantage does not exceed 80 percent of the FMV of the gift, the charity issues a charitable tax receipt for $300,000 representing the difference between the fair market value and the value of the advantage.

 

Learn more about Canada’s Charitable Tax Credit now.

Here's a helpful list of the top 10 things every advisor should know about charitable giving.

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Have questions? Contact us:

Charles O'Neil: 902 442 7196
Lori Scott: 902 442 7199
Katharine Berrington: 902 442 7146

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Resources for your practice

Professional Advisors Guide
A guide for financial advisors - CAGP
Ten articles that will make a difference in your practice.

Survey and report
CAGP report link
Understanding advisors' approaches and clients' perspectives.

The QEII Foundation inspires generosity to advance health care at the QEII Health Sciences Centre. With financial support from all levels of the community, the Foundation helps fund new technologies, research, innovation and education that contribute to life-changing moments experienced every day by patients and their loved ones.

 

 

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Contact Us

QEII Health Sciences Centre Foundation
5657 Spring Garden Road
Park Lane Mall, Suite 3005, Halifax, Nova Scotia B3J 3R4
Phone: 902 334 1546 | Toll Free: 1 888 428 0220
Fax: 902 442 7172 | Email: info@qe2foundation.ca

Charitable Business No: 88646 3496 RR0001

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