Donations

AMT and Donations

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Changes to the Alternative Minimum Tax (AMT) rates and rules are scheduled to take effect on January 1, 2024.  For the first time AMT will apply to charitable donations from high-income individuals, which is worrying for charities and donors. Simply, targeting donations is poor tax policy that will produce unintended community harm. There is now a wealth of information on these changes from the charitable and planning community. I have….

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Philanthropy/Charitable Giving

Better Life Insurance Donations

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Recently I received an inquiry from a life insurance advisor about a client who wished to establish a policy and donate it to two charities.  My colleague wanted to know if this was possible.  In my experience it is possible, but not the best way to do it. Donation Structures in Canada there are two basic ways to donate using life insurance. A donor makes the charity owner and beneficiary….

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Insurance, Philanthropy/Charitable Giving, Uncategorized

Restricted gifts of real estate

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When I was a young charitable gift planner, my charity was offered a cluster of islands on Georgian Bay.  Surrounding the 100-year-old family cottage were sheds, cabins and boat houses.  The donors had a vision: it would be a children’s camp. It was a stunning property.  Valuable, despite the sagging, mouse-infested buildings.  But this gift by will was contingent and restricted.  It would be a children’s camp, or nothing at….

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Estate Donations, Estate Planning, Philanthropy/Charitable Giving, Uncategorized

Budget 2019: Erosion of Charitable Incentives

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The 2019 Federal Budget was uneventful in terms of charitable incentives (journalism aside), but there are two proposals that will directly affect giving. The first relates to donations of cultural property – especially art with foreign origins – and the second to employee stock options. The former represents the reinstatement of a long-standing incentive, while latter an erosion. Cultural Property First the good news. The Budget reversed a 2018 federal….

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Philanthropy/Charitable Giving, Uncategorized

Life Insurance Gifts Restructured

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Life insurance is an effective way to make a significant future donation, but the unfortunate reality is that charitable policies have a high lapse rate.  Thousands of policies have been donated since 1979 when the Canada Revenue Agency allowed premiums to be receipted.  Sadly too few pay out to fund charitable programs. There are some practical reasons for the lapse rate. Charitable life insurance policies are sold in the moment,….

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Estate Planning, Philanthropy/Charitable Giving

Donations involving Private Company Shares & Real Estate

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The announcement in the 2015 Federal Budget that capital gains would be eliminated on donations involving private company shares and real estate was short on detail. As a result the measure, which would be effective beginning 2017, was not passed by Parliament. In mid-summer, the Department of Finance released the technical details and invited public comment. Feedback is due on September 30, 2015. The Federal election makes the future of….

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Charitable Giving, Estate Administration, Estate Planning, Philanthropy/Charitable Giving
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