Anthony Layton MBA, CIM

Chairman & CEO, Portfolio Manager

Peter Guay MBA, CFA

Portfolio Manager
  • T514.875.7566 x 224
  • 1.800.875.7566
  • F514.875.9611
  • Place Alexis Nihon
  • 3400 de Maisonneuve Ouest,
    Suite 1501
  • Montreal, Quebec H3Z 3B8

Donation Tax Strategies

As the current taxation year is coming to an end, there are many opportunities to reduce your tax burden by giving to the causes you hold dear:

  1. Donations in Cash: Cash donations at the federal level receive a 15% tax credit on the first $200 and a 29% credit on all donations over $200. At the provincial level, Quebec offers a tax credit of 20% on the first $200 donated and 24% on all amounts in excess of $200.
  2. Donations of Publicly Traded Shares: Donations of securities allow individuals to avoid capital gains taxes on accrued gains while receiving a tax receipt for the full value of the security. For corporations this strategy can be even more lucrative: half of the amount of the capital gain on the donated securities can be paid to shareholders tax-free.
  3. Cultural Gifts (Quebec): The Quebec government has implemented new short-term measures ending January 1, 2018 to encourage cultural philanthropy. The first time an individual donates cash under this program, for amounts between $5,000 and $25,000, to a Quebec charity “operating in the field of art or culture,” he or she will receive an additional 25% tax credit. Individuals can also give $250,000 or greater (which can be spread over a 10 year period) to a QC cultural organization for which they will receive an enhanced tax credit.
  4. Political Contributions:  Individuals can contribute up to $1,275 to a registered federal political party for which they will receive a tax credit up to $650. Beginning in 2013, contributions to Quebec provincial political parties are no longer eligible for a tax credit. However, individuals can still give up to $200 to Quebec municipal political parties for which they will receive a tax credit up to $155.
  5. Donation of Ecologically Sensitive Property: Ecologically sensitive land can be given to an approved charity but must be certified by Environment Canada as ecologically sensitive before doing so.

The holidays are a great time of year to express support for your local community. We’d be happy to help you in implementing any of the above-mentioned strategies. 

By: Peter Guay & Justin Spina | 0 comments