Donations and bequests

More and more people want to donate money that will provide long-term economic benefits to their community. If this is your case, a well-designed tax strategy could allow you to support a cause you care about without penalizing your heirs.

Donations can be made:

• while you are alive (living trust)
• upon your death (bequest)
• to a community foundation or other charitable organization

Tax credits for charitable donations

Individuals who make donations are entitled to federal and provincial tax credits. Eligible donations are generally limited to 75% of net income, and any balance can be carried forward for 5 years. The limitation grows to 100% of net income in the year of death or the year preceding death.

Donations made by companies are considered expenses and may be deducted from the company's income.

Donating money or property

You can donate:

• money
• publicly traded stocks
• property (home, cottage, business, land, etc.)
• registered (RRSP, RRIF) and non-registered investments
• life insurance policies
• collections, jewellery, art