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.

Individuals can make charitable donations:

• while they are alive (living trust)
• upon their death (bequest)

In both cases, donors can make donations to a community foundation or other charitable organization

Tax credits for charitable donations

Individuals who make donations are entitled to tax credits. The amount of donations, as well as donations carried forward for 5 years preceding the death are not subject to any limit in the year of death. There is no limit on the unclaimed amount 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