Gifts for the Present
There are many ways to establish a gift supporting your church’s ministry at the parish diocesan or national church level. Making an outright gift of cash or property puts the full amount to work immediately, supporting the church’s vital ministry in our local communities and around the world. Many Anglicans appreciate seeing their gift at work now and knowing that it will touch many lives.
For information or confidential assistance please do not hesitate to contact the Planned Giving consultant at:
The Planned Giving Office
The Diocese of Nova Scotia and Prince Edward Island
1340 Cathedral Lane
Halifax, NS B3H 2Z1
Tel: 902 420 0717 (Synod office)
Ways to give in the present:
Gift of Cash
Most Anglicans offer gifts of cash (or cheques) through the offering plate each Sunday. Some will want to make special gifts to their parish’s ministry, diocesan or national program.Gifts of cash are treated generously under the Income Tax Act. The charitable tax credit is a combination of the federal and provincial income tax credit. The federal credit is 16% of donations up to $200.00 and 29% for all donations over $200.00. Added to this is the provincial tax credit. In Nova Scotia and Prince Edward Island the total tax credit for donations over $200.00 is approximately 46%.Example:Joyce Aulenback writes a cheque for $1,000 to her parish to support its ministry endowment fund. Because she already has contributed more that $200.00 through her regular offering envelopes, she will receive a total tax credit of $460.00 for this donation. This means that the after tax cost of her $1,000 donation is only $540.00.You may claim up to 75% of your net income in charitable donations each year. Any excess credits may be carried forward for up to 5 additional years.Use securities rather than cash Example (MS Word File)
Gifts of Securities
Gifts of publicly traded securities (stocks, mutual funds, bonds) generate additional tax savings under the Income Tax Act. Normally when appreciated property is donated or sold, 50% of any gain must be taken into taxable income, often resulting in a considerable tax bill. However, if publicly traded securities are donated, none of the capital gain is taxable! You will receive a tax credit for the full market value of the securities making your gift very tax-efficient.Please note:To take advantage of the 0% taxable gain for your gift of securities you must transfer them directly to the church rather than selling them and donating the proceeds. Charles O’Neil, our Gift Planning Consultant, is available to help you arrange your gift for parish, diocesan or national ministry.If you are considering a cash gift to the church but have stocks or mutual funds of an equivalent value in your portfolio, then it may be to your advantage to contribute the securities. In this case 0% per cent of any capital gain triggered by the disposition of the securities is taxable, rather than the usual 50 per cent in the case of the securities being sold. You could then use the cash that you had planned to donate to repurchase the securities on the market. By doing this you will step-up the cost base of the securities. When you do sell the securities in the future you will be taxed only on the gain accruing since the repurchase.Remember that the tax credit you receive from the contribution will be based on the current market price of the securities.Donation limitsAnother point to remember is that the annual donation limit is now 75% of your net income plus 25% of any capital gain realized in the case of a gift of property. This will give most people plenty of room to use available tax credits. Also, any unused tax credits may be carried forward for up to 5 years.
Example of a Gift Annuity
A gift annuity is a way for senior Anglicans to make a gift now and receive increased after-tax income. The Church uses a portion of your contribution (usually about 25 - 30%) to purchase for you an annuity from a major insurance company paying you annually for life. The difference between your contribution and the cost of the annuity is available immediately for the area of the church's ministry you choose. You receive an income tax receipt for this amount. All or a substantial portion of the annuity payment will be tax free!Martin was intrigued to learn that Canada Revenue Agency has made some relatively minor changes in the way gift annuities are treated for tax purposes. So he did the math and was pleased with the results.
Martin, who turned 80 last month, decided to contribute $50,000 to his parish’s building renovation project. He contacted the Diocesan Planned Giving Consultant who explained how the annuity gift would work and obtained for him quotations from several major life insurance firms.Martin selected the best quote and the consultant arranged the purchase of the annuity providing Martin with annuity payments of $3,850 per year for the rest of his life. The cost of the annuity was $26,150 thereby leaving $23,850 for immediate use by his parish. Martin received a donation tax receipt of $23,850 for the year of the donation. Only $851.50 of his annual annuity payment is taxable.The annuity that Martin selected also contains a 5 year guarantee so that if Martin were to die within that 5 year period his parish would receive the remaining annuity payments.
Martin was delighted to make his gift and looks forward to receiving his substantial tax benefits. But most of all he eagerly awaits the completion of the building renovation project!
***The material contained at this web site is provided for information purposes only and is not intended to constitute legal or financial advice. The quality, timeliness, accuracy or completeness of any information at this web site, as well as its operation, is provided "as is" without representation, warranty or condition of any kind. All liability in respect of such information is disclaimed. Do not rely upon the information or apply it to your situation without first consulting your legal and/or financial advisors. Any reference or link to a third party is not an express or implied endorsement by the Diocesan Synod of Nova Scotia and Prince Edward Island