Let’s break the rules!

No new Gift Planning projects from me this summer…instead, I’m going to urge you to make a new best friend at summer school.

Your Annual Giving Colleague (AGC). 

What are you reading this summer? Ulysses? Fifty Shades of Grey? From the sublime to the ridiculous (but which is which?) I hope you find some down time to read something you love. I also hope you’re spending time this summer creating stories—making memories with your loved ones.

A couple of decades ago, some of the largest Canadian charities were suffering. Federal cuts to transfer payments, seen as necessary to balance the national government books, were a body blow to universities, hospitals and others.

Help for the charitable sector came in the form of a policy change in line with what donors enjoy in the U.S.  After considerable lobbying, Ottawa agreed to “temporarily” reduce in 1997, then permanently eliminate in 2006, the capital gains tax on appreciated securities when donors gifted them in kind to charity.

Since the announcement of the “estate donation” rules in the 2014 Federal Budget, there have been a number of amendments that have addressed sector concerns and drafting errors.  

One unintended consequence in the original estate donation provisions relates to gifts of private company shares.  All estate donations of private company shares to any registered charity would be categorized as a non-qualifying security, not just gifts to private foundations.  As a result, no tax receipt could be issued until the shares are sold within a 60-month window.