The Tax Implications of Giving

How Much of Your Donation Receipt Can Be Used in Any One Year?
The maximum donation receipt amount usable in any year is 75% of your net income. The exception to this general rule is during the final year of your life when the limit is 100% for that year plus 100% for the preceding year. Included among the gifts for which a donation receipt will be issued for the final year of life are any charitable bequests, gifts of retirement plan assets, and life insurance proceeds that are payable upon your death.

Appreciated Property
If you give appreciated assets, such as real estate or securities, your contribution limit is 75% of your net income plus 25% of the taxable gain arising from the gift.

"Excess" Contribution
If you are unable to use the full amount of a donation receipt in the year of transfer, you may carry forward any "excess" amount for up to five subsequent years.

Gifts That Provide Benefits During Life
You always receive a donation receipt from Wycliffe when you establish a charitable gift annuity, as well as when you create a charitable remainder trust or make a gift of a residual interest in real estate. You may receive a donation receipt from a gift annuity as well. Various factors, such as the nature of the arrangement and your age or the term of years involved, affect the amount of the donation receipt. The Office of Gift Planning will calculate the donation receipt for you.

Substantiating Your Contribution to Wycliffe
You must have a donation receipt from the charity to which you made your gift in order to qualify for a tax credit. In the case of property, other than listed securities, there must be a qualified appraisal.

To learn more about planned gifts and how to make a difference at Wycliffe, please contact Keith Pickerill at 1-800-463-1143, Keith_Pickerill@Wycliffe.ca , or request a "Personal Illustration".