Charitable Gift Options: Gifts of Cash

When a donor makes a gift of cash or property to a local community foundation, every dollar goes to work the moment it is given, providing vital current support to local programs and/or building endowment funds to provide support for the future.

A gift of cash gives a donor the satisfaction of seeing their gift at work today and knowing that lives are being touched right now because they cared.

Gift Examples

  • Cash
  • Cheques or Money Orders
  • Payments on Credit Card
  • Pre-Authorized Contributions (PAC), usually paid monthly

Benefits to the Donor

  • Donation receipt for the full amount of gift
  • Straightforward, easy-to-understand transactions
  • Significant immediate tax benefits
  • Satisfaction of seeing the gift at work immediately

Most Appropriate for

  • Everyone (any age) who can afford to give up some principal and the income it would otherwise earn

Example

Ms. Smith has net income of $150,000 and is planning on making a $10,000 gift.

Net income $ 150,000
Income tax 67,500
Donation tax credit - 4,500
Net tax due 63,000
- -
Charity receives 10,000
After-tax cost of gift 5,500

For illustration purposes a combined tax rate of 45% was used. Please note that combined tax rates vary across the provinces. 2009 tax table.

Note to reader: The purpose of this publication is to provide general information, not to render legal advice. In addition any changes in the tax structure may affect the examples listed in this information. Your client should consult their own lawyer or other professional advisor about the applicability of this information to their situation.

Writing a cheque

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