Charitable giving expert addresses P.E.I. groups
Donating assets – not cash - is a more strategic way to give charitably
Several P.E.I. charities met recently in Charlottetown to hear from a Canadian expert on the possible types of charitable gifts and how donors can benefit.
Paul Nazareth, vice-president of education and development with the Canadian Association of Gift Planning (CAGP), encouraged staff of Island charities to begin having deeper conversations with supporters about strategic charitable giving.
“If there is one message I can give charities today it is to continue to educate your donors to help them understand that they can also give from their assets,” says Nazareth. “Talk to them about giving their best performing stocks or shares as those stocks appreciate in value. When donors transfer the shares with the highest capital gains directly to a charity, it means they will receive the greatest charitable tax credit.”
Life insurance gifts are growing in popularity across the country, said Nazareth.
“As Canadians enter their retirement age, they may have an older paid-up policy that they no longer need or an existing policy with premiums still owing. By naming the charity the owner or beneficiary they can help their favourite charities and take advantage of generous tax credits. The key is to work with your financial advisor to plan your giving,” says Nazareth.
Nazareth said he was surprised to learn more than 80 per cent of Canadians support charities each year but fewer than 24 per cent make use of tax receipts.
Canadians can maximize tax credits with charitable gifts – if they take advantage of the breaks at tax time.
“P.E.I. is only marginally better than the national average at about 30 per cent of households using their receipts,” says Nazareth. “Writing a cheque or making a cash gift to a charity is a wonderful donation and has a significant impact, but Islanders should use those tax receipts to get more back from their donations and receive a bigger tax credit at the end of the year, which allows them in turn to give more in the future.”
Helen Chapman, chairwoman of the P.E.I. chapter, says CAGP is the only organization in Canada that brings together charitable representatives with donor advisors in one professional association.
“Our P.E.I. chapter plans to offer more workshops to educate our Island’s professional advisors and non-profit staff on the many types of charitable gifts,” says Chapman. “We encourage our donors on the Island to take a few minutes to talk to their charity representative and also their lawyer, financial advisor, accountant or insurance provider for guidance to decide on the most beneficial type of gift for them.”