Maximize Your Impact
When you open a GiftPact Donor-Advised Fund (DAF), you have taken the first step to doing more with your charitable dollars.
The power of in-kind donations.
Opening a GiftPact DAF allows you to donate shares of public or private corporations, mutual funds, covered flow-through shares, and life insurance. This type of in-kind donation may offer specific tax benefits.
Marketable Securities
When you donate shares of publicly listed corporations or mutual fund units to GiftPact, you will enjoy freedom from capital gains tax. As the donor, you’ll receive a charitable donation receipt for the value of the securities. See our case study on donating publicly listed securities.
Private Corporation Shares
Donating shares of private corporations to GiftPact triggers a capital gain to the donor in the amount by which the fair market value exceeds the adjusted cost base of those shares. However, you will receive a charitable donation receipt for the total value of these shares, which can offset the tax payable on the capital gain. Also, when the private corporation redeems those shares, it may be entitled to a refund to the extent it has refundable dividend tax on hand (RDTOH). See our case study on donating private corporation shares.
Covered Flow-Through Shares
Similar to shares of private corporations, donating covered flow-through shares to GiftPact will trigger capital gains tax, even if a publicly listed corporation issued them. However, we will issue a donation receipt equal to the proceeds that the charity received. Also, if you donated as an individual, you are entitled to deductions and tax credits that may reduce your after-tax cost of giving to less than 10% (compared with 50% for a cash donation). See our case study on donating covered flow-through shares.
Permanent Life Insurance
Donating a newly issued life insurance policy to GiftPact usually doesn’t result in a policy gain or a donation receipt. However, you will get a donation receipt for any premiums paid. See our case study about donating a new life insurance policy.
Donating an existing permanent life insurance policy can have many tax implications, including a policy gain (taxable as ordinary income). Contact GiftPact to learn more about this gifting option and if it is right for you.
*Depending on your situation, in-kind donations might be subject to alternative minimum tax (AMT)
Planning for long-range giving.
Opening a GiftPact Future Impact Fund allows you to plan longer term for larger gifts to charities as your charitable capital builds. Each time you make a donation to the fund, you will receive a charitable tax receipt, but you have the luxury of time to decide how you would like to distribute your funds.