By: Leap Magazine
While gifting with cash, cheque or credit card often comes to mind when considering ways to support your favourite charity, planning your gift from other assets can help you make a bigger impact, save more tax and see no reduction in your daily bank account. Here, we cover four of the more common ways to give from other sources.
Make a lasting impact with a blended pledge — provide half the funding during your lifetime and the other half from your estate, which can enable you to donate more.
The most tax-efficient way to give is by donating publicly traded securities. Eliminate capital gains tax on the appreciation and receive your tax receipt for fair market value.
Transfer ownership of a paid-up life insurance policy that has outlived its original purpose. Your immediate charitable tax receipt will be for up to the policy’s fair market value.
Donor-Advised Funds, Foundations, Trusts
Dollars may have been set aside for planned charitable use. Consider creating an endowment or named fund with distributions from your existing foundation, fund or trust.
There are even more ways to support your favourite cause that don’t take cash from your bank account. Ultimately, a certified financial advisor who understands charitable giving can provide the best strategies for biggest impact and largest tax savings.