{"id":478,"date":"2021-04-18T20:30:00","date_gmt":"2021-04-18T20:30:00","guid":{"rendered":"https:\/\/fundingmatters.com\/blog\/fmi\/?p=478"},"modified":"2021-06-18T19:01:58","modified_gmt":"2021-06-18T19:01:58","slug":"main-street-the-backbone-of-the-economy-and-charitable-organizations","status":"publish","type":"post","link":"https:\/\/fundingmatters.com\/blog\/?p=478","title":{"rendered":"Main Street: The Backbone Of The Economy And Charitable Organizations"},"content":{"rendered":"\n
\"\"<\/a><\/figure>\n\n\n\n

Main Street: The Backbone of the Economy and
Charitable Organizations<\/h1>\n\n\n\n

In the last blog, Sophie\u2019s Legacy<\/a>, we discussed how Registered Retirement Investments can transform estate planning. As soon as potential donors have access to the FUNDING matters Power Donor Experience (PDX) and the GIFTABUALTOR, their calculus can change.<\/p>\n\n\n\n

Simply put, most people don\u2019t know how to make tax-efficient donations. When they\u00a0have the proper tools to understand how to do this, they\u2019re much more willing to donate\u00a0to the charitable organizations that need their\u00a0help.\u00a0Today, we\u2019ll talk about small business shares, and how a man named Joe made a $1million donation to his favourite charity and still found a way to benefit his family.<\/p>\n\n\n\n

How Donating Capital Assets Can Benefit Everyone<\/strong><\/p>\n\n\n\n

As of December 2017, the Canadian economy totaled 1.2 million employer businesses. Of these, 97.9 percent were small businesses, 1.9 percent were medium-sized businesses, and 0.2 percent were large businesses. More than half of Canada\u2019s small businesses are concentrated in Ontario and Quebec (440,306 and 249,685 respectively).<\/p>\n\n\n\n

According to Trevor R. Parry<\/a> M.A. LL. B LL.M (Tax) CLU TEP, an Ontario lawyer focusing on tax, most of the taxes are paid by small business owners, and they should be able to direct their taxable capital gains to benefit their communities \u2014 not only in taxes but also in charitable giving. Trevor suggests, the gift of shares could be both a living tax plan and a testamentary one. In the first case, the business owner would gift shares of the company to a charity.<\/p>\n\n\n\n

As the entrepreneur owns those shares personally, the gift will result in creating a\u00a0Charitable Donation Tax Credit which is particularly useful as they are likely exposed to\u00a0some top-rate taxation (53.53% in Ontario).<\/p>\n\n\n\n

Joe\u2019s Story<\/strong><\/p>\n\n\n\n

In Joe\u2019s case, he and his advisor decided that it was the right time to make a significant donation to his favourite university. How much was that donation? $1,000,000.<\/p>\n\n\n\n

Here\u2019s a screenshot of the\u00a0GIFTABULATOR<\/a>\u00a0with the information about his $1,000,000\u00a0donation plugged in.\u00a0<\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n

As you can see, his asset is not only worth 4 times as much today,\u00a0but he also generated a\u00a0significant tax credit and reduced his tax to only $137,719. In\u00a0the end, he made a $1,000,000 donation while only paying $558,448.<\/p>\n\n\n\n

Final thoughts<\/strong><\/p>\n\n\n\n

Overall, the success of the economy and charitable organizations is based on the backbone of small businesses. With the guidance of financial advisors, prospective donors can wisely create tax-efficient lasting legacies for the communities that they serve.<\/p>\n","protected":false},"excerpt":{"rendered":"

Main Street: The Backbone of the Economy andCharitable Organizations In the last blog, Sophie\u2019s Legacy, we discussed how Registered Retirement Investments can transform estate planning. As soon as potential donors have access to the FUNDING matters Power Donor Experience (PDX) and the GIFTABUALTOR, their calculus can change. Simply put, most people don\u2019t know how to make tax-efficient donations. When they\u00a0have … Continue reading Main Street: The Backbone Of The Economy And Charitable Organizations<\/span><\/a><\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-478","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/fundingmatters.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/478","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fundingmatters.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fundingmatters.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fundingmatters.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/fundingmatters.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=478"}],"version-history":[{"count":1,"href":"https:\/\/fundingmatters.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/478\/revisions"}],"predecessor-version":[{"id":481,"href":"https:\/\/fundingmatters.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/478\/revisions\/481"}],"wp:attachment":[{"href":"https:\/\/fundingmatters.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=478"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fundingmatters.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=478"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fundingmatters.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=478"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}