Corporate charitable giving lets business owners support the causes they care about while making good use of the tax rules. Whether you’re growing your company or preparing to sell it, planned giving can leave a lasting legacy. In Canada, a corporation can deduct eligible donations to registered charities from its taxable income, within annual limits. Before you give, read the CRA’s guide on what to know before you give.
Your corporation can own a policy and name a registered charity as beneficiary, or donate the policy outright. In this way, modest premiums can fund a much larger gift in the future.
Donating shares that have grown in value, instead of selling them first, can eliminate the capital gains tax on that growth. As a result, more of the value goes to the charity.
You contribute to a charitable fund and receive a receipt right away. Then, you recommend grants to charities over time.
A foundation gives you more control over your giving. However, it requires more setup and ongoing administration.
If you’re selling your business, a planned gift can offset part of the tax on the sale. That’s why it’s worth planning early with your accountant.
Our experienced consultants can help you:
By building charitable giving into your business plans, you create a legacy that benefits both your family and your community. Contact us to explore your options.
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