Maximize Your Impact: Donating Through Your Operating or Holding Corporation in Canada

Do you have an operating or holding corporation in Canada? Have you considered the powerful benefits of donating through your corporation?

This strategic approach not only amplifies your charitable impact but also offers significant financial advantages.

Your corporation has the potential to be a powerful tool for good. Donating through it not only reflects your commitment to philanthropy but also ensures your contributions are optimized for maximum benefit. Take the step today and see how your corporate giving can create a lasting impact, expanding the influence of Christ in our culture through Christian education

First, donating through your operating or holding corporation allows you to leverage pre-tax dollars for charitable contributions. Corporations can claim a tax deduction for donations, reducing taxable income and, subsequently, the corporate tax liability. This means your donation can have a larger impact enabling charities to receive more substantial support.

Additionally, gifting publicly traded securities such as mutual funds, shares, bonds or REITs through your corporation can be highly beneficial. When these assets are donated directly, the corporation is exempt from capital gains tax, and the full market value of the securities is eligible for a tax deduction. This can significantly enhance the value of your donation while providing substantial tax relief.

Furthermore, your corporation realizes the capital gain and avoids the associated tax. The full capital gain is still included in the calculation of your Refundable Dividend Tax on Hand (RDTOH) account. This means that even though the tax on the gain is avoided, the “dividend account” is credited, allowing the possibility of future dividends to be paid to the shareholders tax free.

By taking action now, you can make a difference while strategically managing your finances. Contact Kevin at [email protected] to discuss these opportunities further. You will also want to consult with your financial advisor or tax professional to explore the best donation strategies for your corporation.