Gift of Property
Making a gift of property can be a mutually beneficial way to support the important humanitarian work of the Canadian Red Cross. You may choose to make a gift of property outright, or you may irrevocably assign ownership of the property now and receive the tax benefits while enjoying the property for the rest of your life. The eventual sale of the property will provide funds to support the Red Cross programs and services you designate.
When planning a gift, consider the following:
Securities/Investments: Listed securities, including stocks, bonds, mutual funds, RRSPs and GICs, can be assigned to a charity. Or you may choose to donate only the earnings from dividends and interest. Recent changes in tax law have made gifts of securities particularly appealing. (Please see the Red Cross pamphlet “Gifts of Securities” for more information.)
Real Estate: Houses, cottages, commercial buildings and land can be valuable sources of funds. When the property is sold, all or part of the proceeds can be used to support Red Cross programs and services. A tax receipt will be issued for the market value of the real estate.
Personal Property: Jewelry, antiques, art and vehicles are examples of personal property that can be used to make a significant charitable contribution. Because all property has a cash value, the donor is entitled to a tax receipt for the fair market value of the property. Depending on the type of property and the specific circumstances, an independent appraisal may be required to determine the value.
There are many tax implications relating to the donation of property. For example, artists and collectors who donate from their collections may have to declare a portion of the value as income. Or a gift may be considered to be the disposition of capital property, so the donor may have to pay tax on a capital gain. However, the donation tax credit will usually exceed the tax on the gain, resulting in a savings.
A financial advisor can help you determine how a gift of property can best meet your needs while helping a cause you support.
For more information, contact your local Legacy Representative.