Ways to Give
There are unique ways of planning your gift to the Covenant Christian School Capital Campaign, some of which offer increased tax benefits. More than one type of gift combination may also work well for you. We suggest all donors seek professional advice as to their own personal financial situation.
Cash donations to the Campaign are acceptable as outright gifts or in the form of a pledge. Pledges are payable over a 3 and if necessary, can be extended to 5 years. Typically, a first pledge payment is made in the year in which the pledge is signed. Cash donations can be made via Cash, Cheque or e-transfer. Charitable receipts can only be issued after the pledge has been fulfilled.
In Kind donations are at times the best way for a company to make a significant contribution to a building campaign. In Kind donations may be in the form of product or services. Each of these gifts is treated differently through Canada Revenue Agency. Charitable Tax receipts may be issued for donations of product, whereas, the gift of services cannot. If a Charitable Tax receipt is requested for gift of services, the donor must invoice the school for the value of the service; the school must then pay for those services which the donor then donates back to the school. If this process is followed, then a tax receipt may be issued.
Often a more tax effective way to make a major donation without the encroachment of liquid assets is via a gift of securities (i.e., stocks, bonds, mutual fund units and other securities), particularly those which have significantly increased in value since their acquisition. When making donations of appreciated property, it is best to give it directly to a charity rather than selling it first and giving the cash proceeds. When giving the actual security directly to the charity, Revenue Canada allows the taxable portion of the gain (or the inclusion rate) to be zeroed. The charitable tax credit amounts to approximately 45% of the donated value and can be used to reduce other tax liabilities. This type of gift can be easily transferred and processed by Covenant Christian School. We ask that you speak with a financial planner or your accountant to determine if this would be an effective way for you to donate.