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June 2023
Hope you are well.
This instalment of CharityMATTERS is devoted to the impending enactment of new Alternative Minimum Tax (AMT) rules on January 1, 2024.
The rule change will result in less money reaching Canada’s charities. Most members of Canada’s Philanthropy community are unaware of this. Canadian charities risk losing millions of donation dollars from AMT. The proposed Alternative Minimum Tax (AMT), if enacted, will make it more difficult for charitable organizations to raise much needed money.
Generous people who donate appreciated public securities up until now (eg non-registered stock, mutual funds, ETFs, segregated funds) will no longer enjoy the same tax benefits. Right now there is no capital gains tax when making an in-kind donation of appreciated securities and donors get a charitable donation receipt for the full market value.
If proposed AMT rules are enacted in 2024, it will create a tax on 30% of the gains making it far less favourable to help the charities we are passionate about.
Who is going to replace all of those donations? Is the government going to? We need to stand up for Canadian Philanthropy.
Please consider sending a letter to Minister of Finance Chrystia Freeland and other elected officials.
My personal letter to Minister Chrystia Freeland appears below. Please consider sharing this with your network and adding your personal comments. I also urge you to copy, edit and paste it into your own email and sent it to Chrystia.Freeland@parl.gc.ca
Let’s get this proposed changed amended before it gets enacted in 2024!
My Letter to Minister Chrystia Freeland:
Honorable Minister:
I am an independent financial advisor in Toronto now celebrating 31 years in professional practice, and a strong advocate of charitable giving. My professional designations include Certified Financial Planner, Trust & Estate Practitioner and Master Financial Advisor – Philanthropy.
Much of my work involves helping families to incorporate strategic philanthropy into their estate planning while creating enduring family legacies for generations to come.
We also work with Canadian charities, large and small, in the areas of fundraising and Legacy Planned Giving. We are currently engaged with 60 charitable organizations.
With many charitable giving strategies available to generous Canadians, I often recommend that clients donate their publicly listed shares to worthy causes and have used that technique to support large and small donations to local hospitals, universities, museums, performing arts, environment and social welfare organizations.
I am extremely concerned about the new Alternative Minimum Tax (AMT) rules, and the negative impact they will have on donations to charities.
Did your government intentionally or unintentionally take steps to reduce the level of charitable donations made using this technique?
The calamitous imposition of AMT to donations of public shares will negatively impact fundraising in Canada. Will our government fill the financing gaps created when people are no longer donating publicly listed securities at the current level?
Please reconsider implementing this legislation and seek further input from charities and financial advisors before making it into law in 2024.
I would be happy to assist in any way that I can.
Many thanks,
Mark Halpern
CFP, TEP, MFA-P Philanthropy
WEALTHinsurance.com Inc,
Philanthropy Fridays on LinkedIn
Please connect with me on LinkedIn to ensure you receive timely announcements, event notices, etc.
MARK YOUR CALENDAR: I am hosting a Philanthropy Friday LinkedIn Live event on Friday July 7th (12:00-1:00 pm EDT) on the proposed AMT changes with Alexandra (Ali) Spinner, Partner in Crowe Soberman’s Tax Group. More details to follow on LinkedIn.
Get your MFA-P designation and save 15%
I encourage every insurance advisor, accountant, lawyer, investment advisor, and estate planning professional to get the MFA-P designation - especially with a 15% discount!
It’s been my pleasure to serve as a faculty member and contribute course content for the MFA-P program. Our CPP Philanthropy™ forms an entire module of the course.
Aside from the valuable pedigree and a certificate that’s suitable for framing, the MFA-P designation (especially with a 15% savings on the course fee) signifies a body of knowledge that will put you above the crowd of other advisors.
Hope to have you join the MFA-P family! Reach out to me if you have any questions
Please be in touch if you have any questions or suggestions
Thanks in advance
Mark
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