Wellspring Cultural Foundation is a Canadian registered charity. Our charitable registration number is 11929 0963 RR0001.
Benefits of making a gift:
- Receive a tax receipt for the appraised fair-market value determined on the day the gift is made.
- Claim charitable donations up to 75 per cent of your net income, plus claim 25 per cent of the taxable capital gain resulting from a gift of appreciated capital property.
- A five year carry forward on unused donation amounts is permitted.
Giving to Wellspring Cultural Foundation through a planned bequest will allow you to plan your gift now, but donate it at a later date. When creating a bequest to Wellspring, the designation can be made in general or directed to a specific undertaking or activity (i.e. a certain program or charitable endeavor that Wellspring supports). It is common to designate an amount as a portion of an estate’s value. This way, if your estate has changed in value from the time you create your Will, Wellspring will be given an amount corresponding to your estate’s change in value. While donating to Wellspring is the main motivation for many of our donors, the accompanying tax credit earned is an added benefit to the use of a bequest. Your estate qualifies for a tax credit that can be used in the year of death and the preceding tax year to offset earned income, which can be a powerful tax planning tool. You may claim up to 100% of your net income in your final tax return, or the year preceding. Take the case of a supporter of Wellspring who died on June 1, 2013 and named Wellspring in their will. The $170,000 donation produces a tax credit which is large enough to reduce his 2013 tax liability to nil, but there’s still some tax credit left over. The following chart shows how the benefit from the donation in the year they pass away can be carried back against previous year’s income. After tax, this donation of $170,000 costs $93,500 to the donor. Additionally, if there were a leftover amount after having carried back the total donation in the year of death (if, for example, the donated amount was $500,000 rather than $170,000, which would leave $300,000 of donations to be claimed) a surviving spouse of the donor may claim this or carry it forward indefinitely to be used against future income.
|2012||2013 (year of death)|
|Donation tax-credit limit (100% of income)||$150,000||$50,000|
|Carry-back of donation tax-credit||–||$120,000|
|Donation claimed on tax return||$120,000||$50,000|
|Donation tax-credit received||$54,000||$22,500|
Finally, a bequest is revocable and can be changed if your financial circumstances change.
When including Wellspring in your will, please contact us for sample wording.
Stocks & Securities
Registered accounts (RRSP, RRIF, LIRA, and TFSA)
Wellspring and other charitable organizations can be a named beneficiary on registered retirement plan documents. A tax receipt for the value of the investment gifted will be issued to the donor’s estate (this may be all or part of the assets in the plan) and applied towards the final income tax return. Benefits of making a gift of RRSPs or RRIFs:
- RRSPs/RRIFs gifts are a tax-effective means of supporting Wellspring. You have use of the retirement saving investment while you are alive. Your estate may claim gifts in the year of death equal to 100 per cent of your net income in that year and the preceding year.
- RRSPs/RRIFs become fully taxable as income in the year of death, usually at the highest marginal tax rate, unless any remaining funds in a RRSP/RRIF account can be rolled over to a surviving spouse or a dependent child.
RRSPs/RRIFs gifts are revocable and can be changed if your financial circumstances change.
Charitable Trusts/Charitable Giving Account