Taxation advantages to charitable giving are limited to a tax credit in the amount of 15% of the first $200 of donations for the year and 29% for donations above that level. The maximum amount of donations you can claim in a year is 75% of your net income. The Alberta charitable tax credit is 50-cents for every dollar donated over the $200 threshold.
In the year of death and the year before (including bequests and legacies), the annual limit is 100% of net income for the year. This allows for effective tax planning to be utilized through the use of charitable gifts through your Will. Careful planning with an informed tax adviser can ensure that your philanthropic goals are met and the tax benefits are available to you and your estate.
You are now able to donate shares or stocks versus cash. Gifts in kind are valued at their fair market value however, at the time of donation you must recognize any capital gain that would result had you sold the property for that price. Individuals or corporations who donate securities listed on prescribed stock exchanges, mutual funds and segregated funds of life insurance companies to charities do not have to include any portion of the resulting gain in their income.