First-time giving now more rewarding
New donors have Super incentive; veteran givers Braley and Joyce give back to their communities
Whether you are just contemplating dipping your toe into big-time charitable giving or you are Canada’s doughnut king or maybe the double owner of CFL franchises, with tremendous track records of donations, there’s ample incentive to prepare a planned-giving plan for your future.
For the newbie, the federal government is offering extra incentive in the form of a lucrative new tax credit that the feds hope will encourage people to get into the habit of charitable giving.
As Evelyn Jacks recently explained in the Toronto Star, first-time donors are now entitled to an additional 25-per-cent credit for cash donations up to $1,000. The First-Time Donor’s Super Credit (FDSC) will apply on cash donations claimed in respect of any one taxation year from 2013 to 2017.
Here’s how it usually works: on the first $200 given, you’ll get a 15 per-cent-federal credit, for the balance, a credit of 29 per cent. In Ontario, when the 11-per-cent provincial credit is factored in, close to 40 per cent of your $1,000 gift is refunded.
If you or your spouse gave for the first time (or neither of you have done so since 2007), an extra 25 per cent is added to the 15 per cent and 29 per cent respectively. You’ll get close to 60 per cent of your donation back, adding up to tax savings of almost $600 of the $1000 you gave. But you can only make the claim once now until 2017. Donations from prior years will not qualify.
The FDSC will be available in respect of donations made on or after Budget Day 2013.
If there are two gentleman who it’s certain will not be using the FDSC, it is two Canadian business giants and significant donors, David Braley and Ron Joyce.
As Daniel Nolan of the Hamilton Spectator reported in April, former senator and owner of Orlick Industries David Braley has made a joint donation with former Tim Hortons owner Ron Joyce to the Joseph Brant Hospital Foundation of Burlington.
Each made $3-million gifts on April 2 to the foundation's Our New Era Campaign. Joyce's donation came from The Joyce Foundation, while the other was from Braley and his wife, Nancy Gordon.
"There's more substance to the fact that substantial money is being raised and, basically, it was felt that we could entice other people who have got significant money to donate also," Braley said. "It's better to make a $6-million announcement than a $3-million then another $3-million. That's how we looked at it."
It also helped that Braley and Joyce are friends and neighbours. They have homes near each other in Burlington.
The Braley-Gordon gift will lead to the new surgical wing being named after the couple.
The redevelopment will include construction of a new seven-floor patient tower and more than 60 new beds. The project is expected to be finished by 2018.
Joyce called the redevelopment "a wonderful project" and was pleased to join other donors in supporting it.
Braley, also the owner of two CFL teams, said he and his wife decided in the last three months to help out. He estimated about 25 per cent of his employees live in Burlington so they made the donation "so that they have better health care, their children have better health care, their families, and the community as a whole."
Braley, 72, has made other significant donations to Hamilton Health Sciences, St. Joseph's Hospital, McMaster University and the Art Gallery of Hamilton.
He chuckled when asked if he is done.
"No, I'm young. I'm healthy," he said.