Gifting accounts
An MFC gifting account allows your clients to make a donation in one year and distribute it to charity immediately or over a period of years. A charitable receipt is issued for the full amount in the year the gift is made. The client may recommend distribution of the gift and accrued earnings to the charities of his or her choice.Planning benefits:
- A gifting account provides flexibility and stability for your client's charitable giving when they have fluctuating income.
- If your clients sell an investment or have received a large sum of money they may make a gift and receive a charitable receipt in the current tax year, but distribute the gift over a period of time.
- A gifting account may allow your client to maximize the tax benefit of a gift by timing the charitable receipt with the potential tax liability.
- Record keeping is simplified by reducing the number of receipts.
- The distribution to charity may be made anonymously.