For larger donations, you may also make a donation of securities. Such donations can be made without incurring taxation of any capital gain that otherwise would apply to the disposition of a security. For further information, please follow the link to Donation of Securities.
The LGAC issues a tax receipt for all eligible donations.
Thank you for your generous support.
For further information on specific ways of donating, please explore below.
Named Scholarships 1
Corporate and Foundation Sponsorships 2
Donations of Securities 3
HELP THE LGAC BUILD ITS SCHOLARSHIP PROGRAM
The LGAC has designed three multi-year plans of donation commitment leading to one or more Named Scholarships. All are based on the current cost of $10,000 per Scholarship.
(i) SINGLE NAMED SCHOLARSHIP: A MULTI-YEAR DONATION TO FUND ONE NAMED SCHOLARSHIP
The LGAC will designate a Single Named Scholarship to honour a donor who commits to donating a total of $10,000 through a multi-year donation commitment of at least $1,000 per year until the target is met. For example, a donor could give $1,000 per year for 10 years, or $2,000 for 5 years.
For donors who have made significant cumulative donations in the past, the LGAC is offering a partial Donor Credit towards the cost of their Named Scholarship to encourage these donors to donate one or more Scholarships. Full details of the Donor Credit can be obtained by downloading the Named Scholarships information package.
(ii) MULTI-YEAR NAMED SCHOLARSHIP: A MULTI-YEAR DONATION TO FUND SEVERAL ANNUAL NAMED SCHOLARSHIPS
The LGAC will name one Named Scholarship per year to honour a donor for each donation of $10,000 during a multi-year commitment. For instance, a donor could commit to donate $100,000 over 10 years ($10,000 per year) to fund 10 annual Named Scholarships, or $20,000 per year for 5 years for the same result. Similarly, $25,000 per year donated for 2 years would fund 5 Scholarships over 5 years.
The Donor Credit(s) described below may also be utilized for one or more years as part of a Multi-Year Scholarship commitment.
Donors may also convert a Multi-Year Named Scholarship for a fixed number of years into an incremental Endowed Scholarship on a permanent basis. In effect, the LGAC would permit the capital roll-over of any unspent donation amount for a Multi-Year Scholarship into capital for an Endowed Scholarship (see below).
For both the Single Named Scholarship and the Multi-Year Named Scholarship, the LGAC intends to use the funding to build its scholarship capital rather than increase the number of awards. The LGAC will work with donors to time the naming of their scholarship during the latter part of their donation commitment period or shortly thereafter. For donation commitments made after 2015, the LGAC may increase the $10,000 donation amount for a Named Scholarship to reflect the current cost of a scholarship.
(iii) ENDOWED SCHOLARSHIP: A MULTI-YEAR DONATION TO CAPITALIZE AN ANNUAL FULLY-FUNDED NAMED SCHOLARSHIP
The LGAC will name an annual scholarship on a permanent basis to honour a donor who makes a capital commitment of $300,000 to fund a new scholarship. In addition to funding an incremental new scholarship, the endowing of a scholarship provides the donor with some scope to direct the use of the scholarship funds, provided that the scholarship winner does not receive any preference over a Scholarship applicant who was ranked higher.* If no candidate qualifies to win this scholarship, the LGAC may defer the award and make an additional award in a subsequent year. The LGAC reserves the right to limit scholarship awards during the donation term to reduce their impact on the endowment’s capital.
* This provision was adopted for the Molson Foundation Scholarship for which a francophone winner must first qualify as the winner of an LGAC Scholarship.
FOR FURTHER INFORMATION:
– Contactadmin@lgac.ca to receive further information or arrange a call to discuss donation alternatives.
What if none of these plans specifically works for you, but you are interested in some combination of these plans’ features? We would be happy to discuss options.
We look forward to hearing from you.
CORPORATE AND FOUNDATION SCHOLARSHIPS
To augment the number of LGAC Scholarships, the LGAC created the Corporate and Foundation Sponsorships under which Named Scholarships are funded through corporate and foundation donations.
The LGAC is very grateful to the following firms, who have sponsored LGAC Scholarships in previous years:
AIM Trimark Funds Management
CIBC World Markets, Deloitte and Touche Consulting Group
Fidelity Investments Canada
Merrill Lynch Canada
Royal Bank Financial Group Foundation
Scotia Capital Markets
In addition, the Bank of Nova Scotia has sponsored a scholarship for a Caribbean student in London.
Starting in 2009-10, the LGAC began awarding the LGAC / Molson Foundation Scholarship for Francophone Canadians on an annual basis.
To date, the LGAC has raised over $440,000 from corporate and foundation sponsors and is actively seeking new sponsors. In addition, the LGAC has received more than $40,000 from two individual members to fund a designated Scholarship, the Neil Black Memorial Scholarship. Further, the LGAC Board members commit as a group to fund at least one annual Scholarship from their individual donations. This Board-funded Scholarship has been designated as the Richard Helmstadter Memorial Scholarship in honour of the late Dr. Richard Helmstadter, former Chair of the LGAC. The Allan J. Hartley Memorial Scholarship was designated in recognition of his generous bequest to the LGAC.
The cost of studying in London is very high (approximately C$40,000 per year) and continues to escalate. While it may seem obvious, the LGAC’s Scholarship Program is intensely competitive and the winners are outstanding.
If you know of a potential sponsor who would be interested in learning more about our Corporate and Foundation Sponsorship Program, please contact Brian Cardie, the LGAC Administrator, at firstname.lastname@example.org, who will forward the message to the appropriate LGAC Executive.
DONATIONS OF SECURITIES
The LGAC has accepted its first donations through the transfer of securities and established the administrative process for other donors. Since 2006, Canadians have been able to donate securities to a charity and take advantage of a provision in the Income Tax Act under which a capital gain on the disposition of the donated securities is excluded in the donor’s tax calculation. This can provide the donor with an additional tax benefit if the cost base of the security would normally trigger a capital gain.
For example, assume an Ontario donor with a combined federal and provincial marginal tax rate of 40%. If the donor has already made a charitable donation of $200 in the year, subsequent donations will receive a tax credit of about 40%, thereby offsetting the tax on income for the donation amount. Normally, if the taxpayer sells a security where the proceeds of disposition is higher than the security’s cost base, 50% of the capital gain is taxed as income at the taxpayer’s marginal tax rate. However, if a donor makes the donation through the transfer of securities, the capital gain is excluded. For instance, if the market value of the security is 35% higher than the cost base of the security, the tax on the capital gain would normally be 7% (40% x 50% x 35%). The 7% saving raises the total tax benefit from the donation from 40% to 47%. Note that the calculation will vary from province to province and depends, obviously, on the size of the capital gain on the specific donated security.
The LGAC has posted a Donation of Securities Form above. On the Form, the donor provides the name of the security and the specific number of shares to be donated, as well as the donor’s investment account information. The donor delivers the Form to his or her investment advisor who arranges for the transfer of the securities from the donor’s investment account to the LGAC’s investment account. (The LGAC’s investment account information is also on the Form). While the security’s transfer can usually be executed within a few hours after the donor delivers the Form to his or her investment advisor, donors should be aware that the value of the donation is based on the ‘fair market value’ of the securities at the actual at the time of day that the securities are deposited into the LGAC’s account. Canadian charities can issue a tax receipt for the fair market value amount. In order to minimize a charity’s market risk, charities instruct their investment advisors to sell the donated securities as soon as possible after they are received in their account. Any change in the value of the securities after receipt in the charity’s account does not affect the donation amount. When donor files his or her income tax return, the donor records the transaction on the Canada Revenue Agency Form 1170, inputting the donation amount as the cost base of the donated securities, rather than the actual historical cost base, thereby eliminating any capital gain.
While there is no specified minimum donation amount for making a donation of securities, it will likely be of interest to donors considering a donation of $2,000 or more. The LGAC needs to be advised in advance of any securities donation so it can instruct its investment advisor to sell the securities as soon as possible after they reach the LGAC’s account. Any member wishing to discuss the donation of securities should contact the LGAC’s Administrator, Brian Cardie, at email@example.com. He will arrange a call to review the process with you in more detail.
Get in touch
P.O. Box 5896, Station A
Canada M5W 1P3