RBC Dominion Securities today announced the lauch of the RBC DS Charitable Gift Program. The program provides a tax efficient, convenient way for individuals to create a lasting legacy through contributions to a personal charitable gift fund, without the complicated administration and costs associated with establishing a private foundation.

The recent federal dudget announced the elimination of capital tax gains on donations of publicly traded securities. As a result, donating securities to a charitable organization may produce a greater tax benefit for donors than donating cash to a charity after selling the securities.

The new DS program enables clients to make ongoing contributions to a fund administered by the Charitable Gift Funds Canada Foundation (CGFCF), one of the leading foundations in the country. Donors receive an official charitable donation receipt for the full market value of their contributions. Gifts of qualifying securities may also be eligible for a capital gains tax exemption.

“This is a winning solution, both for charities and for investors,” said Anthony Maiorino, vp, RBC DS. “Canadians have always been generous, and this program is a response to our clients’ wishes to include charitable gifts in their long-term financial plans.”

Clients can contribute cash or qualifying securities to the CGFCF fund, then recommend grants to the charitable organizations of their choice based on the amount of accumulated investment earnings available in their account. They can also make a deferred contribution by naming their Charitable Gift Fund account as the beneficiary of a charitable bequest, a life insurance policy, a qualified registered retirement plan, a charitable remainder trust or another existing private foundation.

The program can help clients create an enduring family legacy by giving their fund a unique name. They can also name grant advisors and successors to the fund to ensure their family’s legacy. If there are no surviving successors after they pass away, CGFCF will continue their legacy by awarding grants to eligible charities consistent with the client’s original intent.