What the CRA (Canada Revenue Agency) considers a Publicly Traded Security:
- Shares, debt obligations, or rights listed on designated stock exchanges in Canada or internationally.
- Shares of capital stock of a mutual fund corporation
- Units of a mutual fund trust
- Interests in related segregated fund trusts (an investment fund relating to an insurance policy)
- Prescribed debt obligations
- Partnership interests that are exchangeable for publicly traded securities (certain circumstances only)
In Canada, it is more tax-efficient to donate your publicly traded securities in certificate form or “in-kind” directly to the Belfry. The government encourages the giving of appreciated investments by potentially eliminating the taxes you must pay on such donations.
Under normal circumstances, when you sell a publicly traded security, you are subject to income tax on 50% of the increase in value or capital gain. However, when you donate an appreciated investment to a registered charity, you do not have to pay tax on any of the gains – the inclusion rate in income is 0%.
For example, if you donate stock that was originally purchased for $1200 but now has a fair market value of $2000, you will receive a tax receipt from the Belfry for $2000 (valued as of the date of transfer) and will not pay the tax on the capital gain of $800.
To make a gift of securities, click below to download the form in Word or PDF format and return it to your financial advisor.
Full Legal Name: The Belfry Theatre Society
Registered Charity Number: 11921 5549 RR0001
N.B. The Belfry receives gifts of stock care of the Victoria Foundation.
For more information, please contact Susan Stevenson at 250-385-6835 or development(at)belfry.bc.ca
