Gifts of Stock
While gifts of cash are the most common way to give, if you’re looking for a way to make a meaningful donation to the Belfry and reduce your tax bill, consider a donation of securities.
What CRA 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 publicy 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 don’t have to pay tax on any of the gain – 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 at date of transfer) and will not pay the tax on the capital gain of $800.
To make a gift of securities, download this form (Microsoft word or pdf) and return it to your financial advisor.
For more information, please contact Susan Stevenson at 250-385-6835 or firstname.lastname@example.org