Gift of Securities
A gift of publicly traded securities can provide you with the unexpected capacity to make a meaningful difference at Gravenhurst Against Poverty (G.A.P.). In 2006, the Government of Canada eliminated the capital gains tax on the donation of certain publicly-traded securities, including stocks, bonds, mutual funds, and exchangeable securities. This means that making a direct donation of securities is now the most effective way of minimizing taxes while supporting the future health and well-being of the Gravenhurst community.
The Benefits
Capital gains tax on publicly listed stocks and securities are exempt when you donate shares to a registered charity. You can support G.A.P. through an unrestricted donation, or designate your gift to a particular program or area of interest to you.
How Does it Work?
Making a gift of securities to G.A.P. is very easy.
When you contact us about your gift, someone from our team will provide you with our Gift of Publicly Listed Securities transfer form, which will help initiate the transfer of securities. You can directly download the transfer form here.
You will need to complete the form and submit it to your broker or financial advisor to initiate the process. Please also advise G.A.P. of the pending transfer by forwarding a copy of the form to us. A copy of the completed and signed form is required to ensure the timely processing of your gift and to issue a charitable tax receipt.
You will receive a tax receipt based on the closing price on the date when the shares are transferred to Gravenhurst Against Poverty.
Case Study
Here’s the difference between donating shares directly rather than writing a cheque after selling the shares. In this example, the donor is considering a gift of shares worth $25,000, with the original purchase price of $5,000. This donor makes $143,000 in income per year and as a result, has a 46% marginal tax rate.
A gift of publicly traded securities can provide you with the unexpected capacity to make a meaningful difference at Gravenhurst Against Poverty (G.A.P.). In 2006, the Government of Canada eliminated the capital gains tax on the donation of certain publicly-traded securities, including stocks, bonds, mutual funds, and exchangeable securities. This means that making a direct donation of securities is now the most effective way of minimizing taxes while supporting the future health and well-being of the Gravenhurst community.
The Benefits
Capital gains tax on publicly listed stocks and securities are exempt when you donate shares to a registered charity. You can support G.A.P. through an unrestricted donation, or designate your gift to a particular program or area of interest to you.
How Does it Work?
Making a gift of securities to G.A.P. is very easy.
When you contact us about your gift, someone from our team will provide you with our Gift of Publicly Listed Securities transfer form, which will help initiate the transfer of securities. You can directly download the transfer form here.
You will need to complete the form and submit it to your broker or financial advisor to initiate the process. Please also advise G.A.P. of the pending transfer by forwarding a copy of the form to us. A copy of the completed and signed form is required to ensure the timely processing of your gift and to issue a charitable tax receipt.
You will receive a tax receipt based on the closing price on the date when the shares are transferred to Gravenhurst Against Poverty.
Case Study
Here’s the difference between donating shares directly rather than writing a cheque after selling the shares. In this example, the donor is considering a gift of shares worth $25,000, with the original purchase price of $5,000. This donor makes $143,000 in income per year and as a result, has a 46% marginal tax rate.
If the donor sells the shares, then donates the money to the G.A.P., they unnecessarily pay $4,600 in taxes and get a $9,384 tax credit. Alternatively, if the donor donates the shares directly to G.A.P., they pay $0 in taxes and get a bigger tax credit of $11,500. G.A.P. also receives a larger donation amount in the second scenario.
This makes the most sense, especially if you are sitting on highly appreciated shares where most of the sales proceeds could be capital gains.
Get Started
To get started, download the .PDF form below and send it to us - or - if you have questions or would like assistance with this process, you can e-mail us at [email protected].
| Donating Securities to G.A.P. |