Donating Stocks, Shares & Securities
A donation of publicly listed Stocks, Shares or Securities is one of the most cost-effective ways to support Canadian Feed The Children.
Donating Stocks, Shares or Securities offers a number of valuable benefits:
- Easy Handling – Stocks, Shares & Securities can be transferred electronically.
- Eliminate Taxable Capital Gains – When you donate stocks & shares directly to us your taxable capital gains is eliminated.
- Charitable Tax Receipt – You will receive a charitable tax receipt for the total value of the shares, stocks or securities upon transfer.
- Carry Forward Excess Credit – Excess credit may be carried forward for up to five years if your donation exceeds the amount eligible for a tax credit in the year your donation is made.
- Tax Benefits for Your Estate – If you leave shares, stocks or securities to Canadian Feed The Children through your will, your estate will receive the same tax benefits.
- Multiple Donation Options – You can donate stocks, bonds, mutual funds, bills, futures and/or warrants.
How to Donate Stocks, Shares or Securities
The most effective way to donate securities to Canadian Feed The Children is to electronically transfer the shares from your brokerage account. Download, complete and send a copy of the Transfer Form below to Canadian Feed The Children so we can acknowledge and receipt your gift.
Download and complete this transfer form.
Tax Savings Example
All donations of publicly listed securities to charities will be exempt from capital gains tax. This can mean great savings in after-tax cost giving when compared to selling the securities outright and making the same gift of cash.
The example below compares the possible tax savings for an individual donor on a donation of $100,000 in publicly traded securities to Canadian Feed The Children against the proceeds from simply selling the shares to make the donation.
Mr. Smith gives Canadian Feed The Children publicly listed securities that he purchased for $60,000. The securities are now worth $100,000. The capital gain is $40,000. Mr. Smith’s combined federal and provincial tax rate is 46.5 per cent.
|Individual Giving to Canadian Feed The Children||Sell Shares and Donate Cash||Donate Appreciated Securities|
|Fair Market Value||$100,000||$100,000|
|Base Cost of Securities||$60,000||$60,000|
|Capital Gain on Securities||$40,000||$40,000|
|Taxable Portion of Capital Gain||$20,000 (50%)||$0 (0%)|
|Capital Gain Tax Liability||-$9280 (46.4%)*||$0 (46.4%)|
|Donation Tax Credit @ 45%*||$45,000||$45,000|
|Net Tax Saving by Making the Donation||$35,720||$45,000|
|Tax Benefit of Donating Securities||$9,280|
*The estimated tax credit for donations is valued at approximately 45 per cent income, for the portion in excess of the $200 threshold. The marginal tax rate for each province and individual is different – 46.4 per cent represents the highest marginal rate for Ontario. These figures are for illustration purposes only – each individual should obtain professional tax advice to understand his or her unique situation.
To learn more about how a donation of securities can help meet your personal, financial and charitable goals, please contact Cheryl Weldon:
Canadian Feed The Children
174 Bartley Drive
Toronto, ON, M4A 1E1 Canada
Tel: 416-757-1220 x 227