Gifts of Securities
What's The Benefit?
Donating publicly traded securities directly to a charity benefits you as the donor and us as a charity. With changes to the Income Tax Act, donating shares directly to a charity allows for the capital gains to be exempt.
How Do I Get Started?
Contact Jeremy Tuff at 403-319-0831 or by email email@example.com to get a Gift of Securities Form.
Here is an example of the benefit of donating publicly traded securities directly to the Calgary Food Bank (assumes a personal tax rate of 39%):
|Donate Stock Directly to the Calgary Food Bank (as of December 2012)||Sell Stock and then gift the after-tax proceeds|
|Original Share Cost||$2,000||$2,000|
|Capital Gain on Stock||$8,000||$8,000|
|Taxable Capital Gain||$0||$4,000|
|Tax Payable on Gain||$0||$1,560|
|Net Gift to the Calgary Food Bank||$10,000||$10,000|
|Tax Credit to Donor||$4,950||$3,390 ($4,950-$1,560)|
If you have specific questions about the financial implications of donating securities you are advised contact your financial planning professional.