This Christmas, give a gift of stock

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Posted: December 2012

Honouring your loved ones with a securities donation is a cost effective way to support the Foundation.

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Mrs. Gertrude Rellinger and her late husband, LeRoy, donated stock to fund the Foundation’s stroke research.

Generosity is part of Gertrude Rellinger’s heritage. As a child, she remembers her father Eugene, a baker, giving bread to local orphanages even in hard times. When he suffered a stroke, there was little help available. Now, thanks to caring donors, the Heart and Stroke Foundation Centre for Stroke Recovery is finding new ways to treat and rehabilitate stroke survivors.

To honour her father and help other stroke survivors, Mrs. Rellinger, along with her late husband LeRoy, made a generous gift of stock to the Heart and Stroke Foundation to fund stroke research. She learned that by donating some of her stock to charity, she could make a meaningful gift without paying the capital gains tax.

When you gift a gift of stock, your donation supports life saving research, health education and advocacy programs. From funding research discoveries which increase cardiac arrest survival rates, to educating at-risks groups about lowering their blood pressure and living a healthy lifestyle, you will help create better, healthier lives for thousands of people across Canada.

Many Canadians are turning their investments into gifts for charity.

When you sell an appreciated stock or mutual fund you are required to pay tax on 50 per cent of the capital gain. However, if you donate the securities to charity, you pay no capital gains tax. This makes appreciated stock one of the most cost effective ways to donate to the Heart and Stroke Foundation.*

The following example illustrates the benefit of gifting stock to make a charitable contribution versus selling the stock and donating the cash to charity: 

 

          Sell shares and gift cash to charity

Gift shares to charity

Proceeds of disposition (a)

$10,000

$10,000

 

Adjusted cost base (b)

$ 2,000

$ 2,000

 

Capital gains (c)

c = a - b

$ 8,000

$ 8,000

 

Tax on capital gains (d)

d = (c X 50%) X 46%*)

$ 1,840

$ 0

 

Donation tax credit (e)

e = a X 46%*

$ 4,600

$ 4,600

 

Net tax savings from donation

e-d

$ 2,760

$ 6,440

 

 

*assumes gift made in Ontario at a marginal tax rate of 46%

Support life-giving research with a gift of stock today.

The information provided is for illustration purposes only. Please consult your financial and/or legal advisor for tax-effective giving that is most suitable for you. Your charitable receipt will be valued based on the closing price on the day when the shares are legally transferred to the Foundation’s account at our custodial agent, Dundee Securities.



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