Gifts of Securities to the Canadian Cardiovascular Society Academy™
As of the passing of the May 2006 federal budget, donations of publicly listed securities are exempted from capital gains taxation, making this one of the most attractive ways to support the Canadian Cardiovascular Society Academy (CCSA).
You will receive a receipt for income tax purposes for the full appreciated value of your donation of publicly traded stock or securities—similar to when you donate cash gifts.
Your receipt for income tax purposes will be in the amount of the closing trading price on the day CCSA receives delivery of the shares. (CCSA’s policy is to sell all securities donated as soon as we receive them.)
Donating securities is easy! The simplest way to make your gift of securities is to have them electronically transferred from your brokerage account to CCSA’s brokerage account.
Making a gift of $10,000 in stock: Dr. Donor purchased stock in the ABC Company some years ago for $2,000 (otherwise known as the Adjusted Cost Base – ACB). The stock’s current Fair Market Value (FMV) is $10,000. Dr. Donor has decided that he would like to make a substantial gift of ABC Company stock to support the work of the CCSA. His combined federal and provincial tax rate and charitable tax credit are both 45%.
|Sell shares & donate cash||Donate shares directly|
|Present value of shares||$10,000||$10,000|
|Purchase price of shares||$2,000||$2,000|
|Capital gain on shares||$8,000||$8,000|
|Taxable amount of capital gain||$4,000||$0|
|Tax payable* on capital gain||$1,800||$0|
|Tax credit on donation||$4,500||$4,500|
|Total tax saving||(Tax credit only) $4,500||(Credit plus tax saving) $6,300|
*For illustration purposes we have used an average marginal tax rate of 45%.
Tax savings is an additonal $1,800 if Dr. Donor donates the stock instead of selling the stock and giving the cash proceeds.
Charitable Reg. No. 8678757443RR0001
The information provided is general in nature and is not intended to be a substitute for professional legal or financial advice. The CCSA encourages all donors who are planning a significant gift to seek independent legal and/or financial advice.