Gifts of Securities
A gift of shares to the Almonte General Hospital-Fairview Manor provides a wonderful opportunity to make a meaningful difference today to health care in your community.
Thanks to changes that have been in effect since the 2006 federal budget, making a gift of publicly listed securities in Canada has also brought attractive tax advantages.
Imagine that Mr. Smith owns 1,000 shares of a stock he purchased at $15 a share a decade ago. Today the price per share has gone up to $21, meaning that his stocks are now worth $21,000. Mr. Smith decides to sell the shares, receive $21,000 (minus commission) and then donate the whole amount to his favourite charity.
If Mr. Smith gave the shares directly to the charity, he would be much better off. By selling the shares, he must pay income tax on 50 per cent of the increase in value (capital gain) of the securities. However, in 2006 the government of Canada decided to encourage gifts of appreciated investments by eliminating the gains tax on such donations. When you donate an appreciated investment to a registered charity, you do not pay tax on any of the gain.
Stocks and Securities
Several donors have taken advantage of a tax provision that exempts donations of appreciated securities from capital gains tax. When an individual sells an appreciate stock or mutual fund, he or she is required to pay tax on 50 per cent of the capital gain. However, thanks to the Federal Government budget of May 2006, if a donor gives the appreciated securities to a charity, they pay no capital gains tax.
The Almonte General Hospital-Fairview Manor Foundation will provide the donor with a charitable tax receipt for the fair market value of the securities.
Transferring your appreciated securities to the AGH/FVM Foundation is easy. Please complete our Securities Gift Form and give to your broker to complete the transaction.
For more information, please call 613-256-2514, ext. 2297