The May 2, 2006 federal budget presented donors and charities with a very big gift: the complete elimination of all capital gains tax on donations of publicly listed securities to public charities. If you own stocks or mutual funds that have grown in value, you will face a tax bill when you sell them. By donating them directly to The Canadian Hearing Society, you can reduce your tax bill and make a significant gift at the same time.
Benefits to You
- Opportunity to make a significant gift
- Receive a charitable tax receipt for the full value
- Pay no capital gains
- Securities are easy to transfer
- Recognition during your lifetime
Here’s how it works:
You purchase stock at $400. When it reaches $1,000, you donate the stock directly to The Canadian Hearing Society and receive a charitable tax receipt for $1,000. You pay no tax on the $600 capital gain. In addition, you will enjoy $460 in combined federal and provincial tax credits.
In this example, compare the advantages of donating the stock directly versus liquidating the stock and donating the proceeds.
|Donating Stock Directly||Donating Cash From Sale Of Stock
|Value Of Donation||$1000||$1000|
|Capital Gains Tax
||$0||$140 (50% of $600 gain x 46% tax)|
How to Donate Securities:
1. Complete the Letter of Instruction to Transfer Securities to The Canadian Hearing Society.
2. Contact Manager, Major Gifts and Planned Giving
3. Upon completion of the transaction, a tax receipt for the amount of the donation will be sent to you.
If you would like to learn more about donating publicly listed securities to CHS, please contact the Manager of Major Gifts and Planned Giving.