Gift of Securities
You can completely eliminate capital gains tax by donating your securities to our Foundation instead of selling them, and then donating the cash. If you sell them first, 50% of the capital gain will be subject to income tax.
To donate securities, please complete the following steps:
- Notify your financial advisor that you wish to transfer securities. With the help of your advisor, complete and sign this Letter of Authorization (provides your advisor with the authority to transfer the securities to our brokerage account).
- Follow the instructions on the form to advise our broker and our office* of your transfer.
- When we receive the transferred securities (which can take a few days—or weeks, in the case of mutual funds), we will issue you a tax receipt for the closing price of the securities on the date they were received into our account.
To speak with someone confidentially about transferring securities, please email Jessica Bell or phone 250-519-6721.
*We ask that you let us know when you’ve initiated a transfer as there can be a delay between your request to your broker and the donation arriving in our account. If we know of your intention, we can help facilitate the process.
Gifts of Securities in Your Will
The benefits received in tax savings also apply to gifts of securities made through your Will.
How Can We Help?
If you, or your advisor, have questions about this, or any other type of gift and wish to discuss this in confidence, please email Jessica Bell or phone 250-519-6721.
A case study showing the benefits of transferring securities:
John and Roberta are thinking about giving shares of ABC Corp to the Children’s Health Foundation of Vancouver Island – their favourite charity. They originally paid $5,000 for the shares which are now worth $10,000. They wonder — is it better to donate the shares directly or sell them first and give the cash?
After reviewing the situation with their advisor, they learn that by donating, rather than selling them first, they'll save an extra $1,100 in taxes.
Sell Shares, Donate Cash
|Donation—Value of Shares||$10,000||$10,000|
|Cost of Shares||$5,000||$5,000|
|Taxable Portion||$2,500||$0 (Exempt)|
|Donation Tax Credit||$4,400||$4,400|
|Tax Savings from Donation||$3,300||$4,400|
|Cost of Donation (after tax)||$6,700||$5,600|
|Extra Tax Savings from Donating Shares||$1,100|
*Assumes John and Roberta are in the top tax bracket in B.C. (44% marginal rate). Because they donated $200 earlier in the year, their share donation is credited at the top marginal rate.
This document does not constitute legal or financial advice. Prior to making any decision on a significant gift, we recommend you consult your advisors to ensure it is structured to suit your personal circumstances.