Did you know that donating shares could actually cost you only a small percentage of your gift’s value … and bring big money for the Foundation?

If you own stocks that have significantly increased in value, instead of selling them, you may want to consider donating them. Indeed, when selling securities, you may be taxed on capital gains. However, by donating your shares directly to the Foundation, you would avoid this potential taxation. Plus, it allows you to benefit from a tax receipt for the full market value of the shares at the time of the donation, without actually spending that amount. You could even claim a charitable tax credit, depending on your situation.

An Example

Let’s take the example of fictitious Mr. John Moore. In 2012, Mr. Moore invested $5,000 to purchase shares on the stock exchange. Since then, the value of his shares has tripled, and he could sell them for $15,000. As is his mother has been ill and hospitalized a few times at the Lakeshore General Hospital, he decides that he would rather use his shares to make a gift of appreciation to the Foundation. By donating the shares directly to the Foundation, he avoids the risk of being taxed on capital gains. In addition, Mr. Moore will benefit from an income tax receipt for his $15,000 donation, even if he only paid $5,000 … in 2012. This receipt will provide him with a charitable gift tax credit, which will reduce the amount of tax he has to pay.

In this example, taking the tax credit into account, Mr. Moore will end up having paid less than $5,000. However, the Foundation will receive a donation of $15,000, for the total value of his shares. It’s what we call getting a bigger bang for your buck!

To Get Started

If you are interested in this method of charitable giving, please email Natalie Lason (nlason.odi@ssss.gouv.qc.ca) or call 514-630-2081 ext 2.