Giving Gifts of Stock, It Still Makes Sense in This Market
Whether your portfolio has gone up or down, giving a gift of securities has never been easier. Simply call your investment advisor and tell them that you wish to donate to Peace Arch Hospital and Community Health Foundation. You and your advisor can choose the security you wish to donate by reviewing your portfolio and your current capital gains tax situation.
If you are donating appreciated securities, you will pay no capital gains tax. In addition, you can apply your charitable tax receipt against other income. In fact, donors can actually make money on their gifts if the charitable tax credit exceeds the cost of their original investment.
How does it work?
Here is a simplified illustration: Several years ago, Mrs. Jones paid $4,000 for shares in ABC Corp. and now they are worth $10,000, so she has a capital gain of $6,000.
By donating the shares to Peace Arch Hospital and Community Health Foundation she pays no capital gains tax. Mrs. Jones can then apply her charitable tax receipt of $10,000 against other income as a credit. At a marginal tax rate of 43.7%, she saves $4,370 in tax.
To sum up: Mrs. Jones donated securities that cost her $4,000 and she saved $4,370 in tax. She came out $370 ahead after supporting Peace Arch Hospital and Community Health Foundation with a gift of securities valued at $10,000.
If you choose to donate depreciated securities, you can offset past and future capital gains with capital losses to minimize any capital gains tax you pay. Remember, capital losses in Canada can be carried back three years and forward indefinitely to offset capital gains. In addition, you can apply your charitable tax receipt against other income.
In order to receive the special tax treatment associated with gifts of securities, the shares must be transferred to Peace Arch Hospital and Community Health Foundation, not sold first and the proceeds given. Download a copy of our share transfer form by visiting www.peacearchospital.com (Ways-to-Give / Estates-&-Securities section).
For any assistance, contact Stephanie Beck at 604–535-4520 or email .
About Peace Arch Hospital and Community Health Foundation
Peace Arch Hospital and Community Health Foundation is an independent charitable society that raises funds and awareness to enhance health and wellness in this community. Since its inception in 1989, the Foundation has raised more than $70 million, and the Partners in Caring Campaign, launched in 2007, has raised $23 million. One hundred percent of donor dollars goes to the designated project and 100 per cent stays in this community.
Media Contact:
Jackie Smith
Executive Director
Peace Arch Hospital and Community Health Foundation
Tel: 604-535-4520
