When you donate securities there’s even more to gain!
Jack and Lynn Brooks
Ontarians Jack and Lynn Brooks had been donating to Plan since 1982 when Lynn gave Jack the gift of sponsoring a child. But it wasn’t until their daughter, who works as an accountant, suggested they consider donating securities to Plan that they discovered there was a more tax-effective way to make their donations count.
Realizing they could continue to support a cause close to their heart while eliminating capital gains tax they called Plan Canada. After completing a simple form, they were all set to capitalize on this tax-smart giving option.
How it works:
In May 2006, the Canadian federal government eliminated the capital gains tax on donations of securities to charities.
The types of securities you can donate include:
- Mutual funds
You can even select the Plan initiatives that your securities will support, including child sponsorship, Gifts of Hope, priority projects or general funds or an endowment fund.
“It’s a very simple process” said long-time donor Jack Brooks. “The charity sells the stock and receives cash. The donor receives a receipt for the full value realized, and does not pay any tax on the capital gain portion of the value realized,” he explained.
Step 1) Contact Plan Canada to donate your publicly-traded shares or mutual funds
Step 2) Complete a simple form and instruct your broker to transfer the securities to Plan Canada’s broker.
Step 3) Plan sells the stock and receives the current value
Step 4) You receive a tax-receipt for the full closing value of the stock on the day Plan’s brokers receive them – without having to pay any capital gain!
Step 5) With your donation, Plan will help transform the lives of children and families in the developing world
Not only are you helping Plan to change the world, you receive a tax receipt for the closing value of the securities on the day Plan’s brokers receive them. You also avoid having to pay capital gain, making a gift of securities a logical alternative to giving cash.
Donor Lynn Brooks explains how this donation option positively impacts the donor, as well as the recipient. “Jack and I are both retired now and it’s an excellent way to donate to organizations that we feel quite strongly about,” she said. “We pick a stock that will realize quite a bit of gain and donate it to charity. It’s a win-win.”
Bill Miller, another Plan donor who – having donated gifts of securities to Plan Canada since 2007 – feels this method of giving is a particularly fruitful one. “I feel I'm gaining twice: once not paying capital gains and twice being able to claim a charitable deduction against my other income, thus reducing my overall tax bill.”
To arrange your gift, or for more information, please contact Karobi Ray, CFRE , toll-free at 1-800-387-1418 ext. 292 or 416-920-1654 ext. 292 or email firstname.lastname@example.org