Donation of Securities
You may wish to consider donating shares of a publicly traded security or mutual fund directly to Project Canoe. If your shares have increased in value, 50% of the capital gain is taxable as income. However, by transferring the shares directly to a charity, the capital gains tax does not apply. The table below illustrates the difference between selling shares outright and donating the proceeds, versus transferring the shares in-kind to Project Canoe.
|
Sell securities and donate proceeds |
Donate securities directly to Project Canoe |
|
|
Proceeds of sale |
$40,000 |
$40,000 |
|
Initial cost of securities |
$20,000 |
$20,000 |
|
Capital gain (1-2) |
$20,000 |
$20,000 |
|
Taxable capital gain |
$20,000 x 50% = $10,000 |
$0 |
|
Donation receipt |
$40,000 |
$40,000 |
|
Tax owing on capital gain |
$10,000 x 50% = $5,000 |
$0 |
The above example assumes a personal income tax rate of 50%. In this scenario, $5000 is saved by donating shares directly to charity.
The dollar value of your tax receipt is determined by the closing price of the security on the day the shares are received by Project Canoe.
Transferring Securities to Project Canoe
To transfer securities directly to Project Canoe please visit our securities donation form. If your investments are held at a financial institution, you will need to instruct your adviser or broker to transfer shares from your account to Project Canoe's account. Project Canoe will provide you with the information your financial institution will need to complete the transaction. If you hold your investments in certificate form, please contact Project Canoe to arrange for delivery.
For more information please contact Gillian Burt: E-mail: info@canoe.org Phone: 416-778-4311