Gifts of Stock, Securities (mutual funds) or other Capital Property
Donating stocks, securities or mutual funds directly to the rare Charitable Research Reserve is a more cost effective way of giving than selling the stock and making a cash donation.
Did you know…
…you can make gifts of stock to rare?
Making a gift of publicly traded securities, mutual funds or stocks is not only easier than you think, it can also allow you to make a larger gift to support the research, conservation and education programs at rare than you may have thought possible.
Judy decides to support the rare Charitable Research Reserve with a gift of $10,000. When reviewing whether she should sell her shares in a publicly listed corporation and then donate the case proceeds or donate the shares directly, Judy learns that she would have a greater net tax benefit by donating the shares directly to the rare Charitable Research Reserve. The chart below assumes a tax rate of 50 per cent.
|Sell shares and donate the gross proceeds||Donate shares directly|
|Market value of security||$10,000||$10,000|
|Taxable capital gain (50%)||$2,500||$0|
|Tax due on gain at 46%||$1,150||$0|
|Tax receipt for gift||$10,000||$10,000|
|Value of tax receipt at 46%||$4,600||$4,600|
|Net tax savings||$3,450||$4,600|
Example uses Ontario federal and provincial combined tax rate.
The information provided is general in nature and is not intended to be a substitute for professional legal or financial advice. Donors planning a significant gift are encouraged by the rare Charitable Research Reserve to seek independent legal and/or financial advice.
Gifts of stock or securities donated around the end-of-year holidays must be received by our broker on or before December 7 in order to ensure that the transaction can be completed before the December 31 deadline. You will receive a charitable tax receipt for the closing price of the shares on the day we receive them.