Share Donation
Making A Gift Of Securities
Following the elimination of capital gains on donations of publicly traded securities, a gift of securities is now the most tax efficient way to make a charitable donation to the Toronto City Mission and a great way for you, our donor, to make a greater impact with your gift. Click here to download a Share Donation form.
Tax Laws Benefit Gift of Securities Donors:
In May 2006’s Federal Budget, publicly listed securities to charitable organizations became exempt from any capital gains tax. The 2008 Federal Budget includes an amendment to the tax law, adding exchangeable shares to the list of securities that the tax treatment already applies to, including:
Shares listed on most Canadian and certain foreign stock exchanges
Shares of the capital stock of a Canadian public mutual fund corporation
Units of widely held Canadian mutual fund trusts
Interest in related segregated fund trusts
Prescribed debt obligations
Other Benefits Of Donating A Gift of Securities:
When donating a gift of securities to the CCFC you will receive a tax receipt for the fair market value of the donation in the amount of the closing trading price on the day CCFC receives the security. And, again, your donation is exempt from the capital gains tax that typically applies to the sale of a security.
An Example Of The Tax Benefit Of Donating Securities To Toronto City Mission:
| Option A Sell your securities and donate the cash |
Option B Donate securities directly to the TCM |
|
| Market value of security | $10,000 | $10,000 |
| Cost base | $5,000 | $5,000 |
| Capital gain | $5,000 | $5,000 |
| Taxable capital gain (50%) | $2,500 | $2,500 |
| Tax due on gain at 46.41% | $1,160 | $0 |
| Tax receipt for gift | $10,000 | $10,000 |
| Value of tax receipt at 46.41% | $4,641 | $4,641 |
| Net tax savings | $3,481 | $4,641 |
The above example is based on Ontario federal and provincial combined tax rate.
How To Make A Gift Of Securities To Toronto City Mission:
To donate Gifts of Securities to the Toronto City Mission, please click here to download and print the donation form. Or for more information, please contact us at mpryce@torontocitymission.com.
