Gifts of Securities
What is a Gift of Securities?
Donating publicly traded stocks, bonds, mutual funds, or other securities is a tax-smart way to support The Children’s Foundation without using cash on hand. When you donate your publicly traded securities directly to a charity, you eliminate the capital gains tax normally paid if you sold the securities and then donated the proceeds.
Donating securities is easy! The simplest way to make your gift of securities is to have them electronically transferred from your brokerage account to The Children’s Foundation brokerage account. The form can be found below.
You will receive a receipt for income tax purposes for the full appreciated value of your donation of publicly traded stock or securities—similar to when you donate cash gifts.
You can donate securities immediately or as part of your estate and will planning.
For more information on making a Gift of Securities to The Children’s Foundation, please contact:
Melanie Cressman, Executive Director
613.962.9292 ext. 5
Melanie.Cressman@thechildrensfoundation.ca
The chart below shows your tax savings when you donate shares directly to The Children's Foundation instead of selling them and donating the cash proceeds. This calculation assumes a tax rate of 50%.
Sell Shares and Donate Cash | Donate Shares Directly | |
|---|---|---|
Fair market value | $10,000 | $10,000 |
Cost basis | $2,000 | $2,000 |
Capital gain | $8,000 | $8,000 |
Taxable gain | $4,000 | $0 |
Tax credit (at 50 %) | $5,000 | $5,000 |
Tax on gain (at 50%) | $2,000 | $0 |
Tax savings | $3,000 | $5,000 |
The information provided is general in nature and is not intended to be a substitute for professional legal or financial advice. The Children's Foundation encourages all donors who are planning a significant gift to seek independent legal and/or financial advice.