Thank you for considering giving CHEER, CAPE’s charitable wing*, a gift of stocks, bonds, mutual funds, or other securities. We recommend you first speak with your Financial Advisor to determine the best course of action for any charitable gifts of stock or other securities.
To make your gift of securities…
- Complete our Gift of Securities Transfer Form
- Email your completed form to our Fundraising Director Vera Krutzler at firstname.lastname@example.org
- Instruct your broker to transfer the securities to CHEER’s account. Our account information can be found on the Gift of Securities Transfer Form.
Once we have received your gift of securities we will send you a tax receipt for the full market value of the securities at the closing price on the day they were received by CHEER.
If you have any questions, please contact Vera Krutzler at (416) 306-2273 ext. 3 or email@example.com
Why give a gift of securities?
If you cash your securities and then give them as a gift, you will have to pay capital gain taxes. Capital gain taxes are the taxes applied to the increased value of securities. Paying them reduces the gift your charity will receive, and reduces your claim for charitable tax credit.
If you give securities directly as a gift, the charity receives the full amount to put towards their cause. You will also be able to claim a larger amount in charitable tax credit.
Here is an example of how it works:
Say you buy shares for $1,000. When their current market value reaches $5,000 you decide to donate them to a charity. The capital gain on these securities is $4,000 ($1,000 capital + $4,000 capital gain = $5,000).
If you sell them before donating them, you will have to pay $920 in capital gain taxes on the $4,000. This means the amount you can donate to the charity after tax is $4,080. At the end of the year you will only be able to claim $1,876.80 in charitable tax credit on this donation.
On the other hand, if you donate the securities directly to the charity, you will not pay any capital gain taxes. This means your donation will be the full $5,000, and you will be able to claim $2,300 in charitable tax credit.
The example above can be summed up in this chart:
Above chart courtesy of Canada Helps.
Please contact us for further information:
Vera Krutzler, Fundraising Director
Downloadable Transfer form:
Gift of Securities Transfer Form
Please note: in order to receive these tax benefits for your gift, your donation must go to CAPE’s charitable wing, CHEER.