Give A Gift of Securities
Making a gift of publicly traded securities, mutual funds or stocks is simple.
Give a gift of securities
Giving a gift of securities – including stocks, bonds or mutual funds – can be a tax-effective opportunity to transform an asset into immediate impact on care at The Moncton Hospital.
When you transfer securities directly to The Moncton Hospital rather than sell them and donate the proceeds, you will eliminate any capital gains tax otherwise owed. You will also receive a valuable tax credit for the full value of the securities.
Publicly listed securities include stocks, bonds, mutual funds and segregated funds. When you sell or transfer ownership of securities, 50% of the gain is taxable with one important exception. In the case of a gift of qualifying securities to a registered charity such as the Friends of The Moncton Hospital Foundation Inc., there are no capital gains taxes.
As a donor, you would find it much more beneficial to donate your securities to the Friends as opposed to selling them and donating the cash. The illustration below compares these, assuming a combined federal and provincial tax rate of 40% and charitable tax credit of 47%.
Sell securities and donate cash
Donate securities
Market Value
Cost Base
Capital Gain
Taxable portion of Gain at 50%
Tax payable on gain at 40%
Cost of gift and tax Savings
Donation amount
Less: Charitable tax credit (47% of $10,000)
Plus: Tax payable on gain
Net cost of gift
Net tax savings
$10,000
$5,000
$5,000
$2,500
$1,000
$10,000
$4,700
$5,300
$1,000
$6,300
$3,700
$10,000
$5,000
$5,000
–
–
$10,000
$4,700
$5,300
–
$5,300
$4,700
And remember, the more highly appreciated your securities, the greater the tax advantage is!
For more information contact Aaron.McLean@FriendsFoundation.ca.
Every Donation Counts
Your donations help fuel innovation, provide revolutionary technology and support life-changing care at Thee Moncton Hospital.
