Gifts of Stocks & Securities


Help us unlock the mysteries of Parkinson’s disease

If you own stocks or mutual funds that have grown in value, you are required to pay tax on 50% of the capital gain. However, if you donate the securities to charity, you pay no capital gains tax, and receive a charitable tax receipt that entitles you to additional tax savings. Brenda Crocco shares why this form of giving was right for her in A Gift From the Heart. Benefits and additional information.

To make a gift of securities, please see the Guidelines for Transfering Assets:
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How does it work?

Important! The securities must be transferred to Parkinson Canada and not be sold by you, the donor. The gift will not qualify for the capital gains tax elimination if the securities are sold and the cash is then gifted to Parkinson Canada. A donation receipt is issued for the fair market value of the security on the date of transfer into our brokerage account.

Consider a donor in the 46% tax bracket (assuming a provincial tax rate of 17%) who has already donated $200 this year to a charity (the first $200 of charitable donations attracts tax credits at a lower rate). Assume she donates $10,000, which is the current value of the shares with an adjusted cost base of $4,000.

Eliminate the Tax!
 

Sell Shares and Donate the Cash

Donate Shares Directly

Market Value of Securities

$10,000

$10,000

Adjusted Cost Base (securities original cost)

$ 4,000

$ 4,000

Capital Gains ($10,000 - $4,000)

$ 6,000

$ 6,000

Tax on Capital Gains @ 46% tax bracket

-$1,380 paid out in taxes

$ 000

Tax Savings on Gift

$ 000

$ 1,380

Chart Source: CIBC Wood Gundy

To explore the benefits of this type of giving, please contact:
Steve Nash at 1-800-565-3000 ext.3378, or Sue Rosenblat at 1-800-565-3000 ext. 3386, or planned.giving@parkinson.ca.