A donation of publicly traded stock or securities is the most effective way you can support Parkinson Canada. These types of gifts are a win-win opportunity for donors because they eliminate capital gains taxes and at the same time support Parkinson Canada with an influx of capital that can be used to increase funding for Parkinson’s research.
The Canada Revenue Agency does not apply capital gains tax on donations of publicly traded stock or securities. Capital gains are the increase in the value of your securities over the price you paid at purchase.
If you donate your securities to Parkinson Canada, the capital gains aren’t subject to tax. This means Parkinson Canada receives a larger gift, and you will benefit from a tax receipt for the fair market value of your stock or securities on the date of transfer into our brokerage account.
You can download our Guidelines for Transferring Assets and the Letter of Authorization from Donor to Broker here.
How does it work?
Here’s an example of the benefits of donating stocks.
Consider a donor in the 46 per cent tax bracket (assuming a provincial tax rate of 17 per cent) who has already donated $200 this year to a charity (the first $200 of charitable donations allocates tax credits at a lower rate). Assume she donates stock worth $10,000, which is the current value of the shares with an adjusted cost base of $4,000.
|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||$0|
|Tax Savings on Gift||$0||$1,380|
Chart Source: CIBC Wood Gundy
If you are thinking about making a gift of stock or securities to Parkinson Canada, we encourage you to seek independent professional advice from a tax specialist or your financial advisor.
To explore the benefits of this type of giving, please contact Sue Rosenblat at 1-800-565-3000 ext. 3386, or PlannedGiving@parkinson.ca.