Donating Stocks and Bonds
Did you know that you can donate stocks and and bonds and get a tax receipt for a charitable donation AND pay no Capital Gains Tax. Ideal for gifts or bequests to CNETS Canada, or even to lock in stock/bond losses to offset gains. It's a win win.
Why give a gift of stocks?
Making a gift of publicly-listed securities such as stocks or bonds to CNETS Canada can offer an attractive investment in research for carcinoid patients. There are now significant tax advantages in donating your shares in stocks or bonds directly to a charity like CNETS Canada, rather than selling the investments and donating the proceeds.
A charitable donation of publicly-traded securities such as stocks or bonds results in a tax receipt for 100% of the value of the gift on the day of the transfer. By providing a larger potential deduction than an equivalent gift of cash, this option allows you to maximize your charitable giving.
Tax advantages of gifts of stock
As of May 2, 2006, you are exempted from any capital gains tax on a charitable gift of publicly traded stocks or securities.
How it works is this: you might wish to make a charitable gift of $10,000 by selling or donating stocks that cost you $4,000 to purchase, with a capital gain of $6,000. If you sell the stocks and donate the proceeds, you would claim a charitable tax credit for your donation but would also be assessed capital gains tax on 50% of the increase in value of the stocks. BUT by donating the stocks directly to CNETS Canada, you get the charitable tax credit for the donation AND you are exempted from any capital gains tax.
The direct donation option in the example provided could result in a reduction in capital gains tax of up to $1,400, depending on your tax bracket and place of residence.*
Vernon Holt, our Treasurer would be pleased to assist you with your donation of stocks. Please email Vernon or call (613) 933-0176.