A gift of eligible securities to a registered charity is one of the most tax effective ways to give. Eligible securities include publicly listed stocks, bonds, mutual fund units or exchange traded funds on approved stock exchanges in Canada and internationally. If you make a gift of eligible securities, it is exempt from capital gains tax, which applies to the increase in the value of the securities over what you paid to acquire them.
Here’s how it works
- You make a gift of eligible securities directly to the parish.
- You receive a charitable donation receipt for the fair market value of the securities.
- Your gift is exempt from any capital gains tax on the appreciated value of the securities.
- The parish will add the securities to its investment portfolio.
Here is an example of potential tax advantages of donating the securities vs. selling the securities and donating the proceeds:
| Sell securities & donate proceeds | Donate securities | ||
| Fair market value donation receipt | $10,000 | $10,000 | |
| Adjusted cost base | $5,000 | $5,000 | |
| Capital gain | $5,000 | $5,000 | |
| Taxable capital gain (50% of $5,000) | $2,500 | $2,500 | |
| Tax on gain (@45%1) | $1,125 | $0 | |
| Charitable tax credit (@45%2) | $4,500 | $4,500 | |
| Net cost of donation | $6,625 | $5,500 |
1 Assumes a 45% combined federal/provincial rate. Rates vary by province.
2 Net cost equals $10,000 less charitable tax credit plus capital gains tax.
These are general figures for the purposes of illustration. They do not constitute legal or financial advice. We recommend you seek appropriate professional advice before deciding on your charitable gifts.
What else do you need to know about donating securities to St. Joseph’s Parish?
Donations can be made by filling out a form you can obtain from the Parish Office or download the form as a PDF file here: OMI-St-Peters-Province-St-Josephs-Draft-Donation Form-2020-10-20. We use the form to obtain your authorization for the donation and the information needed to complete it.
