Make a Gift of Stock
Donating publicly traded securities and mutual funds not only has an impact on the lives of athletes across the country, but it allows you to amplify your impact.
By donating securities you receive a double tax benefit – you eliminate the capital gains tax that is payable on selling appreciated securities, and you receive a charitable tax receipt for your donation. A gift of securities benefits you more than giving cash, and allows you to make a larger gift. Donating publicly traded stocks, bonds, mutual funds and other securities is a tax-smart way to support Special Olympics Canada while enhancing your charitable gift.
Donating securities is easy! Simply fill out the Securities Donation Form to have your brokerage electronically transfer your gift of stock or securities from your account to Special Olympics Canada’s account. You will receive a tax receipt for income tax purposes for the full appreciated value of your securities on the day that they are received.
There are a few key elements to making a successful gift of marketable securities.
- The gift must be of “qualified” appreciated securities (including shares, mutual fund shares, segregated fund shares, bonds, warrants), and options listed on a prescribed stock exchange.
- The donor must transfer the securities to Special Olympics Canada in kind without selling them. If the donor sells the securities before transferring, standard capital gains tax rules apply to the disposition (50% of the gain rather than 0%).
- Shares can be transferred with directions in writing and there is no limit on maximum or minimum share value.
The following example illustrates the tax saving for a gift of shares compared to a gift of cash.
Donate shares directly |
Sell shares and donate cash |
|
| Today’s Selling Price | $50,000 | $50,000 |
| Original Price | $10,000 | $10,000 |
| Capital Gain | $40,000 ($50,000 current price minus $10,000 purchase price) |
$40,000 ($50,000 current price minus $10,000 purchase price) |
| Tax on Capital Gain |
$0
|
$10,700 |
| Tax Credit |
$25,200 |
$25,200 |
| Net Cost of Gift | $24,800 ($50,000 donation - $25,200 tax credit) |
$35,500 ($50,000 gift + $10,700 capital gains - $25,200 tax credit) |
|
TOTAL TAX SAVINGS |
$35,900 | $25,200 |
*Scenario for illustrative purposes only
**Assumes donation made in Ontario using top marginal tax rate of 53.5% and top donation credit rate of 50.4%
Next steps
- Contact your financial advisor to decide which investments make the most financial and philanthropic impact.
- Ask your broker to transfer your securities to Special Olympics Canada using the Securities Donation Form.
- Special Olympics Canada will sell the stock and receive the current value.
- You will receive a tax receipt for the full closing value of the stock on the day Special Olympics Canada’s brokers receive them without having to pay any capital gain.
Please contact your financial advisor or Daniella Sretenovic at dsretenovic@specialolympics.ca call 1 888 888 0608 x4406 prior to your planned transfer of shares, to discuss the shares being considered.
Charitable Gift Annuities
When you purchase a Charitable Gift Annuity, you receive tax-free income, while immediately supporting athletes with an intellectual or developmental disability. There are multiple ways to make a gift to Special Olympics Canada including: Endowments, Charitable Remainder Trusts, Gifts of Property and other Gifts-In-Kind. You should always consult your financial and legal advisers before making a gift of securities or charitable annuities.
Disclaimer: This information is general in nature and does not constitute legal or financial advice. Special Olympics Canada recommends that before making any gift of securities of any size, a donor consults with his/her professional financial advisor(s) for the tax, financial and/or estate planning implications. Individual circumstances differ and you are strongly encouraged to discuss with your own financial counsel to ensure your gift decisions are appropriate to your situation.