What are gifts of securities?
To encourage charitable giving, the Canadian government provides you with a tax credit when you donate to a registered charity, which can be used to reduce your taxes payable.
And, a further tax benefit is provided if you donate certain securities-in-kind, such as:
Shares listed on a designated stock exchange;
Mutual funds;
Interest in related segregated funds;
Government of Canada or provincial government bonds.
These gifts can be given during your lifetime or after, through your estate.
What are the advantages to donating securities?
When you donate publicly traded securities, in addition to getting a donation tax receipt for the fair market value of the securities donated, any capital gains you have accrued on the donated securities may also be eliminated.
If you plan on donating, have your advisor review your portfolio to determine if there are any securities with large capital gains. Speak with your qualified tax advisor to determine whether it makes sense for you to donate securities with accrued capital gains.
For more information on gifts of securities contact Toni Andreola, Donor Advisor at Toni.Andreola@LCHHFoundation.com or call 672 879 2394.