Funds will give new life to Regional Women and Children Program (RWCP) When Shirley Johnson had a tour earlier this year, she was inspired to make a grand donation to refresh an area of Orillia Soldiers’ Memorial Hospital (OSMH) that is near to her heart. She donated $10,000 to provide a facelift to the Family […]
GIFT OF SECURITIES
I literally saved thousands of dollars on my taxes by donating my stocks directly to the Foundation. It's easier than I thought.
A gift of publicly traded securities can provide you with the unexpected capacity to make a meaningful difference at OSMH. In 2006, the Government of Canada eliminated the capital gains tax on the donation of certain publicly-traded securities, including stocks, bonds, mutual funds, and exchangeable securities. This means that making a direct donation of securities to the OSMH Foundation is now the most effective way of minimizing taxes while also supporting the future of health care.
- Capital gains tax on publicly listed stocks and securities are exempt when you donate shares to a registered charity
- The value of your tax receipt will be based on the market closing price on the day the OSMH Foundation takes legal receipt of your stock or securities
- You can support OSMH through an unrestricted donation, or designate your gift to a particular program or area of interest to you
How Does it Work?
Making a gift of securities to the OSMH Foundation is very easy.
- When you contact us about your gift, our staff will provide you with our ‘Gift of Publicly Listed Securities’ transfer form, which will help initiate the transfer of securities. Simply call the Foundation office at 705-325-6464. Alternatively, you can directly download the transfer form here.
- You will need to complete the form and submit it to your broker or financial advisor to initiate the process. Please also advise the OSMH Foundation of the pending transfer by forwarding a copy of this form to us. A copy of this completed and signed form is required to ensure timely processing of your gift and to issue a charitable tax receipt.
- You will receive a tax receipt based on the closing price on the date when the shares are transferred to the Foundation’s account.
Here’s the difference between donating shares directly rather than writing a cheque after selling the shares. In this example, the donor is considering a gift of shares worth $25,000, with the original purchase price of $5,000. This donor makes $143,000 in income per year and as a result has a 46% marginal tax rate.
|Sell and Then Donate||Donate Securities Directly|
|Original Cost of Securities||$5,000||$5,000|
|Current Market Value||$25,000||$25,000|
|Tax on Capital Gains (Assuming marginal tax rate of 46%)||$4,600||$0|
|Donation Amount (after tax)||$20,400||$25,000|
|Charitable Tax Credit||$9,384||$11,500|
If the donor sells the shares then donates, they unnecessarily pay $4,600 to the tax man, and get a $9,384 tax credit. Alternatively, if the donor donates the shares directly to a charity, they pay $0 to the tax man and get a bigger tax credit of $11,500. Meanwhile, your charity of choice also receives a larger gift of $25,000.
This makes the most sense, especially if you are sitting on highly appreciated shares like Bell (BCE Inc.), Canopy Growth, Microsoft or Google where most of the sales proceeds could be capital gains.
The Orillia division of Allstate Insurance Canada quoted their way to a $1,000 donation to Orillia Soldiers’ Memorial Hospital. For every household who submitted a no-obligation home or auto quote, Allstate Insurance Canada – Orillia donated $25 to the Hospital to hit the campaign’s maximum of one thousand dollars. Orillia Allstate Insurance Manager Tammy Revie […]