The benefits of making a gift of securities to St. John’s Rehab Foundation
All donations of publicly listed securities to charities like St. John’s Rehab Foundation are now exempt from capital gains tax. This is great news because donors receive a tax receipt for the full value of their shares but are not taxed on any gain.
Below for your reference is an example of how this new tax benefit can work for you while contributing in a major way to the advancement of specialized rehabilitation care for our patients. Securities will be valued for receipting purposes at the closing market price on the day they are received by the foundation.
| What is the net tax benefit of a $100,000 donation? ** |
Gift cash |
Sell shares and gift cash |
Gift the shares: tax on capital gain is eliminated |
Donation*
|
$100,000 |
$100,000 |
$100,000 |
Cost
|
100,000 |
1,000 |
1,000 |
Capital gain (proceeds less cost)
|
N/A |
99,000 |
99,000 |
Tax on capital gain
|
|
(22%)
21,780 |
(0%)
Nil |
Donation tax credit
|
(45,000) |
(45,000) |
(45,000) |
Net tax savings from donation (available to shelter other income from tax)
|
$45,000 |
$23,220 |
$45,000 |
* For illustration purposes, this example assumes a combined federal and provincial marginal tax rate of 45%. To determine your tax benefit, please contact your financial planner or accountant.** This example was excerpted with permission and with some modification from “Charitable Giving Guide for Individual Donors” © 2005 PricewaterhouseCoopers LLP, Canada.How do I make a gift of securities?St. John’s Rehab Foundation has a simple process in place to receive gifts of securities. Please complete the share transfer form and fax it to St. John’s Rehab Foundation at (416) 226-9276.
If you have any questions about making a gift of securities, please contact the Foundation at 416-224-6945.
Thank you for helping people rebuild their lives! |