Donations of publicly listed securities are exempt from the capital gains tax, making this one of the most attractive ways to support VON Canada. If you donate securities to VON Canada directly, you will not pay any capital gains tax normally associated with the sale of securities. You will receive a tax receipt for the full value of the donation but you are NOT taxed on any gain.
VON Canada can accept different types of securities, including bonds, publicly listed securities and mutual fund units.
We recommend that you consult your financial advisor before making this type of donation, to get professional advice tailored to your personal financial and tax situation.
To get started, print this form (PDF) for Charitable Donations of Securities/Mutual Funds, and contact your broker or financial advisor.
For more information, or to make a gift of securities today please contact us: Toll-Free: 1-888-866-2273 ext. 3489, Email: firstname.lastname@example.org
Example for an individual who donates shares versus cash:
Mr. Williams would like to donate $10,000 to VON Canada. The shares he owns of Imperial Oil have a fair market value of $10,000 and an original cost of $100.
Mr. William’s total tax rate is 45% (22% on capital gain). He is deciding between selling the shares and donating the cash or transferring the shares directly to VON Canada.
The net tax benefit for Mr. Williams is determined as follows:
|Sell shares and donate cash||Donate shares|
|Income tax on capital gain||$2,178||$0|
|Donation tax credit||-$4,500||-$4,500|
|Net tax (benefit) from donation||-$2,322||-$4,500|