GIFTS OF SECURITIES

 

“The support The Darling Home for Kids provides goes beyond nurses caring for medically complex children. They save families.”

There have been important changes to the taxation of charitable gifts of securities. It is now even more tax-advantageous for you to make a gift of stock rather than cash and provides another way for you to invest in our mission.

Donations of securities let you make a greater impact with your donation. You can donate securities to a project at The Darling Home for Kids, or even our reserve fund administered by The Cedarbrook Society.  For example, some of Canada’s most prestigious companies are in the midst of ownership changes. In considering your options as a shareholder, don’t forget that donating a gift of stock gives you a great opportunity to help families in our communities caring for medically complex children.

If this method works for you, the easiest way to make a gift of stock is to have the shares electronically transferred from your account to The Cedarbrook Society account. The receipt value is for the closing trading price on the day that the shares are received into The Cedarbrook Society’s account. You will receive a tax receipt for the fully appreciated value of the donation and will no longer pay any capital gains tax.

The chart below shows the tax advantage to donating the shares directly to The Cedarbook Society o/a The Darling Home for Kids vs. selling the shares and then donating the cash proceeds to The Darling Home for Kids. That being said, if you need help with the process, we do have a representative that is ready to walk you through the process.

Option 1

Sell Shares and Donate Cash

Option 2

Donate Shares Directly

Fair Market Value $10,000 $10,000
Cost Basis $5,000 $5,000
Capital Gain $5,000 $5,000
Taxable Capital Gain (50%) $2,500 $0
Tax Due on Gain at 46% $1,150 $0
Tax Receipt for Gift $10,000 $10,000
Value of Tax Receipt at 46% $4,600 $4,600
Net Tax Savings $3,450 $4,600

Donating securities to The Darling Home for Kids involves two easy steps:

1.  Complete our Securities Transfer Form. Download the form [here]. Once you send it in, we will provide you with our brokerage account information so you or your broker can transfer the securities. Please note that the Securities Transfer Form does not initiate the transfer of the securities.

2.  Instruct your broker to transfer your securities to The Darling Home for Kids’ brokerage account. Please do not transfer securities without notifying us first, so that we can ensure the process is handled smoothly. You will receive a charitable tax receipt for the closing price of the securities on the day that they are received in The Darling Home for Kids account.

For any questions or assistance, please do not hesitate to contact Shannon Caskey at 905-878-7673.

Please note: Due to the administrative costs of processing securities donations, the minimum gift for a donation of this type is currently $1,000. We thank you for your understanding.

*While all information on this page is accurate to the best of our knowledge, please consult your financial or tax advisor for advice specific to your personal portfolio or situation. The numerical example is for illustrative purposes only.