There are tax advantages to donate securities to charities
If one owns shares that are traded in the Stock Exchange, and if these shares have increased in value over time; if one decides to sell these shares, one must pay tax on the amount of the increase (called Capital Gain).
The Government of Canada has decided to exempt this Capital Gain from income tax if the securities are donated to a registered charity.
The donated securities (e.g.: shares) are considered Non-cash gift. The charity can issue an official receipt for the value of the gift on the date the shares were received in the charity’s account.
There is, therefore, a tax advantage to donate such securities to the charity rather cash.
As our Church is raising funds for the Major Church Renovation Project, we thought to bring this incentive to your attention. This may be used for donations to the Major Church Renovation Project as well as to the other operating funds for congregational purposes.
Gifts by will
In fact it is also interesting to know when planning to bequest securities to the church, or if the donation is made from the estate of an individual, the estate will benefit from the capital gains exemption.