Give the Gift of Securities…
The stock market remains volatile, but there are still advantages for you to give a gift of securities to advance important health research.
The economic downturn has negatively impacted many donors’ portfolios. But the decline in the value of stocks and bonds does present an opportunity to give. Obviously the fair market value of gifts of many publicly traded securities will be lower than they were but it can be an advantage to donate the depreciated securities - particularly if you have realized substantial capital gains in the past three years, or foresee capital gains in the future.
The donation of securities will trigger a capital loss, which may be used to offset both past and future capital gains. The Income Tax Act allows capital losses to be carried back up to three years, and to be carried forward indefinitely. Thus, by triggering an immediate loss on the donation of securities, you realize a loss that will be available to reduce capital gains tax in the future.
We encourage you to seek the advice of your financial advisor to find out how giving to the important research happening at HSC can work for you in the good times as well as the bad. Please call us on (204) 787 2022 to discuss your gifts of securities.
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Example: $10,000 Donation
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Donate Shares
Directly to HSC
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Sell Shares & Donate Cash to HSC
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Current value/Donation Receipt
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$ 10,000
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$ 10,000
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Value when purchased(cost base)
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$ 2,000
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$ 2,000
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Capital Gain
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$ 8,000
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$ 8,000
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Taxable portion of Gain @50%
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$ 0.00
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$ 4,000
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Tax on Capital Gain @46.4%
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$ 0.00
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$ 1,856
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Cost of Donation to You
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$ 5,360
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$ 7,216
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Your Net Tax Benefit
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$ 4, 640
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$ 2,784
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The information provided above is for illustrative purposes only. Please consult your financial or legal advisor for tax-effective giving that is right for you.