Effective May 2, 2006… the federal budget eliminated the capital gains tax on a gift of publicly-traded securities to public charities (charitable organizations and public foundations). This will provide donors with excellent tax savings for securities donations.
Stock and Security Donations
You may have stocks that have risen in value. By donating them to the Victoria Hospital Foundation you will no longer have to pay the capital gains tax. To qualify you must gift the shares to the The Victoria Hospital Foundation rather than sell the shares and donate the cash. The Victoria Hospital Foundation will sell the shares converting them to cash usually on the day they are received into our stock account or the following business trading day. The Victoria Hospital Foundation will then issue a Charitable Tax Credit Receipt for the value of the stocks you have donated
You may wish to donate a portion of your stocks to wipe out the capital gains due and keep the rest of the funds for yourself.
You might want to purchase or assist with the purchase of a piece of equipment for the hospital. You could make your donation in stocks and a leave your savings untouched.
What CRA Considers A Publicly Traded Security
• shares, debt obligations or rights listed on designated stock exchanges in Canada and internationally
• shares of capital stock of a mutual fund corporation
• units of a mutual fund trust
• interests in related segregated fund trusts (an investment fund relating to an insurance policy)
• prescribed debt obligations
• partnership interests that are exchangeable for publicly traded securities (certain circumstances only)