In 2006 the Federal government introduced a special tax incentive on gifts of Publicly Traded Securities and Mutual Funds. An individual can make a donation of publicly traded securities to the Ontario SPCA and eliminate the capital gains tax. If a donor owns stocks or mutual funds that have grown in value, they will face a tax bill when sold. By donating them directly to the Ontario SPCA the donor can eliminate their tax bill and make a significant gift at the same time.
Benefits of a Gift of Publicly Traded Securities or Mutual Funds Include
Opportunity– An opportunity to make a significant gift.
Tax Advantages – By donating appreciated securities or mutual funds directly to the Ontario SPCA capital gains taxes are eliminated.
Simple and Convenient – Securities are easy to transfer. The donor’s broker transfers shares from their account to the Ontario SPCA brokerage account. The date of the donation is the date the securities are received in the Ontario SPCA’s account.
Recognition – The donor’s gift can be honoured during their lifetime.
How does it work? A donation receipt is issued for the fair market value of the security on the date the securities are received in the Ontario SPCA’s account. The securities must be transferred to the Ontario SPCA and not sold by the donor. The gift will not qualify for the capital gains tax elimination if the securities are sold and the cash then gifted to a charity. Visit www.donatestock.ca for detailed information on the donation process, tax benefits and the donation calculator.