It’s a meaningful way to make a significant donation to Michael Garron Hospital, either as an outright gift during your lifetime or as part of a legacy gift. And it demonstrates your commitment to ensuring that our East Toronto community remains healthy, vital and strong.
Donating your securities directly through Michael Garron Hospital allows you to donate the full value, and results in a charitable tax credit that you may be able to use to offset other income.
Usually, when you sell shares for cash, even if you plan to donate the proceeds to charity, you’re responsible for paying tax on 50 percent of the capital gain. But if you donate the securities directly to Michael Garron Hospital Foundation, you don’t pay capital gains tax.
How it works:
Here’s what the tax advantage could look like if you donated the share directly to Michael Garron Hospital Foundation, versus selling the share and then donating the cash proceeds.
|
|
Sell shares and donate cash |
Donate shares directly |
|
Charitable donation receipt |
$10,000 |
$10,000 |
|
Tax credit/savings on gift (at 45%) |
$4,500 |
$4,500 |
|
Capital gain ($10,000 - $4,000) |
$6,000 |
$6,000 |
|
Taxable portion of gain |
$3,000 (50% x $6,000) |
$0 (0% x $6,000) |
|
Tax on gain (at 45%) |
$1,350 |
$0 |
|
Tax credit / savings on gift |
$4,500 |
$4,500 |
|
Capital gains tax paid |
$1,350 |
$0 |
| Net tax savings | $3,150 | $4,500 |
You gain $1,350 in tax savings when you donate shares directly to Michael Garron Hospital Foundation versus selling your shares and donating the cash.
Ready to get started?
Start by consulting with your financial advisor to decide what makes most sense for your financial and philanthropic goals. Then complete the transfer form and ask your broker to transfer your securities to Michael Garron Hospital Foundation.
Once you’ve made your gift, let us know so that we can show our appreciation.
Resources:
Giving gifts of stocks and securities
Gifts of securities transfer form
CRA Charitable Registration Number
119259448 RR0001
Organization name:
Michael Garron Hospital Foundation