NOW YOU CAN "BUY LOW AND GIVE HIGH" BY GIVING SECURITIES
In 2006, Revenue Canada gave Canadians a new incentive to give generously to charitable causes with the announcement of the elimination of capital gains tax on gifts of publicly traded securities (stock, bonds, mutual funds).
Making your gift to Bluewater Health Foundation in the form of appreciated securities allows you to reduce the cost of your gift both in terms of your cash outlay, and through tax savings. Here’s how it works: Let’s assume that you are considering a gift of shares worth $10,000, and that the original purchase price was $2,000. Let’s assume you are in the top tax bracket (46.4%).
Gift of Shares
Sale of Shares and Gift Cash Proceeds
Fair Market Value of Shares
$10,000
$10,000
Original Purchase Price
$2,000
$2,000
Capital Gain
$8,000
$8,000
Taxable Capital Gain @ 50%
$0
$4,000
Donation Tax Credit @ 46.4%
$4,640
$4,640
Tax on Capital Gain @ 46.4%
$0
$1,856
Net Tax Savings
$4,640 – 0 = $4,640
$4,640 - $1,856 = $2,784
Your gift of securities is valued as of the day the securities reach our account.
It is quick and easy to transfer your gift to Bluewater Health Foundation.For information or assistance in arranging your donation, please contact Karen Holmes, Senior Development Officer, Bluewater Health Foundation at: 519-464-4439 or email
