A gift of publicly-listed securities such as stocks or mutual funds to Victoria Cool Aid Society can offer an attractive investment in a better future for vulnerable people in our community that also maximizes your tax benefits.

We would love to talk to you and explain how it works… or read on.

There are significant tax advantages in donating your shares in stocks or options directly to a charity like Victoria Cool Aid Society (charity #12820 5069 RR0001), rather than selling the shares and donating the proceeds. A charitable donation of publicly-traded securities such as stocks, mutual funds, bonds or futures results in a tax receipt for 100% of the value of the gift on the day the shares are received into the brokerage account of the recipient organization. At the same time, it eliminates your paying any capital gains tax on your appreciated securities. A considerable tax savings. By providing a larger potential tax deduction than an equivalent gift of cash, this option allows you to maximize your charitable giving while caring for those you love.

The most effective way to donate publicly-traded securities to Cool Aid is to have them electronically transferred from your brokerage account to the Victoria Foundation’s brokerage account as a charitable gift for the purposes of Victoria Cool Aid Society. Victoria Foundation staff will facilitate your generous gift to ensure Cool Aid receives the proceeds. Gifts of securities to the Victoria Foundation must be accompanied by the Victoria Foundation Donation of Securities Form which may be accessed online. Please call Alan Rycroft at 250-414-4781 to arrange.

Take Advantage of Gifts of Stock

For example, you might wish to make a charitable gift of $10,000 by selling or donating stocks that cost you $4,000 to purchase, with a capital gain of $6,000. If you sell the stocks and donate the proceeds, you would claim a charitable tax credit for your $10,000 donation but would also be assessed capital gains tax on 50% of the $6,000 increase in value of the stocks.

By donating the stocks directly to Victoria Cool Aid Society, you get the charitable tax credit for the $10,000 donation without paying any capital gains tax at all. The direct donation option in this example would result in a reduction in capital gains tax of up to $1,400, depending on your tax bracket. (Source: Department of Finance Canada, Budget 2006, Eliminating Capital Gains Tax on Donations to Charities, May 2, 2006.)

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For assistance concerning donations of securities, please contact: