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One of the most financially sound ways to support World Vision programs is with the gift of securities. Thanks to changes in Canadian tax laws in May of 2006, when you donate stocks, mutual funds and other securities to a registered charity, you pay no capital gains tax and receive a tax receipt for the full amount of the gift. It means a great tax break for you and a world of change for communities in need.
Tax advantages
Usually when you sell a security, you’re required to pay tax on 50 percent of the capital gain. But when you transfer that same security directly to a charity like World Vision, there’s no tax on the capital gain realized. This is a tremendous incentive to give securities as a gift now to ease your own tax burden, or as a deferred gift in your will to offset the tax against your estate.
How to donate securities
Depending on whether you hold your securities with a broker or as physical documents (i.e. stock certificates), you may donate them electronically or by physical delivery. For electronic transfer, please contact your broker and fill out a Security Transfer Form.
If you hold shares in certificate form, you may fill out the Letter of Authorization form and either hand deliver, courier, or send them by registered mail to World Vision Canada’s office.
Click here for more details on how to make a gift of securities.
How you benefit
|
Sell shares and gift cash to charity |
Gift shares directly to charity |
| Current market value of stock and amount of tax receipt |
$100,000 |
$100,000 |
| Cost base |
$20,000 |
$20,000 |
| Capital gain realized ($100,000 - $20,000) |
$80,000 |
$80,000 |
| Taxable capital gain (50% of $80,000) |
$40,000 |
$0 |
| Tax due on gain (46% of $40,000) |
$18,400 |
$0 |
| Donation tax credit (46% of $100,000) |
$46,000 |
$46,000 |
| Net tax savings from donation (tax credit minus tax due) |
$27,600 |
$46,000 |
*Assumes donor at 46% marginal tax rate
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Contact World Vision's Partners Planned Giving team at 1.800.714.3280 (ext. 3837)
Email: plannedgiving@WorldVision.ca
Mail: 1 World Drive, Mississauga ON L5T 2Y4
Fax: 905 696 2162
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