GIFT OF SECURITIES DEADLINES
In order to receive a 2011 tax receipt for your gift of publicly traded stocks, mutual funds, or bonds, please initiate the transfer by December 23 for stocks and December 14 for mutual funds.
If you want your congregation to receive your gift by the end of December, please initiate your transfer no later than December 2.
Please contact Foundation staff at 866-340-8223 with any questions you may have.
Since May 2006, a charitable gift of stocks or mutual fund units has been free of tax on the capital gain. This gives you an extraordinary opportunity to save tax dollars even while making a generous gift to the Foundation's Living Spirit Endowment Fund or Mission Focus Funds, establishing your Personal Endowment Fund, or supporting your congregation and other charities through a Foundation Gift Fund.
Here's the difference it makes to give shares rather than writing a cheque after selling the shares. Let's assume that you are considering a gift of shares worth $50,000, and that the original purchase price was $25,000. Let's also assume you are in the top tax bracket (46%).
| Giving shares | Writing a cheque after selling shares |
|
| 1. Value of the shares | $50,000 | $50,000 |
| 2. Original purchase price | $25,000 | $25,000 |
| 3. Capital gain | $25,000 | $25,000 |
| 4. Taxable gain at 50% | $0 | $12,500 |
| 5. Donation tax credit at 46% | $23,000 | $23,000 |
| 6. Tax on capital gain at 46% | $0 | $5,750 |
| 7. Net tax savings | $23,000 - 0 = $23,000 | $23,000 - $5,750 = $17,250 |
| 8. Donation receipt | $50,000 | $50,000 |
Transferring the shares electronically is a simple process:
- Talk to us first to let us know what to expect, by calling 1-866-340-8223 or e-mailing fdn@united-church.ca. We will answer your questions and prepare any draft gift agreement that is needed.
- Download this transfer form, which can be used for securities or mutual fund units, complete it and take it to your broker. You'll see that we're asking for some basic information during the download, just to make sure we have all the facts we need to handle your gift efficiently.
- Your broker must submit the form to his or her back office and then fax a copy of the completed form to the Foundation at 416-231-3103.
That's it. You'll get a tax receipt based on the closing price of the security the day it is received into the Foundation's share trading account. We sell your gift right away and put the proceeds into the endowment fund you've selected, or the gift fund you've set up. You'll have the satisfaction of knowing you've given both generously and strategically to the church you love.
To view more ways to give, please click here.