Encouraging Gifts of Securities
By incorporating a securities donation strategy into your overall stewardship plan, you will likely discover that there are people in your community of faith who have the capacity to support you in a way they never have before. Ministries of all sizes can develop new revenue streams to support operations and special projects.
Imagine receiving a major gift from folks you never imagined were in a position to give so generously. Or from those you knew could, if only they could find a creative solution to do so. By creating awareness and reminding your congregation about gifts of securities, you can!
How does it work?
We get asked all the time if congregations and other organizations need to set up a special account with the Foundation in order to accept gifts of securities. The answer is no! By making the donation through the Foundation, there is very little work on your part at all! The donor initiates the transaction through their broker, the Foundation receives and sells the securities, transfers the proceeds to you, and issues the charitable tax receipt on your behalf.
Your congregation must continue to engage in the vital work of telling the story of your ministry, nurturing relationships, and inspiring this faithful giving. The Foundation provides a streamlined process for accepting donations of securities, allowing you to focus on your ministry.
Here are some tips to encourage gifts of securities to support your work:
- Make sure folks are educated. The Foundation often posts important industry news and educational resources that will ensure your supporters have the most-up-to-date information to make their gifts. Share our social media posts, blogs, webinars, and newsletters!
- Ask past securities donors to share their experience, and/or share a story of what has been made possible in your congregation thanks in part to a gift of securities. Personal testimony is always the most powerful motivator!
- Keep this way of giving top of mind. Include something on your social media, in your newsletter, bulletin, on your pledge forms, so when it comes time to make a gift, people will remember that it’s an option! Use the templates and sample text we’ve provided below as a start.
Changes to the Tax System for 2024
Canadians owning securities (stocks, bonds, mutual funds) that increase in value experience what is called a “capital gain.” These capital gains are taxable when the securities are sold. Although selling shares in a publicly traded company will generate personal income, stockholders must pay a significant amount of tax on 50% of the capital gain.
Fortunately, since May 2006, a holder of securities can eliminate taxes on their capital gain by donating the securities directly to a registered charity like the United Church of Canada Foundation. By doing so, the gain is eliminated, and the donor receives a charitable tax credit for the full market value based on the close price on the day when the transfer goes into the Foundation’s account. This is a great opportunity to support the United Church ministries and other causes they care about while also benefiting from tax savings, because the Foundation is able to then direct the proceeds of the sale of the shares to congregations, camps, chaplaincies, and other Canadian charities.
Donations of appreciated marketable securities are an important, tax-efficient giving vehicle for individuals to support United Church ministry they love! However, the 2023 Federal Budget includes the elimination of this tax exemption for capital gains on donated gifts of securities, potentially removing an important tax incentive for donors considering support for United Church ministries using the services of the Foundation. The window to take advantage of existing tax benefit for donated securities will close on December 31, 2023, and the Foundation is encouraging all individuals to speak with their financial advisors to determine the best path forward.
First and foremost, please encourage your supporters to speak with their financial advisor to determine the most appropriate course of action. And encourage folks who may be affected by the new tax rules to consider a gift of securities in 2023 (it can be distributed per their instruction over the next calendar year).
- Our latest securities transfer form
- Sample text to use in your bulletin or newsletter
- Cusomizable social media posts (can also be used in your other communications)
If you need any assistance using these templates, or have questions about them, please call us 1-866-340-8223 or email email@example.com.
- DEC. 4: For your community of faith to receive your gift within the calendar year, donors should start the process before December 4, 2023.
- DEC. 11: For gifts of mutual funds, donors should start the process before December 11, 2023 to ensure their gift is eligible for a 2023 Tax Receipt
- DEC. 18: For gifts of common shares, donors should start the process before December 18, 2023 to ensure their gift is eligible for a 2023 Tax Receipt