St. Stephen's Community House participants

Securities

When you give a gift of securities, you transfer stocks or mutual funds you own to St. Stephen's.

Giving a gift of stocks or mutual funds may give you the most tax benefits of any donation method.

In May 2006, the federal government eliminated the capital gains tax on donations of publicly listed securities to charities. This means you receive a tax receipt for the full Fair Market Value of the shares you donate and you are not taxed on any gain. If the securities were sold instead with the proceeds donated to St. Stephen's, your capital gain would be taxed at a 50% rate.

Your charitable receipt will reflect the closing market price of the shares on the date they are received in our brokerage account.

The example below is based on information from the United Way. It shows you can benefit from a direct transfer of stock to St Stephen's.

Example Proceeds to SSCH Sell Stock and donate cash to SSCH Donate stock directly to SSCH
Fair market value (FMV) of stock $ 25,000 $ 25,000
Original cost of stock $   5,000 $   5,000
Capital gain (FMV less the original cost of stock) $ 20,000 $ 20,000
Taxable capital gain $ 10,000
(50% of gain)
0
(0% of capical gain is taxable)
Value of tax receipt for gift (50%* of $25,000) $ 12,500 $ 12,500
Tax payable on gain $   5,000
(50% x $ 10,000)
0
Tax saving by making gift $   7,500 $ 12,500

*assumed combined Federal and Provincial tax rate of 50%

For more information, please contact our Director of Finance, Tekeste Foto, at 416-925-2103 x 1233 or at ftekeste@sschto.ca.