If you own publicly traded securities or mutual funds that have increased in value, you may want to consider donating the securities directly to the CJPME Foundation.
There are significant tax advantages to donating your shares directly to the CJPME Foundation rather than selling the shares and donating the proceeds. You will pay no tax on capital gains when you make a gift of shares to a charity like the CJPME Foundation, as long as the shares are listed on a stock exchange prescribed by Canada Revenue Agency.*
For example, if you donate a $10,000 security to the CJPME Foundation that had a $5,000 gain, you would get the charitable tax receipt from the CJPME Foundation for $10,000 and pay NO TAX on the gain. If, instead, you were to sell the $10,000 security yourself, and then donate the $10,000 cash to the CJPME Foundation, you would get your tax receipt from the CJPME Foundation for the whole amount ($10,000), but the government would then tax you on half your capital gains. So in this second scenario, you would pay tax of $1,050 (i.e. taxable gain of $2,500 and a 42 per cent tax rate).
How do I take advantage of this?
Inform your broker of your intent, and ask them to help you complete the form here (in Microsoft Word format.) The CJPME Foundation has a brokerage account with CIBC Wood Gundy wealth management. I’d you’d like, please contact Thomas Woodley at the CJPME Foundation at 1-514-389-8668, or our contacts at CIBC Wood Gundy (see form here) for help in completing the transfer to the CJPME Foundation brokerage account. You will receive a charitable tax receipt from the CJPME Foundation for the fair market value of the gifted securities.
For more information…
If you would like more information about donating securities to the CJPME Foundation, please complete our gift of securities notification form and send it to [email protected].
* Canadian and US exchanges prescribed by the Canada Revenue Agency include:
- Canada: Aequitas NEO Exchange
- Canada: Canadian National Stock Exchange (operating as the Canadian Securities Exchange)
- Canada: Montreal Exchange
- Canada: TSX Venture Exchange (Tiers 1 and 2)
- Canada: Toronto Stock Exchange
- United States: BATS Exchange
- United States: Nasdaq BX
- United States: Chicago Board of Options
- United States: Chicago Board of Trade
- United States: Chicago Stock Exchange
- United States: Investors Exchange LLC
- United States: National Association of Securities Dealers Automated Quotation System (Nasdaq)
- United States: National Stock Exchange
- United States: New York Stock Exchange
- United States: NYSE Arca
- United States: NYSE MKT
- United States: Nasdaq PHLX
Click here to see the full list.