Gifts of Securities
Capital gains help build better bridges. Tax-free.
Innovative provisions to taxation have been made that encourage greater philanthropic activity in Canada.
Specifically, donors who donate certain publicly traded securities "in kind" to Canadian private foundations or registered public charities, including the Carleton Place and District Memorial Hospital (CPDMH) Foundation, are now exempt from the payment of capital gains tax on any profit created by the fair market value of the donation.
Qualifying securities include stocks, bonds, trust units, exchange-traded funds, segregated funds and mutual funds units to name a few, as well as shares acquired on exercise of employee stock options, although the process for tax reporting is different on the latter.
Under the old rules, tax was payable on 25% of the capital gains realized on the fair market value of the donated securities shares. Due to changes in the 2006 Federal Budget, there is now no tax payable on any of the capital gains realized.
In order to qualify, the following criteria must be met:
The donation must be made "in kind" (or in their current form, unsold)
The charity must be a Canadian publicly registered charity or private foundation
The shares must be publicly traded on Canadian or other major international exchanges (private company holdings do not qualify at this time)
For more information about Gifts of Securities and to receive our Transfer and Authorization form, please contact:
The CPDMH Foundation Office