Donating appreciated stocks or mutual funds is the most tax-effective way to make an outright gift during your lifetime or as part of a legacy gift.
When an individual sells an appreciated stock or mutual fund they are required to pay tax on 50 per cent of the capital gain. However, thanks to the Federal Budget of May 2006, if they donate the appreciated securities to charity, they pay no capital gains tax.
Benefits of making a gift of securities to Help Fill A Dream:
- A charitable tax receipt will be issued for the fair market value of the securities
- No capital gains tax owing if gifted to a public charity
- Satisfaction of seeing your donation put to good use
- An ‘un-needed’ asset is removed from your portfolio and converted to a charitable gift
- Opportunity to create a lasting charitable legacy through estate planning