Donating your stocks and securities directly to Michael Garron Hospital Foundation – either during your lifetime or as part of a legacy gift – allows you to make a significant donation that results in a charitable tax credit that may offset other income tax.
Usually, when you sell shares for cash, even if you plan to donate the proceeds to charity, you’re responsible for paying tax on 50% of the capital gain. But if you donate them directly to Michael Garron Hospital Foundation, you don’t pay capital gains tax. You’ll also receive a charitable tax receipt for the full market value of your gift.
How it works
Here’s what the tax advantage could look like if you donate shares directly to Michael Garron Hospital Foundation, versus selling them and then donating the cash proceeds.
You gain $1,350 more in tax savings when you donate $10,000 worth of shares directly to Michael Garron Hospital Foundation versus selling your shares and donating the cash.
| Sell shares and donate cash | Donate shares directly | |
| Charitable donation receipt | $10,000 | $10,000 |
| Tax credit/savings on gift (at 45%) | $4,500 | $4,500 |
| Capital gain ($10,000 - $4,000) | $6,000 | $6,000 |
| Taxable portion of gain | $3,000 (50% x $6,000) | $0 (0% x $6,000) |
| Tax on gain (at 45%) | $1,350 | $0 |
| Tax credit / savings on gift | $4,500 | $4,500 |
| Capital gains tax paid | $1,350 | $0 |
| Net tax savings | $3,150 | $4,500 |
Ready to get started?
- Talk to your financial advisor to decide what makes most sense for your financial and philanthropic goals.
- Complete the transfer form or call us directly
- Then ask your broker to transfer your securities to Michael Garron Hospital Foundation.
- Once you’ve made your gift, please let us know so that we can show our appreciation.
Resources:
Gifts of securities transfer form
CRA Charitable Registration Number
119259448 RR0001
Organization name:
Toronto East Health Network Foundation, operating as Michael Garron Hospital Foundation