Gifts of Securities

Donations of publicly listed securities are exempt from the capital gains tax, making this one of the most attractive ways to support your YMCA. These are gifts made by donating appreciated stocks, bonds and mutual funds and receiving a charitable tax receipt for the full value of the securities and you are NOT taxed on any gain. Recent changes to tax law have made this a very effective strategy for giving.

Here are the 3 simple steps to donate Gifts of Securities to the YMCA:

  1. Consult your financial advisor to discuss your personal financial and tax situation and to determine which investments will make the most philanthropic and financial impact for you.
  2. Complete the YMCA’s Gift of Securities form here that includes the correct transfer information for your gift and instruct your broker to transfer your securities.
  3. In order to facilitate the transfer and ensure you receive your official tax receipt, please return a copy of the completed form to Heidi Peever, VP Development at YMCA of Southwestern Ontario at heidi.peever@swo.ymca.ca.

THE ADVANTAGE OF DONATING SECURITIES
A gift of appreciated securities is a great alternative to a cash gift. You are able to decide how you want to give while the elimination of capital gains tax on gifts of appreciated securities provides you with a substantial tax incentive for donating stock.

Your benefits include:

  • A charitable tax receipt
  • No capital gains tax paid
  • A direct impact on the health and wellness of your community by supporting the YMCA
  • Depending on your gift size, recognition on our donor wall 

Example for an individual who donates shares versus cash:
Ms. Jones would like to donate $10,000 to the YMCA of Southwestern Ontario. The shares she owns of Bell Canada have a fair market value of $10,000 and an original cost of $100.

Ms. Jones’ total tax rate is 45% (22% on capital gain). She is deciding between selling the shares and donating the cash or transferring the shares directly to the Y.

The net tax benefit for Ms. Jones is determined as follows:

 

Sell shares and donate cash

Donate shares

Donation amount

$10,000

$10,000

Cost     

$100

$100

Capital gain

$9,900

$9,900

Income tax on capital gain

$2,178

$0

Donation tax credit

-$4,500

-$4,500

Net tax (benefit) from donation

-$2,322

-$4,500

 

To discuss your options or making a Gift of Securities to the Y, contact Heidi Peever, VP Development at heidi.peever@swo.ymca.ca or phone 519-907-5500 x1150.