Securities are a wonderful way to make a gift to the VRS and increase your tax savings. Donating securities is an attractive option for many donors because it allows them to eliminate the capital gains they might incur on publicly listed securities, mutual funds, or segregated funds of life insurance companies that are donated to a registered charity.
How does it work? It’s really quite simple:
The example below compares the possible tax savings for a donation of $50,000 in securities to the Vancouver Recital Society against the proceeds from simply selling the shares to make your donation, or donating cash:
The Benefit of a Direct Gift of Securities to the Vancouver Recital Society
| Donate securities in-kind | Sell your securities and donate the proceeds | |
| Purchase price of securities |
$10,000 |
$10,000 |
| Present value of securities | $50,000 | $50,000 |
| Capital gain | $40,000 | $40,000 |
| Amount of your donation | $50,000 | $50,000 |
| Subtract your charitable tax credit | ($21,850) | ($21,850) |
| Add tax on the capital gain | $ 0 | $ 8,740 |
| After tax cost of your donation | $28,150 | $36,890 |
Marginal Tax Rate: 43.7% / Tax Credit: 43.7%
Benefits:
| Tax receipt for gift to the VRS | $50,000 | |
| Other income you shelter | $13,110 | |
| VRS receives | $50,000 |
If you have any questions about the benefits of donating this way, please feel free to contact Sara by phone at 604-602-0363 ext. 202 or by email.
We have created a downloadable form for you to use if you wish to donate to the VRS via transfer of shares; the process is straightforward and everything you (and we) need to know is contained in the form. Of course, if you have any questions, please feel free to contact Sara, and she will be happy to work with you to ensure a smooth transfer.
“Making my gift via transfer of securities is cost-effective and easy.”
– Lynn Kagan