Tax Advantages
Tax Advantages of Making a Gift of Securities to Pickering College
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Gifts of securities are a cost-effective way to transform an asset into immediate and significant support for Pickering College. By donating your appreciated stocks, mutual funds or stock options, you eliminate the capital gains tax you would have to pay if you sold your appreciated securities, and you receive a charitable tax receipt for your donation.
Here's how it works:
A $10,000 cash gift, and a gift through the sale of a $10,000 gift of appreciated securities (stocks, mutual funds, bonds) both generate the same charitable tax credit. But if you transfer publicly-traded stocks, bonds or mutual fund shares in-kind to make your gift, you will receive an additional tax benefit. The federal budget announced the elimination of capital gains tax on gifts of securities, effective May 2, 2006.
When you transfer gifts of securities to Pickering College, you receive a donation receipt for the fair market value on the date of transfer without triggering capital gains tax. If you were to sell securities and donate the proceeds, 50% of the gain would be taxable.
The Impact: You receive a larger tax credit by donating the stock to Pickering College, rather than selling the stock and then donating it.
Your gift of securities is valued on the day that it reaches Pickering College's account, if your broker transfers them electronically or, the postmark date, if you mail them. Your gift value is the average of the high and the low prices for the securities on that date (for mutual fund shares, it is the net asset value).
For donations to be credited in the current calendar year, please make sure to send your gift by December 31st of that year.
At least three hours prior to initiating your gift transfer, please complete the Direction to Transfer Canadian Securities Form and return a copy to the Development Office by fax: 905-895-9076. If you would like the Direction to Transfer Canadian Securities Form, please contact Jessie-May Rowntree at jrowntree@pickeringcollege.on.ca.
Unexpected or unidentifiable transfers may be rejected for legal reasons.
Contact Development with any questions about the gift of securities transfer process.