A Gift of Securities to KLT is a Win/Win

The benefits of making a charitable donation to KLT are countless – you will help protect significant sites throughout the Kawarthas, create corridors for wildlife and increase the number of sites you can access on walking trails, all while saving on your income tax!

David Cation, a Bobcaygeon resident, KLT volunteer and donor has a suggestion for those of us who have stocks and other securities:

“I’ve found a way to turn the tables on the tax man when it comes to managing your stock and other security investments. If you have been in the stock market you will probably have recorded healthy returns post the US election.

This may be a unique time to realize some of your profits AND give to your favourite charity using that charitable donation to offset the gains (Donations of shares to a registered charity are exempt from capital gains, a new amendment in the past decade).

A sweet donation now would be to the Kawartha Land Trust because they are big in preserving land for future generations.”

Gifts of securities can include stocks, bonds and mutual funds containing stocks listed on approved stock exchanges.

When you donate shares directly, you can save on taxes while offering more help to the charities you care about most.

Here is just one example of what David is suggesting on a security valued at $5,000:

 

Benefits of Donating Appreciated Securities
to Kawartha Land Trust
Sell securities and donate the after-tax proceeds Donate securities to KLT
Current Market Value of Security $5,000 $5,000
Original Cost of Security $1,000 $1,000
Capital Gain $4,000 $4,000
Donation Amount to KLT $5,000 $5,000
Your Charitable Tax Credit $1,877[i] $2,300
Net Cost to Donate $5000 $3,123 $2,700

These are general figures for the purpose of illustration. They do not constitute legal or financial advice. We strongly encourage you to seek professional legal and/or financial advice before deciding upon your donation to charity.

In the chart above, you’re able to donate the full value of your securities to charity: $5,000.00. Your tax credit on that amount would be approximately $2,300, or about $920 more than if you had sold the shares and donated the proceeds as cash.

To make gift of securities please complete our Gift of Securities Form:

For more information see:

Donating Appreciated Securities – From BMO Wealth Management*

Win-win tax strategy: donating stocks to charity – Globe and Mail*

*Please note KLT does not recommend a particular financial services provider. This information was provided to us by one of our donors and we thought the information is worth sharing. We recommend that you speak to a licensed advisor, accountant or lawyer if you have questions about your personal finance. 

[i] This assumes a 46% marginal tax rate. For calculating capital gains tax, this rate is applied to 50% of the capital gain.