Donating publicly traded stock and securities is a tax-smart way to support Tafelmusik. You will receive a donation receipt for the full appreciated value of a donation of publicly traded stock or securities and you will not be subject to any capital gains tax.
Eligible securities include shares, debt obligations or rights listed on a prescribed stock exchange, a share of the capital stock of a mutual fund corporation, a unit of a mutual fund trust, an interest in a related segregated fund trust or a prescribed debt obligation.
The simplest way to make your gift of stock or securities is to have the shares electronically transferred from your account to Tafelmusik’s account. Our staff will help guide you through the process and provide any necessary information. The receipt value will be based on the closing trading price on the day Tafelmusik receives delivery of the shares.
Here is an example of the tax credit on a gift of appreciated securities to Tafelmusik:
This chart illustrates the tax benefit to the donor:
|
Sale of Stock, |
Donation of Stock Directly to Tafelmusik |
A. Fair Market Value of Stock |
$10,000 |
$10,000 |
B. Original Cost of Stocks |
4,000 |
4,000 |
C. Capital Gain (A minus B) |
6,000 |
6,000 |
D. Taxable Amount |
3,000 |
0 |
E. Tax Due on Capital Gain* |
1,380 |
0 |
F. Charitable Tax Receipt/Gift to Tafelmusik |
10,000 |
10,000 |
G. Charitable Tax Credit* |
4,600 |
4,600 |
H. Tax Savings from Disposal of Stock (G minus E) |
$3,220 |
$4,600 |
*These calculations are based on an income tax bracket of 46% and a 46% tax credit. Please consult with your financial and/or tax advisor about information tailored to your own circumstances and to confirm applicable tax benefits.
As you can see, the donation of securities directly to Tafelmusik entitles Robert to a tax savings of $4,600 (Box H). That’s $1,380 more than the donor who sells their shares before making a donation of the same amount!
Donors making a gift of shares acquired through an employee stock option plan of a publicly traded company also receive favourable treatment. Under the new legislation, the inclusion of the employee benefit (income) for tax purposes is reduced to zero if the shares are donated within 30 days of their acquisition. This change is designed to parallel the capital gains inclusion rate for donations of publicly traded securities.
For your convenience, here are the five easy steps to making a gift of securities to Tafelmusik:
Adobe Acrobat Reader to open this form. Download it free.) To ensure that your particular needs are met and that your wishes are honoured, we recommend that you consult legal and/or financial advisors. At the same time, also contact us at Tafelmusik and let us know about your intentions. Not only can we answer any question you may have, we can also have a conversation about how you would like the proceeds from your gift put to use.
This form is in PDF format and requires Adobe Acrobat Reader. Don't have the reader? Download it free.
For more information on bequest gifts to Tafelmusik, please contact Michelle Yeung, Director of Development (Interim), at (416) 964-9562 ext. 240, or via e-mail myeung@tafelmusik.org.
