It’s been a tough financial year for the charitable services sector. A vast majority of my colleagues from other non-profit community services organizations are telling me they’ll be running a deficit budget this year and are likely to do so next year. With interest rates staying at historic low levels, many of the foundations that helps support us can’t yield enough to cover what they have traditionally been able to. Most of us in the sector have already reduced our staffing levels to the minimal complement needed to delivery essential levels of service. We can all do more, but need more.
The stock markets, on the other hand, have done very well this year. Many mutual funds have seen double-digit gains over the year to date. For those who have enjoyed a good year through the markets and are considering making a donation to SCI BC or another charitable organization, consider the gift of securities – donating shares directly helps both much needed community services and you!
Consider this, the difference in the economic benefit to you of donating $5,000 in shares directly versus selling those shares and donating $5,000 in cash could be as much as $437. Why is this? A recent article by Odlum Brown’s Ian Robertson in the Vancouver Foundations Fall 2013 Magazine (you can find it on page 31). I’m borrowing heavily from this article, which I encourage you to visit and read for yourself. The article contains a lot of important technical info that you should know about if considering donating shares directly.
In short, through Canada’s tax laws, capital gains on donations of publicly traded securities to registered charities are not taxable. If one was to sell the securities and donate the cash, he/she would have to pay the capital gains tax on those securities. Here’s the example used in the Vancouver Magazine article:
If you are looking to make a donation that will provide a tax credit for 2013, there’s still time to do so! And, the gift of publicly traded securities may just be the answer you and your charity of choice are looking for. Of course, I hope SCI BC is on your list of charities to donate to!
For more on ways to give to SCI BC, click here.