Gifts of Securities
Gifts of certain types of appreciated assets, such as securities and real estate are very popular and may provide you with even greater tax benefits than charitable gifts made in cash. While you continue to benefit from a charitable deduction of the full, fair-market value of the gift, you receive an additional benefit because you eliminate the tax in the unrealized gain of the gifted property.
Effective July 1, 2006, donations of publicly listed securities were exempted from all capital gains taxation.
By donating publicly traded shares to United Way, you will now not pay any capital gains tax normally associated with such a disposition. This means that you receive a tax receipt for the full value of the shares but are NOT taxed on any gain. Donors of securities therefore do not need to take any capital gain into income. Your charitable receipt will reflect the closing price of the shares on the date they are received in United Way’s brokerage account. Eligible securities include shares, bonds, bills, warrants, futures, units in mutual trust funds and shares acquired through employee stock options listed on a Canadian stock exchange or on most foreign exchanges, such as New York, London, Tokyo and Nasdaq.
United Way of Halifax Region is set up to receive such gifts and can work with you to facilitate the transaction. Consult your professional financial advisor and legal counsel when considering a donation of appreciated assets.
Important Note: Actual shares must be transferred to United Way. If shares are sold and the proceeds from the sale are donated to United Way, the enhanced tax benefits do not apply. The following example illustrates this point.
To make a gift of securities, please complete the Share Transfer Form and fax the completed form to Bonnie Boyd-Read at (902) 423-6837.
For more information about gifts of securities, please contact Bonnie Boyd-Read or contact your financial advisor.