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Donate Stock

Good tax news for diabetes donations

Charitable intentions and tax-wise planning can go hand-in-hand.  One of the most effective ways to accomplish this is through the donation of stocks.

In a move to encourage more gifts to charity, the 2006 federal budget exempted donations of publicly listed securities to charity from capital gains tax.  Since then, the Association has realized a 70% increase in the number of donations of this type as more and more people realize the advantages of this strategy.

By donating stock to the Association, you will receive two types of tax savings:

  1. A tax credit for the donation approximately equal to the highest marginal tax rate in your province.
  2. No capital gains paid on the disposition of stock.  (Note:  the stocks themselves must be transferred to the charity, not the cash proceeds from the sale of the stocks.)

As an example, the net cost of a $10,000 gift of securities (with an initial investment cost of $4,000) would be approximately $5,630 .  This means your donation would give you a net tax benefit of $4,370.

For more information on how this gift arrangement can work for you, please contact Lori Sussman, Director, Major & Legacy Gifts, at 1-800-BANTING (226-8464) ext 7121.  Please click here to open the form required to initiate a gift of securities.