When you donate appreciated securities to the Church, you get a tax receipt for the full market value of the gift and pay NO tax on the gain derived from the gift of appreciated securities. It is the most tax-effective way to make a donation.
More and more people are using this giving method to do a variety of things. Many make their annual pledge donation this way. Others support capital campaigns or make major gifts to support specific programs in their parishes, the diocese or the Anglican Church of Canada.
To achieve the full tax advantage it is essential that the securities be donated rather than the cash from their sale. If not, the capital gains tax will apply to your transaction. For example, Susan Chow, who owns publicly listed stock with a capital gain of $10,000, will save $1,700 in taxes by donating the stock rather than selling the stock and donating cash. If the tax receipt exceeds 75% of her net income, she may carry the excess forward for up to 5 years to continue reducing tax.
Making It Easy to Give...
Contributing appreciated securities is easy if you use the process established by the Gift Planning Office:
Use the Donation LOD form linked below to select the securities and quantities of each you intend to donate - it also has space to indicate the recipient parish / ministry you want to benefit from your gift. (The form is a fillable PDF)
Email Shailene Caparas or call her at (604) 684-6306 (Local 214) if you have any questions.
Complete the information on the form and send them both to your broker and to Shailene Caparas at the Diocese of New Westminster, 1410 Nanton Avenue, Vancouver, BC, V6H 2E2 or fax it to her attention at (604) 684-7017.
Once the securities are in our account, they are sold and you will receive a tax receipt based on the closing market price the day the appreciated securities are received. The Diocese, on receipt of the funds from the sale, issues a cheque (or cheques) to the church organization(s) you specified in the Gift Form.