A Gift of Stock or Mutual Funds
You may wish to consider donating shares of a publicly traded security or mutual fund directly to Evergreen. If your shares have increased in value, 50% of the capital gain is taxable as income. However, by transferring the shares directly to a charity, the capital gains tax does not apply. The table below illustrates the difference between selling shares outright and donating the proceeds, versus transferring the shares in-kind to Evergreen.
| Sell securities and donate proceeds |
Donate securities directly to Evergreen |
|
| Proceeds of sale | $40,000 | $40,000 |
| Initial cost of securities | $20,000 | $20,000 |
| Capital gain (1-2) | $20,000 | $20,000 |
| Taxable capital gain | $20,000 x 50% = $10,000 | $0 |
| Donation receipt | $40,000 | $40,000 |
| Tax owing on capital gain | $10,000 x 50% = $5,000 | $0 |
The above example assumes a personal income tax rate of 50%. In this scenario, $5000 is saved by donating shares directly to charity.
The dollar value of your tax receipt is determined by the closing price of the security on the day the shares are received by Evergreen.
Transferring Securities to Evergreen. To transfer securities directly to Evergreen please contact us to inform us of your decision.
If your investments are held at a financial institution, you will need to instruct your advisor or broker to transfer shares from your account to Evergreen's account. Evergreen will provide you with the information your financial institution will need to complete the transaction.
If you hold your investments in certificate form, please contact Evergreen to arrange for delivery.
For more information please contact Nicola Hives:
416-596-1495 x309
1-888-426-3138 x309
nhives@evergreen.ca
