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Benefits of a Gift of Stock
Making a Gift of Stock to Princess Margaret Hospital is a ‘triple win’ for you.
PMH, a Global Powerhouse in the Fight to Conquer Cancer
New discoveries and innovative cancer therapies that are changing cancer care for patients globally are happening right here in Canada at Princess Margaret Hospital.
PMH is the world leader in:
- A world leader in Cancer stem cell research
- A world leader in Image-guided therapeutics
- A world leader in Lung cancer research and treatment, and
- A world leader in Patient survivorship program development
- An emerging leader in breast cancer research and discovery
From the bench lab to the clinic, this hospital is focused on providing the best and most up-to-date care and treatment for each of our patients. If you want a secure reputable, and well-known place to make your philanthropic investment, then there is no better place than Princess Margaret Hospital.
For more information please visit www.pmhf.ca
Charitable Tax Receipt
Your Gift of Stock entitles you to a charitable tax receipt for the full value of your donation. The Princess Margaret Hospital Foundation values, for receipting purposes, all gifts of stock based on the closing price of the stock on the day the stock is received by the Foundation.
As with all charitable donations, a certain percentage of the donation becomes a non-refundable tax credit which has the effect of lowering your taxes payable in the year. Charitable tax credits can also be brought forward and used in future tax years. You don’t need to use the whole amount in one year, and you can spread out your tax savings over 5 years.
No Taxes on Accumulated Capital Gains
The federal government has eliminated capital gains taxes on shares that are donated to a charity like The Princess Margaret Hospital Foundation. Below is a simple chart which illustrates how you can save thousands of dollars in capital gains taxes by donating shares directly to Princess Margaret. Here’s how the tax savings work…
Say, for example, that Betty, a loyal donor to Princess Margaret Hospital, bought 500 shares of Big Bank Corp in 1995 for $25 per share. Over time, the value of Betty’s shares has risen to $75 per share. Betty wants to help Princess Margaret in a more substantial way than her usual $1,000 annual donation.
The first column shows what happens if Betty sells her shares, and then donates the proceeds, while the second column shows the impact of Betty donating the shares directly with a gift of stock.
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Sell Shares & Donate Proceeds to PMH |
Donate Shares Directly to PMH |
| Number of Shares |
500 |
500 |
| Current Value |
$37,500 |
$37,500 |
| Purchase Price |
$12,500 |
$12,500 |
| Capital Gains |
$25,000 |
$25,000 |
| Capital Gains Taxes* |
$5,801 |
$0.00 |
| Donation to PMH |
$31,699 |
$37,500 |
| Tax Credit** |
$12,692 |
$15,023 |
* highest marginal tax rate for an Ontario resident.
** resident of Ontario.
The information provided above is for illustrative purposes only. Please consult your financial or legal advisor for tax-effective giving that is right for you.
By making a gift of stock, Betty will not pay $5,801 in capital gains taxes and receive $2,331 in extra charitable tax credits for a total of $8,132 in extra tax savings. Plus, the hospital receives an even larger donation to help fight cancer!
Betty could also make a $10,000 gift of stock by donating 134 shares and still have 366 shares left over for future use. She would not pay the $1,554 capital gains tax owing on the sale of shares, and would receive a charitable tax credit of $3,978. Her total tax savings would equal $5,532 – just over 50% of her donation.
Making a gift of stock is not difficult. First, evaluate your financial situation to ensure a gift of stock is the right way for you to support Princess Margaret Hospital at this time. Secondly, seek the advice of a professional advisor (your lawyer, accountant, tax or investment advisor) so you are aware of all the financial implications.
After that, view the 4 steps in our Donate Now section. |
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