Outstanding Tax Savings! How a Gift of Appreciated Publicly Traded Securities Can Benefit You and Others

While supporting The Salvation Army in helping those in need this Christmas season and throughout the year, you also can maximize your tax benefits. It’s easy and simple to do.

Advantages to you:
Your capital gains tax is completely eliminated when you directly donate appreciated publicly listed securities and mutual funds to a registered Canadian charity. With some restrictions, private company shares also can benefit from this special tax treatment, other than in Quebec.

You receive a charitable income tax receipt for 100 percent of the fair market value of the gifted securities when received in The Salvation Army’s account resulting in a double tax benefit to you!

You can claim charitable tax credits up to 75% of your net income each year. If your gift exceeds this amount, you can carry forward any unused portion over a five year period.

Example – A donor who has a 50% tax rate wishes to make a $10,000 donation to The Salvation Army. The stock cost $2,000 and is now worth $10,000. We will look at what happens when the donor sells the stock and donates the proceeds to The Salvation Army (A) or when the donor transfers $10,000 worth of stock directly to the Salvation Army (B)

Note: The above example is for illustration purposes and is subject to changes in tax provisions. Consult a financial advisor for an interpretation of current tax laws and fuller details.

How Does it Work?
When making a gift of securities, decide which securities or mutual fund holdings you wish to donate.

Visit SalvationArmy.ca/giftofsecurities for transfer instructions and a transfer form. Please ask your broker to e-mail or fax a copy of your completed form to us so we can ensure timely issuing of your tax receipt and acknowledgement of your generous gift.

Note: In order to qualify for a 2010 tax receipt, the securities/mutual funds must be received by The Salvation Army by December 31, 2010.

Donations of Employee Stock Options: Many employees of public companies are partly compensated by being granted options to purchase their employer’s stock at a preferred rate. Donations of public company stock purchased through these plans receive the same tax treatment as gifts of public securities. Arrangements for transfer of options normally are made through the employee’s benefits plan administrator.

For more information:
If you would like more information about donating to The Salvation Army, please contact donor_questions@can.salvationarmy.org or call 1-800-725-2769.