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PLANNED GIVING
Gifts of Securities
Gain tax savings when you donate your BCE shares to RCH Foundation.
Find out how
Eliminate capital gains taxes! If you own bonds,
mutual funds or publicly-traded shares, you can donate them directly
to the Royal Columbian Hospital Foundation (RCHF) and face 0% capital
gains tax.
If you sell your appreciated securities outright,
and then donate their value to RCHF in cash, you will trigger capital
gains tax on 50% of your profit.
Either way, you’re issued a donation receipt
for the fair market value, however donating the securities directly
to RCHF saves you even more!
How does it work?
- You determine which securities or mutual fund holdings
you wish to donate
- Instruct your investment professional to transfer
the shares to us electronically or you can personally endorse
a share certificate and deliver it to the Royal Columbian Hospital
Foundation
- The date of the gift is the date the shares are
received into RCHF’s account
- The fair market valuation of the gift is the closing
market value on the date of the gift
- For mutual funds, the fair market valuation is
the bid price on the date of the gift
- Contact us in advance and we will provide
all the necessary information so the transfer will be smooth and
prompt
Benefits of Giving Securities to the Royal Columbian
Hospital Foundation
- A gift of securities "in kind"
to the Royal Columbian Hospital Foundation is much more beneficial
to you than selling something and donating the cash.
- Your charitable deduction can be claimed against
as much as 75% of your net income from sources such as pensions,
RRIF’s, investment income, etc. and any unused deductions
can be carried forward for the next five years.
- You can decide how you would like the Royal Columbian
Hospital Foundation to direct the funds, although unspecified
gifts allow us to fund the most urgent needs
- You will support your mission and ours, which
is to help the Royal Columbian Hospital save lives, restore health
and provide comfort to patients of all ages.
How a gift of publicly traded securities
benefits you and the Foundation
Mrs Allison wants to make a $20,000 donation to the
Royal Columbian Hospital Foundation while she’s still living.
Among her assets are shares of a publicly-traded company valued
at $20,000. She wants to know if it’s better to sell the shares
and give cash, or to give the shares "as is". This chart
shows the outcome of both scenarios:
| |
SELL
SECURITIES
and DONATE $ |
JUST
DONATE
THE SHARES |
| FAIR
MARKET VALUE OF SECURITIES (FMV) |
$20,000 |
$20,000 |
| INITIAL
COST OF SECURITIES |
$4,000 |
$4,000 |
| CAPITAL
GAIN/PROFIT (FMV LESS COST) |
$16,000 |
$16,000 |
|
TAXABLE GAIN (50% of the profit) |
$8,000
|
ZERO |
| TAX
PAYABLE ON GAIN (AT 43.7%) |
$3,496 |
ZERO |
| TAX
CREDIT |
$8,740 |
$8,740 |
| NET
TAX SAVINGS (TAX CREDIT LESS TAX PAYABLE ON GAIN) |
$5,244 |
$8,740 |
Whether your gift is more or less than $20,000, the
math is proportionately the same; the only variable is your tax
bracket. We used the highest BC tax rate in the example, which is
43.7%.
Gift of Securities in Your Will
When you leave a gift of securities to the Royal Columbian
Hospital Foundation in your Will, the tax credit can be used in
the year of death for up to 100% of that year’s income and/or
carried back one year.
To avoid confusion or delay in settling your estate,
please ensure that you specifically name Royal Columbian Hospital
Foundation as the beneficiary. It doesn’t hurt to also include
our Charitable Registration Number, which is 11912 8866 R0001.
We encourage to you to share your intention with us.
We would like to be able to express our appreciation to you personally
for your commitment and future support. Your gift intention will
be held in strictest confidence.
For more information, please
contact:
Laurie Tetarenko
Vice-President
Phone: (604) 520-4179
E-Mail: Laurie.Tetarenko@fraserhealth.ca
Other Methods of Planned Giving
Gift of Live Insurance
Charitable Remainder Trusts
Giving Through Your Will
Gifts of Securities |
