Gifts of Securities
Pay Less, Give More: The Gift of Publicly Listed Securities
You’ve done well in life and made smart investments in stocks or mutual funds that have grown over the years, and now you’re looking for an effective vehicle to give back to your community. You could sell off the shares and trigger a capital gain you’ll be taxed on, or you can gift the securities to a qualified donee, like the Victoria Foundation, maximizing the tax efficacy for you and the value for them. As this (in most cases) results in an inclusion rate of zero on the capital gains (in plain English, it eliminates the tax on capital gains), the value to everyone is immense: the charity you’re donating to receives more financial value, while you end up with a larger tax credit, all for the same stock value.
Donations Go Further with the Gift of Securities
We recently met up with Janice and Jan Drent, a lovely couple who have been providing gifts in the form of stocks for a few years now. “We feel we’re very fortunate,” shared Janice. “We have healthy children, and they were well launched when we retired, so we asked ourselves, ‘How can we make a contribution to the community?’ because wherever you live, you benefit from the community amenities, public libraries, proximity to the university, the theatres, the symphony, and more. It’s a citizen’s duty to offer what one can to help other people over hurdles.
“This is an opportunity to fulfill a community service and, at the same time, get credit for tax purposes,” shared Jan. “It’s very attractive. Also, I think it’s commendable that the governments, provincial and federal, are encouraging people who have money to donate in this fashion.”
“The Victoria Foundation is knowledgeable about our community and aware of the local needs. It’s great to have their help so we can put the money where it can be best used.” — Janice Drent
How to Choose the Right Gift
The Victoria Foundation can work with you and your financial advisor to bring your publicly listed securities to the cause you want to support. “Look at your holdings and see what makes sense,” explained Jan. “As a taxpayer, you’re aware of embedded capital gains, so if you have held these securities for a while and are concerned about estate planning, it’s helpful to be able to donate shares with large embedded gains so you can overcome the tax issues while providing value to your cause.”
Where Do You Like to Donate?
“When I retired from the navy,” said Jan, “I volunteered at the George Pringle Memorial Camp in Shawnigan Lake, which is how I learned about the option to donate securities. Since then, we’ve branched out to other causes. We are subscribers to the symphony and the opera, and we started donating shares to them as our way of making a small contribution for the good work they’re doing in our community.”
“We’ve donated shares to the Maritime Museum, Our Place Society, and our church, and we’re very interested in supporting the Belfry Theatre and the Blue Bridge Theatre. I guess you could say we try to support all of these endeavours that enrich community life and make Victoria a truly grand place to live.” — Jan Drent
A gift of securities is a cost-effective option that allows donors to contribute directly to causes they believe in. “I’m very interested in encouraging the study of languages,” said Jan, “so I give money every year to Russian- and German-language bursaries at UVic. We’re also very concerned about the educational opportunities available to First Nations children, specifically those who have been under care, so we talked to the Victoria Foundation, and Sara Neely helped us make contributions there. That’s a great example of where the Victoria Foundation was very helpful: helping us find a niche where we could best use the money for the purpose we had in mind.”
Donating with the Victoria Foundation
Your gift of securities is a cost-effective way to give back to your community, whether you choose to give the securities today or through your estate at some point in the future. There are some considerations that might need further explanation, so if this is the type of donation you’d like to give, contact the Victoria Foundation to learn how we can set things up to make the process easy.
If you’re looking for ways to contribute your good fortune to causes you believe in, contact us to learn more about our gifts of securities program, or get started by filling out this form with your financial advisor or broker.