NEWS AND EVENTS

Did You Know - A Win, Win, Win
When Gifting Publicly-Traded Securities

If you wish to donate publicly traded securities such as stocks, rights, mutual funds, interests in segregated funds or bonds, to a charitable organization, the taxation on capital gains generated by the disposition of such donated securities has been eliminated, according to taxation legislation enacted May 2, 2006. Previously, a donation of securities where capital gains were generated, the donor had to pay tax. Now the taxation on the gains is deemed to be zero for tax purposes when the financial instrument is donated to a charitable organization. Furthermore, the donor receives a tax receipt for the fair market value based on the date when the securities are received by the charitable organization. The tax receipt of course can be applied as part of the donor's annual income tax return and reduces taxes payable.

It is also important to note that the donated securities must be transferred to the charitable organization in kind (i.e., by transferring the actual shares and not simply transferring the cash). This involves the use of stockbrokers by each of the two parties involved. We encourage you to consider the implications of this relatively new legislation and consult your financial advisor on the best way to optimize your gifting.

To find out how to donate shares to the Heart Institute, please contact Josée Quenneville at the Heart Institute Foundation at 613-761-4524, or by email at jquenneville@ottawaheart.ca.