The Parkdale Food Centre is happy to announce that we are now accepting donations of stocks and mutual funds. We have set up this new donation method because of requests from donors.
The reason most people are interested in giving securities is that the tax on capitals gains are now reduced to zero. Since June 2006 individuals can donate appreciated securities without paying any capital gains tax. You receive a tax receipt for the full value of the shares. This is more efficient than selling the securities and donating the cash proceeds.
We also are able to accept securities donations left to us by people in their wills. This allows you to reduce the tax burden on your estate.
To help visualize here is an example:
Mary paid $1,000 for shares in Corporation A. Because they are now worth $6,000, her capital gain is $5,000. By donating the shares to Parkdale Food Centre, she pays no capital gains tax. She receives a charitable donation receipt of $5,000, which she can apply against other income. At a marginal tax rate of 44 per cent, she saves $2,200 in tax.
If you are interested in having a conversation with us about donating securities please email our Treasurer,email@example.com. Alternatively you can call us and we’ll take it from there!
Our policy is to sell the shares as soon as we receive them. We then issue a tax receipt for the value of the proceeds – less any transaction fees.