If you’d like to make a big difference for our environment, you can by donating gifts of stock to the Conservation Halton Foundation.
Recent changes to federal tax laws mean that if you donate stock, you won’t pay any tax on the capital gains. This applies to gifts of publicly traded stocks, bonds and mutual fund units. This can provide you with a significant tax benefit.
What does this mean? Because you don’t pay taxes to the government, more of your money goes to protecting the environment.
Here are two possible scenarios:
Scenario 1: Donating stock to Conservation Halton Foundation.
If you bought 100 shares of ABC Company, for $50 each and they increased in value to $100 per share, you stocks would be worth $10,000 and you’d have a capital gain of $5,000.
Under new regulations for eligible investments, this capital gain is tax exempt.
If you donate these shares, we can provide you with a tax receipt for $10,000. And you can make a difference by:
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Planting 10,000 trees or
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Sponsoring 1,666 students to attend the Halton Children’s Water Festival or
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Providing food and veterinary care for 20 hawks, owls and eagles at the Cockburn Raptor Centre.
Scenario 2: Selling stock and donating proceeds to Conservation Halton Foundation
If you bought 100 shares of ABC Company, for $50 each and they increased in value to $100 per share, you stocks would be worth $10,000. If you sell the shares, your capital gain is $5,000.
Under current regulations, 50% of capital gains are taxable. If your marginal tax rate is 45%, you’d pay capital gains tax of $1,125. And so, you could donate $8,875 to the Conservation Halton Foundation, and you can make a difference by:
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Planting 8,875 trees
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Sponsoring 1,479 students to attend the Halton Children’s Water Festival or
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Providing food and veterinary care for 17 hawks, owls and eagles at the Cockburn Raptor Centre.
The advantages – in this example – of donating stock directly to Conservation Halton Foundation are
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You can plant more trees, sponsor more students or help more birds
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You save $1,125 in capital gains tax
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Your get a tax receipt for the full $10,000 (based on the closing price of the securities on the date the securities are received by the Conservation Halton Foundation)
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If your tax credit exceeds your allowable amount, you can carry forward the excess credit for up to five years.
For more information on making a gift of stock to the Conservation Halton Foundation, please call us at (905) 336-1158 extension 255 or by email at found@hrca.on.ca.
Stocks for Hawks
