Planned Giving

Gifting Securities

Donating shares of a public corporation listed on a recognized exchange is a simple straightforward process, and the tax benefits can be exceptional.

With the help of your tax advisor or lawyer, you can arrange to transfer all or part of your investment directly to Battlefords Union Hospital Foundation.

Because you have transferred them directly, you can take advantage of a special provision of the Income Tax Act, which will give you a greater advantage than donating the proceeds, if the proceeds include capital gain.

If you were to sell the shares first and then donate the proceeds, you would be taxable on 50% of the gain and assuming you donated the full proceeds, would receive a charitable receipt for the amount of your donation.

Instead if you transferred the shares at market value, the capital gains inclusion rate is now 0% (therefore no tax is incurred) and you would be issued a charitable receipt for the full market value. This would save you 100% of the tax otherwise payable, as well as receiving the charitable tax credit on the full donation.

Gifting Other Tangible Property

The special Taxable Gain reduction referred to in the above does not apply to gifts of other assets, such as real estate, although, there is another special Income Tax provision relating to gifts of cultural property.

A potential donor should be aware that Battlefords Union Hospital Foundation reserves the right to sell or otherwise dispose of such property gifted to it, This is particularly so in instances where the costs or efforts to operate or otherwise manage the property are not an economic or viable proposition to the Foundation.

There are also penalty provisions which can be applied against the Foundation if it sells cultural property which has been the subject of a charitable gift to it. Accordingly, it is wise to make arrangements in advance with the Foundation, to ensure that the property is intended to be retained for at least a five year period. Otherwise the Foundation may find it necessary to refuse the gift.

[ Life Insurance Arrangements ] [ Creation of Residual / Remainder Trusts ] [ Bequests ]

In all cases we suggest that a donor obtain advice from legal advisors.

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