Donating appreciated securities directly to charity – rather than selling the assets and donating the cash proceeds – is one of the best ways to give.

Donating appreciated securities directly to charity – rather than selling the assets and donating the cash proceeds – is one of the best ways to give.

Publicly Traded Securities as a Charitable Gift

A smart approach to maximize your charitable impact

One of the most financially sound ways to make a charitable donation is with a gift of securities like stocks, bonds or mutual funds.

When you donate these types of securities to a registered charity, you pay no capital gains tax and receive a tax receipt for the full amount of the gift. This means a great tax benefit for you and generous support for a charitable cause.

Here’s an example of how it works:

Let’s say you purchased common shares in ABC Company for a cost of $1,000. If the current market value of those shares has increased to $10,000, you would have a capital gain of $9,000. If you sell those appreciated shares and donate the cash proceeds to Community Foundation North Okanagan (CFNO), you’ll owe tax on 50 per cent of the capital gain. But when you donate and transfer the shares directly to CFNO, you owe no capital gains tax and you’re able to receive a charitable tax receipt for the full value.

Bruce R. Shepherd, a Financial Advisor with Edward Jones who has been referring his clients to CFNO over the years, comments, “I always try to understand what motivates clients to do charitable giving. When their objectives are substantial, I explain how donating appreciated securities is an under-utilized and incredibly useful way to support charities. The tax-effectiveness gives them an added benefit to reduce future tax obligations!”

The Community Foundation North Okanagan has worked with hundreds of individuals and families over the years to carefully create their own personal charitable giving plan. When you make a donation of securities to CFNO you have the option to direct your gift to one or more charitable causes or organizations. CFNO offers many ways to simplify giving and maximize the impact on our community.

Caroline Fraser is a donor with CFNO. “The donation of shares gives greater tax savings and allows a larger amount to go directly to charity,” she says. “The Community Foundation allows me to make a single donation of stock electronically; they then distribute to several charities I regularly support. Thank you to CFNO for making this process so easy!”

Whether it’s setting up an endowment fund, contributing to an existing fund, or making a future gift, the Community Foundation North Okanagan works with you to meet your financial needs and your personal charitable goals.

Make the most of your giving and contact Leanne Hammond today at leanne@cfno.org or call 250-542-8655.

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