The Shuswap Community Foundation offers a variety of giving options. Whether it’s setting up an endowment fund, contributing to an existing fund, or making a legacy gift, we work with you to meet your financial needs and your personal philanthropic goals.
Gifts of Appreciated Securities
A gift of publicly traded securities can be an attractive option. The Income Tax Act provides that capital gains on securities donated to a charity are exempt from tax, but the donor will receive a tax receipt for the full appreciated value. The donor will receive a tax receipt for the value of the stock at the time of transfer, and may carry forward for up to five years any unused portions of the gift. Please talk to a Director, your professional adviser, or broker to make stock transfers easily. You may download the Share Transfers Form for when you meet with your broker.
Gifts of Life Insurance
Donors may name the Foundation as the owner and beneficiary of a new or existing life insurance policy. Tax receipts are given for either the cash surrender value of an existing policy, or for premiums paid. This is one of the most popular “planned giving” vehicles. Because there are several options available, please talk to your professional advisor for help in making this gift.
Gifts of Legacy
Involving your children and grandchildren in philanthropy is an excellent way to share your beliefs and your values. A family endowment fund established with a community foundation is a great place to start.
An endowment fund is a forever legacy and a generous commitment of giving back to your community. You and your family can build this fund, receiving charitable tax receipts which can be applied to reduce your income tax. A bequest from your estate will continue to grow the fund and your children’s, children’s, children can stay involved in the Endowment for many years to come.
A Board director or a staff member at Shuswap Community Foundation would be pleased to discuss with you the Types of Funds, such as discretionary or donor directed funds.
Gifts of Cash
A very popular way of making a gift to the Foundation is by cash or cheque. This is an attractive method for a donor who has cash available and who wants to make an immediate donation. The Foundation is able to invest the donation immediately to generate income to support community projects. The donor is provided with a receipt for income tax purposes.
Shuswap Community Foundation has linked up with CanadaHelps to make donating easy. It is convenient and quick; moreover it is not necessary to request in writing that the donation be endowed in perpetuity. The Canada Revenue Agency supports this method of making gifts to your community. Make an online donation through CanadaHelps.
(Note: Canada Helps collects a 3.5% service charge on each donation and submits the balance to the Foundation.)
A donation of shares or equity mutual fund shares is the most efficient way to give charitably.
The Canada Revenue Agency does not apply capital gains tax on donations of publicly traded securities. (Capital gains are the increase in the value of your securities over the price you paid at purchase.)
When you sell your shares for cash, you are responsible for the tax due on the gain, even if you plan to donate the proceeds from the sale. If you pay the tax out of those proceeds, there’s less money left to donate. Your preferred charity receives a smaller donation and you have a smaller donation to claim for your charitable tax credit at the end of the year.
But when you donate your securities directly to the Shuswap Community Foundation, those capital gains aren’t subject to tax. This means the Foundation receives a larger gift, and you benefit from a tax receipt for the full value of your eligible securities or equity mutual funds.
The Benefits: Give More, Save More.
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 $5,000, you would have a capital gain of $4,000.
If you sell those shares and donate the cash proceeds, you’ll owe tax on the capital gain. So, you set aside the taxes due from the proceeds, leaving you with less than the full cash value to donate, and a tax receipt which reflects the smaller donation.
But when you donate the shares directly, you owe no capital gains tax and you’re able to donate the full value. So, the Foundation gets a larger donation and you get a tax receipt which reflects your larger contribution.
How it Works
Here are some approximate figures to illustrate.
In the example below, you’re able to donate the full value of your securities to the Shuswap Community Foundation: $5,000.00. Your tax credit on that amount would be approximately $2,300, or about $920 more than if you had sold the shares and donated the proceeds as cash.
|Sell Securities and donate
the after-tax proceeds
directly to SCF
|Original Cost of Securities||$1,000.00||$1,000.00|
|Current Market Value||$5,000.00||$5,000.00|
|Tax on Capital Gain||1 $920.00||$0.00|
|Donation Amount After Tax||2 $4,080.00||$5,000.00|
|Your Charitable Tax Credit||$1,876.80||$2,300.00|
By donating shares directly, you save on taxes while contributing more to the Shuswap Community Foundation.
The Shuswap Community Foundation welcomes all gifts and donations, including share transfers.