Ways to Give
Making a Gift of Stock/Publicly Traded Securities
Making a donation of publicly listed securities to The WoodGreen Foundation is a wonderful way to not only support the work of WCS but is an appealing option for some donors as these donations are exempt from all capital gains taxation. By donating publicly traded shares to The WoodGreen Foundation you will not pay the capital gains tax normally associated with such a sale. This means that you receive a tax receipt for the full value of the shares but are NOT taxed on any gain. Your charitable receipt will reflect the closing price of the shares on the date they are received by The WoodGreen Foundation for tax purposes. Note: Actual shares must be transferred to The WoodGreen Foundation. If shares are sold and then the proceeds donated to The WoodGreen Foundation, the enhanced tax benefits do not apply.
| Example | Sell Stock and Give Proceeds to The WoodGreen Foundation | Donate Stock Directly to The WoodGreen Foundation |
|---|---|---|
| Fair market value of stock and amount of tax receipt | $25,000 | $25,000 |
| Cost base | $5,000 | $5,000 |
| Capital gain realized | $20,000 | $20,000 |
| Taxable capital gain | $10,000 (50% of gain) | $0 |
| Value of tax receipt for gift (46%* of $25,000) | $11,500 | $11,500 |
| Tax due on gain | $4,600 (46%* x $10,000) | $0 |
| Tax savings by making gift | $6,900 | $11,500 |
*A donation tax credit will be calculated and claimed in the donor’s tax return for the year. A combination of the Federal and Provincial tax credits will result in a total benefit of approximately 46%, based on the donor’s net annual taxable income for the example above
How to make a gift of publicly traded securities to The WoodGreen Foundation
To assist donors, The WoodGreen Foundation has made making a gift of securities a simple two-step process. The entire transaction can be easily accomplished over the phone by calling The WoodGreen Foundation at (416) 645-6000, ext. 4006 and asking to speak with the VP Development, Michelle Kerr, who will assist you in:
Completing a share transfer form – available online
Transferring your securities to The WoodGreen Foundation’s brokerage account. (Provided on the share transfer form)
The WoodGreen Foundation will then issue a charitable tax receipt representing the closing price of the shares on the date that they are received.
The donor will report the sale of these securities in their tax return when completing CRA’s T1170 form and not include any taxable capital gain as a result of this transaction.
Making a Gift of Stock Options
If securities acquired under an employee stock option agreement (or proceeds from the sale thereof) are donated to The WoodGreen Foundation, the donor:
- Eliminates the employment benefit that the donor would normally be required to take into income
- Receives a tax receipt for the fair market value of the shares or proceeds, depending what is contributed provided that the security is a publicly listed security or a share or unit of a mutual fund and the donation is made in the same year and within 30 days of the exercise date.
To do this the donor must exercise the options and instruct the broker to immediately sell the shares. The donor then instructs his/her broker or the company selling the optioned shares to send a cheque to The WoodGreen Foundation for the full proceeds from the sale. Alternatively, the donor can donate the securities (after the options have been exercised) to the charity without selling them.
For any question about making a gift of stock/publicly traded securities please contact: Michelle Kerr, VP Development at (416) 645-6000 ext. 4006, mkerr@woodgreen.org.
Estate Gifts
More and more Canadians are discovering estate planning as another way to give to their favourite charities. For some it is a way to ensure that their memory lives on, for others it is a way to ensure that their favourite charity can continue its work. A gift in a will – an “estate gift” also helps mitigate tax implications when an estate is being transferred to surviving relatives. An estate gift allows you to defer your gift which gives you the opportunity to provide a significant gift, without impacting your existing finances or lifestyle.
Donors who have remembered WoodGreen in their will are supporting the organization in many ways; by enhancing our programs and client experiences and in many cases allowing us to improve on our facilities and expand our services.
How to leave a gift in your will to WoodGreen
The most common and often simplest way to make an estate gift is a charitable “bequest”. A bequest in a will may specify a certain sum of money, a particular asset, or a portion of the estate, to be donated to The WoodGreen Foundation. You don’t have to tell us that you have included WoodGreen in your will, but we would like to know so we can say thank you and also understand if there is a specific area within our organization you would like to support with your bequest. Telling us also doesn’t mean that you can’t change your mind later. You can alter your will at any time.
Because a bequest is revocable, it provides no current income tax credit. However, the estate will be entitled to a donation receipt for the full value of the bequest. This can significantly reduce the tax payable with the estate’s final income tax return. In gifting by bequest, donors should consider providing WoodGreen with a copy of the clause in the will pertaining to the bequest.
If you already have a will, and would like to include The WoodGreen Foundation in it, you can do so by adding a codicil. A codicil is a supplementary paragraph added to your present will describing your gift intentions.
For questions, please contact Michelle Kerr (416) 645-6000 ext. 4006, mkerr@woodgreen.org.
Other Ways to Give
There are other options to plan your future giving. Let our Foundation team help you discover what best suits your needs. We also suggest that you contact an advisor to help you with your decision.
Gift of Life Insurance
With a gift of life insurance, a donor can give a significant future gift and create a charitable legacy – ensuring their support continues even after death. Not only does WoodGreen benefit, but the donor or their estate receives sizable tax savings either during their lifetime or thereafter, depending on how the arrangement is structured.
Gift of Publicly Traded Securities
By leaving a gift of securities in your will, your estate will be able to take advantage of generous tax incentives. There are no capital gains taxes on gifts of publicly traded securities to public charities.
Gift of RRSP and RRIF
Remaining funds in a donor’s RRSP and RRIF can be gifted to WoodGreen by naming the WoodGreen Foundation as the beneficiary of the plan. Upon your passing, WoodGreen will receive the proceeds and your estate will receive the charitable tax receipt.
For questions, please contact Michelle Kerr (416) 645-6000 ext. 4006, mkerr@woodgreen.org.