Gifting securities is a cost-effective way to make a donation with a substantial tax benefit.
- You will pay NO tax on capital gains
- You will receive a tax receipt for the fair market value of the securities
- You will reduce your taxes
- Your gift will help purchase medical equipment that is essential to patient care
Simply download & complete an easy form to make your electronic gift of securities to the Ajax Pickering Hospital Foundation. Or contact our office at 905.683.2320 ext 11501 to receive a copy in the mail.
Below illustrates why donating shares is more advantageous to you than selling them and donating the profits:
| Sell shares and donate cash | Donate shares directly | |
|---|---|---|
| Current value of shares | $50,000 | $50,000 |
| Amount paid for shares | $10,000 | $10,000 |
| Capital gains | $40,000.00 ($50,000 current value minus $10,000 purchase price) | $40,000.00 ($50,000 current value minus $10,000 purchase price) |
| Tax on capital gains | $10,000 ($40,000 capital gains x 50% taxable gains x 50%** assuming gift is made in Ontario at marginal tax rate of 50%) | $0.00 (No capital gains tax on donated shares) |
| Tax credit | $25,000.00 ($50,000 donation x 50%**) | $25,000.00 ($50,000 donation x 50%**) |
| Net savings from donation | $15,000.00 ($25,000 tax credit minus $10,000 tax on capital gains) | $25,000.00 |
| TOTAL tax savings from donation | $15,000.00 ($25,000 tax credit minus $10,000 tax on capital gains) | $35,000.00 ($25,000 tax credit PLUS $10,000 in tax on gain not paid) |
| Net cost of gift | $35,000.00 ($50,000 gifts minus $15,000 total tax savings) | $15,000.00 ($50,000 minus $35,000 total tax savings) |
