If you own publicly listed securities, you may wish to consider donating the securities directly to Out On Screen. Publicly listed securities include shares, bonds and mutual fund units. Donating securities directly to Out On Screen provides donors with a greater tax advantage than selling the securities and donating the cash directly.
All donations of securities to Out On Screen are now handled through CanadaHelps.org, a nonprofit charity which works to promote and facilitate charitable giving in Canada.
Once you have consulted with your financial advisor, you can begin the process of donating securities by clicking either the English or French button on the right.
The increased value of a security, including stocks, bonds, and mutual funds, is called the capital gains. When you sell your securities, half of the the capital gains’ value is added to your taxable income in the year of sale. This can subject you to additional tax if you choose to sell your stocks in order to acquire cash for the purpose of making a donation. However, if you donate your securities directly to a registered charity, such as Out On Screen, none of the capital gain is included in your taxable income, and you are still eligible for a full charitable donation tax receipt.
By donating your stocks directly to Out On Screen, rather than cashing them to donate an equivalent value in cash, you can make use of your non-cash assets in a way which may provide you with many tax benefits.
The chart on the right provides an example of the tax benefits available to you through a gift of securities.
Please note that the income inclusion rate will be reduced to zero only if the securities are transferred in kind to the charity. The tax exemption does not apply if the securities are sold first and the cash proceeds are donated.
Canada Helps will process your donation and issue a charitable donation receipt to you for your tax purposes. The value of the tax receipt will be equivalent to the value of the stock on the day it was received and sold by Canada Helps.
Canada Helps will remove a small fee for facilitating the donation process – between 2% and 3% dependent on the total value of the donation – and deposit the remaining funds into Out On Screen’s account. For more information on Canada Helps and their fee structure for gifts of securities, please visit their website by clicking here.