Give a gift of appreciated property and publicly-listed securities (stocks, bonds, mutual funds)

Did you know that a few years ago, the federal government eliminated capital gains taxes on all gifts of publicly-traded securities to public charities, including the David Suzuki Foundation. The donation must be an “in kind” transfer of the security itself, not the cash proceeds from the sale of the security. Such a transfer is easily made electronically from your investment account.

The David Suzuki Foundation has a policy of issuing a tax receipt for the closing value in Canadian dollars on the date the shares are received into its brokerage account. If the shares are hand-delivered or mailed, a properly executed power of attorney is required and the Foundation has a policy of issuing a receipt for the closing value in Canadian dollars on the date the shares are received and accepted.

The Foundation has a policy to sell shares on the same date they are received, or as close to it as possible.

Why donate securities?

• As a donor you will receive great tax benefits and receive an immediate donation receipt.
  
• Securities are easily handled and can be transferred physically via delivery or electronically.
  
• As illustrated by this table, you increase your current after-tax cash flow:

Impact of Federal Budget Provision to Eliminate Capital Gains Tax on Publicly Traded Stock and Securities (Marginal tax rate at 46% for illustration)

Donor sold the Appreciated Publicly Traded Stock or Security and donated the cash proceeds (No capital gain reduction)	Donated before May 2, 2006 Budget Appreciated Publicly Traded Stock or Security (50% capital gain reduction)		Donated after May 2, 2006 Budget Appreciated Publicly Traded Stock or Security (100% capital gain reduction)
Fair Market Value (FMV) at time of disposition	$10,000	$10,000	$10,000
Cost Base (Original cost of shares)	$2,000	$2,000	$2,000
Capital Gain	$8,000	$8,000	$8,000
Taxable Gain (% of Gain)	$4,000 (50% of Gain)	$2,000 (25% of Gain)	$0 (0% of Gain)
Tax Credit from Donation (46% of FMV)	$4,600	$4,600	$4,600
Tax on Gain (46% of Taxable Gain)	$1,840	$920	$0
Tax Savings	$2,760	$3,680	$4,600

For more information, we invite you to contact the David Suzuki Foundation by or by telephone at 1-800-453-1533 or 604-732-4228.