Langley Memorial Hospital Foundation relies on all types of donations to support the vital work undertaken at the community’s hospital. Sometimes those donations come from local fundraisers, for example, sometimes monthly cash donations, but there’s another simple way to give back that can yield significant additional benefits for donors: securities in kind.
“To encourage charitable giving, the government provides you with a tax credit when you donate to a registered charity. A further tax benefit is provided if you donate certain securities in kind,” explains Luke Berard, CFP, a financial planner with RBC Financial Planning.
“So when you donate securities directly, you get the tax benefits, and the charity wins too.”
How does it work?
Qualifying donations & recipients: Examples of securities include investments such as shares, mutual funds, interest in related segregated funds, provincial or Government of Canada bonds, and others. The donation must go to a qualified registered charity that can issue donation receipts for the gifts they receive, such as Langley Memorial Hospital Foundation.
Donations in kind: If your investment has increased in value, it can create taxable capital gains. The tax implication of that capital gain can in some cases be eliminated if securities are donated in kind.
There’s also the added benefit of receiving a donation tax receipt for the fair market value of the donation.
“The combined tax savings can be notable,” Berard says.
How Do I get started?
Donating securities in kind is a simple way to give back to your community and receive tax incentives at the same time.
If you’re considering making a donation, have your advisor review your portfolio to determine if you have any securities with large capital gains.
(It is also important to contact the charity to verify they can accept in kind donations, Berard says.)
To donate securities to Langley Memorial Hospital:
- Complete the Foundation’s Donation of Publicly Traded Securities Form and submit to your financial advisor to initiate the transfer.
- Notify LMH Foundation of your gift by sending a copy of the completed.
For more information, visit lmhfoundation.com/securities.
The information in this article is not intended to provide legal or tax advice. To ensure your own circumstances have been properly considered and that action is taken based on the latest information available you should obtain professional advice from a qualified tax and/or legal advisor before acting on any of the information in this article.
