A Tax-Efficient Way to Give Now to Vitally Needed Ministries
If you sell publicly traded securities privately, you are taxed on 50% of the capital gains. However, if you gift the securities directly to charity, you pay no tax on the capital gains while also receiving a donation tax receipt for the full market value of the securities. This means that the gifting of securities which have appreciated in value is a much more tax-efficient way to give to the church than selling the securities privately and then donating the cash.
Giving a gift of securities to the PCC is simple. At your direction, your broker will electronically transfer your securities to The Presbyterian Church in Canada’s brokerage. The PCC’s broker then sells the stock very soon after receiving the transfer. Based on the fair market value of the stock on the day it was donated, the PCC issues you a charitable tax receipt. The PCC then directs the proceeds of the sale (reflecting any change in value from date of sale minus the broker fees) to whatever PCC congregation, program, or ministry you wish.
You may also wish to consider donating listed securities in your will. Because capital gains will not be taxed, your estate may realize considerable tax savings from your gift while preserving capital for your beneficiaries.