A Tax-Efficient Way to Give
When you sell publicly traded securities privately, you are taxed on 50% of the capital gains. However, if you give the securities directly to charity as a gift-in-kind, you pay no tax on the capital gains and receive a donation tax receipt for their full market value. This means that giving securities — shares, bonds, or mutual funds — which have appreciated in value is a much more tax-efficient way to give than selling the securities and donating the cash. If you are making a bequest, include directions to use any appreciated securities in your estate to make the gift to save taxes and preserve capital for your other beneficiaries.
The Presbyterian Church in Canada will receive gifts of securities for any PCC congregation or ministry. Check out the Resource section below to find a detailed one-page information sheet (with an example showing how it can cost less to give more), a bulletin insert (to introduce the idea of giving securities to your congregation), and donation forms (for individuals or estates).