When you make a gift of securities to Habitat for Humanity GTA, you receive a charitable tax receipt for the full amount of your gift. While marginal tax rates vary from province to province, on average, your donation will generate a tax credit worth approximately 45% of the value of the gift. That alone makes donating securities a wise financial move as well as a way of helping working, low-income families move into their Habitat homes.
There are other tax advantages as well when you transfer stocks, bonds and other investments to Habitat. Usually, when you sell a security, you must pay tax on 50 percent of the capital gain, but when you transfer the security directly to a charity, without first converting it to cash, there is no taxable amount on the gain. Publicly listed securities include shares, mutual funds, options and futures listed on most stock exchanges in Canada and around the world.
example: benefits of a gift of securities
Consider also leaving securities to Habitat for Humanity GTA in your will. This can lessen the tax burden for your heirs. Your estate will be excluded from paying tax on any capital gains generated by the security. The more securities and other assets you leave to charity, the bigger the tax credit for your estate, and the fewer taxes that will have to be paid. Canada Revenue Agency allows you to donate up to 100 per cent of your estate’s net income to charity.