A gift of securities is the easiest tax-efficient way to maximize the impact of your donation.
Securities gifts can include stocks, mutual funds, segregated funds, bonds, flow-through shares, and employee stock options – we accept most publicly traded securities.
When transferring securities directly to us, the capital gains you realize are left untaxed, saving you money. That means you can put more money into the cause you care about for the same cost, maximizing your impact. With the tax on capital gains now reduced to zero, this is the most tax-effective way to donate to United Way.
- You receive provincial and federal tax credits, making this more efficient than selling the securities and donating the cash proceeds.
- You receive a tax receipt for the full market value of the security on the day the transfer is completed.
- You can also leave securities to United Way in your will, thereby reducing the tax burden on your estate.
By making a gift of securities to United Way Windsor-Essex County, you’re supporting our community’s most vulnerable in a way that makes an immediate difference. See the impact.
To illustrate how transferring securities directly benefits you, here are two hypothetical scenarios:
| SCENARIO 1 Pat sells shares and donates cash | SCENARIO 2 Pat donates shares directly to United Way | ||
| Current value of shares | $25,000 | Current value of shares | $25,000 |
| Original cost of shares | $5,000 | Original cost of shares | $5,000 |
| Capital gain | $20,000 | Capital gain | $20,000 |
| Taxable portion of capital gain (50%) | $10,000 | Taxable portion of capital gain (0%) | 0% |
| Capital gain tax (assuming 46%)* | $4,600 | Capital gain tax (0%) | 0% |
| Donation of cash | $25,000 | Donation of cash | $25,000 |
| Tax credit (45% of donation of cash)** | $11,250 | Tax credit (45% of donation of shares)** | $11,250 |
| Net credit (tax credit – capital gain tax) | $6,650 | Net credit (tax credit – capital gain tax) | $11,250 |
| Net cost (gift – net credit) | $18,350 | Net cost (gift – net credit) | $13,750 |
** The tax credit for donations is valued at approximately 45% income, for donations in excess of $200
*** These figures are for illustration purposes. People should seek expert advice to discover their advantage for donating securities.
| Pat’s advantage by donating shares instead of cash (Net cost option 1 – Net cost option 2)*** | $4,600 |
Giving is simple
Consult your financial advisor to decide which investments make the most financial and philanthropic impact. Then ask your broker to request a transfer of securities to United Way Windsor-Essex County by completing the share transfer form. We’ll communicate our acceptance and will ensure your transaction is completed quickly so your donation can get to work.
And of course, you can choose to give a gift of securities right now or as part of your estate and will planning.
Complete this Share Transfer form. Fill out all the information including your signature and email it to Andrew Bothamley
We’re here to help, please contact Andy if you have any questions or would like additional information:
Andrew (Andy) Bothamley, Senior Vice-President, Finance and Operations
abothamley@weareunited.com 519-259-6159
Disclaimer:
This is intended to provide general information and should not be construed as legal or other advice without first consulting with your legal and/or financial advisor.
Acceptance of Securities:
i. UWWEC reserves the right at all times to decline a donation of securities.
ii. Such right may be exercised by UWWEC within a reasonable period after physical or electronic donation of securities takes place.
iii. All risk attaching to the security and value of securities shall remain with the donor until such time as acceptance of the securities has been communicated to the donor in writing.
iv. No securities, other than those traded on a prescribed stock exchange, as defined in paragraph 1.A.v. below, shall be accepted in terms of this policy, in the absence of a formal agreement between the donor and UWWEC.
v. For purposes of this policy, a prescribed stock exchange shall be one listed on a Designated Exchange as described by the federal government’s Department of Finance.
vi. All securities offered to UWWEC as a donation shall be scrutinized for thinly traded volumes or other restriction on immediate sale.
vii. The donation of any such restricted securities would be the subject of a written agreement entered into by UWWEC and the Donor, prior to their acceptance.
viii. The receipt of gifts of securities will comply with our Donor Designation and Gift Acceptance Policy.
B. Acceptance of securities requires both the appropriate documentation to be received from the donor, and delivery of the securities to UWWEC’s brokerage account.