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Manitoba – Charitable giving got a significant boost from the federal government in 2006, with a tax change that benefits donors, community foundations and the local charities they support.
Canadians who donate stock to their local community foundation now pay no capital gains tax on the growth of those shares..
This is fantastic for donors who want to make a difference in their community and are looking for ways to reduce their tax bill at the same time. Community foundations saw a dramatic increase in donations when the capital gains tax on shares was reduced. Eliminating the tax on gifts of stock was an incredible incentive to give.
In 1997 the federal government reduced capital gains tax on donations of stock by 50 per cent. The result was a three-fold increase in gifts of publicly traded securities to charities -- from $69.1 million to $200.3 million between 1997 and 2000. The percentage of stock donations jumped from 1.6% to 3.9% of all donations.
A TD Economics report shows that Canadians hold $1.3 trillion in stocks – almost half of which are unrealized capital gains.
In 2000, during the high-tech boom, more than 60% of community foundation donations came in the form of securities. In 2005, community foundations received more than $40 million in gifts of appreciated securities.
If you are interested in discussing charitable giving and/or donating your shares please contact your Community Foundation for more information
Go to community foundation Finder by clicking on link below:
Community Finder |
