Invest in the Church's Future using a Gift of Stock
If you are thinking of making a planned gift during your lifetime or at death, consider using preferred/common shares or units of a mutual or segregated fund. Once you look at the income tax implications, the idea could make sense for you.
Currently, if you sell or dispose of shares/units, you trigger a capital gain (or loss). You pay tax on 50 per cent of the gain. However, if you give the shares/units to the church, you still have a gain (or loss), but now your capital gains inclusion rate is 0%, not 50%, and you receive receive a charitable tax receipt for the market value of the shares/units. By eliminating the tax, giving shares/units allows you to fulfil your philanthropic objectives and helps the parish with future ministry. If you cannot use the entire charitable tax credit, you can carry it forward to a subsequent tax year (up to five years).
The table below gives you an example of how it works.
It's hard to imagine anyone having surplus shares in their estate, but here are some examples. Did you once work for a company that had an employee share ownership program, and haven't done anything about the shares? Maybe you have a life insurance policy with a company that recently demutualized (Clarica, Canada Life, Sun Life, or Manulife). You may have received an unexpected windfall of common shares from them, and have an unrealized capital gain. Perhaps you inherited or were given shares, or maybe you have odd share lots that are difficult to sell without significant brokerage fees.
Shares or segregated/mutual fund units are a tool that facilitates a bequest or planned gift, but the decision to give is yours after prayerful consideration. You may wish to add a diocesan or national church organization to your gift. You need to discuss it with your family and your professional advisors to make sure the gift is properly arranged.
Along the way, you or your advisors may wish to talk to us. If so, please contact the clergy or Peter Bennett of the Stewardship Committee. For reference,to arrange the gift, the Letter of Direction to the Diocese of Toronto can be viewed by clicking here.
If you wish to calculate the benefit of a share/unit donation, you can view a calculator from Mackenzie Investments by clicking here.
Please click on the following links for additional Stewardship information:
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