Frequently asked questions:
How do I save more and give more by donating gifts of securities?
If you purchased common shares in ‘X’ Company for a cost of $20,000 and the current market value of the shares has increased to $100,000, you would have a capital gain of $80,000. If you sell these shares, and donate the cash, you would need to pay tax on the capital gain. Instead, by donating the shares, you receive a tax receipt for the $100,000 and pay zero capital gains tax. As a result, you now have a tax credit of $46,000, which is $18,400 more than if you had sold the shares and donated the proceeds. Thus, donating gifts of securities is more tax-efficient.
What will the value of my receipt be?
Your receipt will be valued based on the closing price on the day when the shares are legally transferred to the Jewish Foundation’s brokerage account. Please note: according to Canada Revenue Agency (CRA) guidelines, the value of your donation for tax receipt purposes will be determined by the closing value of the shares donated on the day that your donation is received into our account.
How long does it take for my donation to reach the Foundation’s Brokerage Account?
Generally, most securities take a few days to transfer once you’ve submitted the Letter of Authorization to your financial advisor. Some securities however, can take a few weeks. (e.g. mutual funds).
How much can I claim?
Claim charitable donations up to 75 per cent of your net income. A five year carry forward on any unused donation amount is permitted.
What counts as publicly listed securities?
Your donation must be securities that are traded on a public market in Canada or the United States. This includes stocks, mutual funds and REITs.
What amount gets credited into my Fund?
The amount credited to your fund will be based on the net proceeds realized from the sale of the securities, less selling commission.
How and when do I get my tax receipt?
You will receive your tax receipt after your securities have been received.
The UJA/UJWF Donor Services Department can help guide you through the process and provide any necessary information. Please contact the Foundations stewardship officer, Eyal Golan at 416.632.2883 x5268 if you require any assistance.