Gifts of Securities

Wonder’neath Art Society welcomes gifts of securities, such as stocks, bonds and mutual funds. The federal government has created special incentives to encourage such gifts by eliminating the Capital Gains Tax. This change to the income tax act makes giving securities even more beneficial to you and Wonder’neath Art Society.

In Canada, when you dispose of capital property, with some exceptions, one-half of any capital gain (the difference between the original cost of the property and the current value) must be taken into your taxable income. This can significantly increase your income tax payable in a given year.

However, when you transfer publicly listed securities directly to Wonder’neath Art Society, none of the gains are taxed; and you receive a tax receipt for the full market value of the securities! This is true whether the gift is made now or through your Will. In order to qualify for this special tax treatment, the securities must be transferred directly to Wonder’neath Art Society and not sold with the proceeds contributed.