How a Gift of Securities to Trans Canada Trail Paves the Way for Big Tax Benefits
When you donate to Trans Canada Trail, you want to ensure that your gift will have the greatest impact possible.
But did you know that one of the best ways of supporting the Trail also happens to be one of the most tax-efficient ways of giving?
Donating securities — including appreciated stocks, bonds and mutual fund units — ensures your generosity goes the extra mile, while also providing notable tax advantages.
Here is a quick breakdown of the benefits of a gift of securities to Trans Canada Trail.
You won’t pay tax on capital gains
Under Canada Revenue Agency rules, a gift of securities to a qualified charitable organization like Trans Canada Trail comes with significant tax benefits.
Most people who donate securities that have appreciated in value pay no tax on the capital gain.
This contrasts sharply with selling the securities on the market and then giving the proceeds to Trans Canada Trail in cash. In this case, you would have to pay tax on any resulting capital gains.
Making a gift of securities directly to us also means that you will receive a charitable donation receipt for the fair market value of the securities at the time of donation.
You can donate securities as part of your estate plans
Not ready to make a gift of securities right away? No problem! This way of supporting Trans Canada Trail can also be incorporated into your estate planning.
By leaving a gift of securities to Trans Canada Trail in your will, your estate will receive the same tax benefits listed above. In addition, if you donate registered assets through your will, your legal representative can then claim a tax credit for up to 100% of the net income on your final tax return, resulting in considerable benefits for your estate and heirs.
Your gift goes far, quickly
Your gift of securities is a powerful contribution to the future of the world’s longest multi-use trail system. The tax-effective process of donating securities directly to us means that we receive a bigger gift from you — maximizing your impact.
When we receive your securities, we can sell them immediately and allocate funding where it is needed most. With your support, we can continue to maintain and enhance the Trail for future generations, keeping it safe and accessible for all.
An easy way to support Trans Canada Trail
Making a gift of securities to Trans Canada Trail is simple and straightforward.
All it takes are three easy steps:
- Consult your financial advisor to decide which investments are best to donate.
- Ask your broker to transfer securities to Trans Canada Trail by completing the transfer form.
- Contact Trans Canada Trail to let us know you have made your gift. That way, we can issue you a tax receipt and ensure you are recognized as a valued supporter.
For more information, visit our Gift of Securities page or contact Janice Nault, Director, Annual Giving: jnault@tctrail.ca or 800-465-3636 ext. 4354.
