GIFTS OF SECURITIES
A GREAT WAY TO SUPPORT THE WORK OF VON
AND RECEIVE SIGNIFICANT TAX ADVANTAGES IN RETURN

Donating gifts of securities to registered charitable organizations such as VON has never been an easier or more attractive option for Canadian donors.

Canada’s Federal Budget of May 2006 has eliminated capital gains taxes on donations of publicly listed securities to registered charities such as VON.  Publicly listed securities include shares in publicly traded companies, mutual funds, etc. 

Previous to this year’s Federal Budget, individuals donating securities to a charitable organization paid tax on 25% of any capital gain triggered by the donation.  The change, now in effect, eliminates all taxes on the capital gain.  The result is that a donation of publicly traded securities is now one of the most attractive ways for an individual to support the work of organizations such as VON, and also realize significant tax benefits in the process.

VON Canada Foundation and the Branches of VON Canada are pleased to accept gifts of publicly traded securities and have necessary forms available to receive such a donation, should you choose VON as the beneficiary of your gift.

Here’s an example of how this type of donation works.  Several years ago, “John” purchased shares in a publicly listed company.  The value of these shares is now twice what the shares were worth when he purchased them.  If John were to sell the shares and then donate the funds to VON Canada Foundation, a capital gain for the difference in value is realized, and taxed accordingly.

However, because of the changes described above, if John directly transfers the same shares as a gift to VON Canada Foundation, no tax will be levied on the capital gain.  This saves John significant tax costs and allows him to provide a generous tax-deductible contribution, worth the entire appreciated value of the gift of shares, to support the work of VON.

Making a donation of securities is not only smart – it’s easy.  For your convenience, VON Canada Foundation has produced a simple form to assist with this process.  To obtain this form and make your contribution today, visit www.voncanadafoundation.ca (where you may download the form under “Gifts of Securities), email us at foundation@von.ca or call (905) 415-1208 Ext. 5129 and we’ll be pleased to mail a hard copy.  Once you have the form in hand, provide it to your broker, who will be able to complete the transaction on your behalf.

Once the transfer of securities to VON’s broker takes place, VON will issue you a tax receipt for the Fair Market Value of the securities on the date that the transfer takes place.  Fair Market Value is defined as the price at the close on the trading day upon which the shares are transferred to VON.

If you are considering a gift of securities or any other gifts to VON that may have tax implications, we recommend that you consult your financial advisor.

For more information, contact your local VON Branch or VON Canada Foundation (phone: 905-415-1208) or visit www.voncanadafoundation.ca

Thank you for considering VON when you make your charitable giving decisions! 

Jeff Beach
Executive Director
VON Canada Foundation