Gift in Your Will

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Appreciated Securities


Make a gift of stocks; bonds; mutual funds;

flow-through shares or stock options.


Brandon Bowen, Janeway Patient Development and Rehabilitation Department

Brandon Bowen, Janeway Patient Development and Rehabilitation Department

The health care of our children is in our hands.

The tax incentives offered for gifts of publicly listed securities makes this one of the most cost-effective ways to donate to the Janeway Foundation. When you sell an appreciated stock, mutual fund, or flow-through shares, you are required to pay tax on 50% of the capital gain.  However, if you donate these stocks to the Janeway Foundation you do not pay capital gains tax.  For gifts of publicly traded securities, the inclusion rate is zero.

Example – selling your shares and donating cash.

You have shares in ABC Corporation worth $100,000 with an Adjusted Cost Base of $50,000. You wish to donate $100,000 to the Janeway Foundation charity. If you were to sell the shares and donate the cash you would trigger a $50,000 capital gain, half of which is taxable – so you would pay 49.8% of $25,000 in taxes ($12,450), minus the donation credit.

Example – donating your shares.

If you donate your shares in the ABC Corporation, worth $100,000 to the Janeway Foundation you would be exempt from the capital gains tax and would then be able to apply the full donation credit against other income in your current year’s tax forms.

Donate Cash through sale of Shares Donate
Market Value of Shares $100,000 $100,000
Adjusted Cost Base $50,000 $50,000
Capital Gain $50,000 $50,000
Taxable Capital Gain $25,000 $0.00
Tax @ 49.8% on $25,000 $12,450 $0.00
Tax Credit@ 49.8%  $49,800  $49,800
Less Tax $12,450 $0.00
Credit Remaining $37,350 $49,800
Total Cost of Donation $62,650 $50,200

Adjusted Cost Base – is an income tax term that refers to the change in an asset’s book value resulting from improvements, new purchases, sales, payouts or other factors. An adjusted cost base can be calculated on a single or a per unit basis.  

Capital Gain – a profit from the sale of property or of an investment.

If you are considering a gift of Appreciated Securities to the Janeway Foundation, we encourage you to explore the various donation options with your financial and legal advisors, ensuring that your future gift is as tax effective as possible and takes your family needs into consideration.

To make or discuss a gift of this type please contact Ruth Squires, Manager Telethon & Gift Planning, Janeway Foundation @ 709-777-4382 (B); 709-743-0095 (Cell) or ruth.squires@easternhealth.ca