Using your investments to donate to Royal Columbian Hospital Foundation
Directly donating your publicly traded stocks, bonds and mutual funds (also known as securities) rather than cash to RCH Foundation can provide significant ganis for both you and the hospital.
When you sell your securities, a tax is charged on the profit (capital gains) you receive as a result of selling your securities at a higher price than what you originally paid for them.
By directly donating your securities to RCH Foundation, you are not charged tax on the profit you received, and RCH receives the greatest value from your donation.
How it works
- You determine which securities or mutual fund holdings you wish to donate
- Instruct your investment professional to electronically transfer the shares or, you can personally endorse a share certificate and deliver it to RCH Foundation
- The date of the gift is the date the shares are received into RCH Foundation’s account
- The fair market valuation of the gift is the closing market value on the date of the gift
- For mutual funds, the fair market valuation is the bid price on the date of the gift
Benefits to you
- You will pay no capital gains tax on the appreciated value of your securities (this would not be the case if you sold your securities and then made the donation)
- We’ll issue you a tax receipt for the full market value of your gift and you will receive the tax credit toward your annual income tax
Benefits to RCH
- Your charitable deduction can be claimed against as much as 75 per cent of your net income from sources such as pensions, RRIFs, investment income, etc. and any usused deductions can be carried forward for the next five years
- RCH Foundation will benefit from the maximum financial value held in your securities, so more money can be put to work for the hospital
Gift of securities in your will
When you leave a gift of securities in your will to RCH Foundation, the tax credit can be used in the year of death for up to 100 per cent of that year’s income and/or carried back one year.
To avoid confusion or delay in settling your estate, please ensure that you specifically name Royal Columbian Hospital Foundation as the beneficiary.
We encourage you to share your intention with us. We would like to be able to express our appreciation to you personally for your committment and future support.
If you would like to make a gift of securities to RCH Foundation, please complete and submit our Securities Transfer Form.
For more information, please contact Laurie Tetarenko, Vice-president, at 604.520.4179.