Publicly Traded Securities

There are two advantages to donating publicly traded securities to the Star of the North Retreat House.  First, you help secure the financial stability of this great institution for future generations, and second, you may realize some great tax advantages.

When one cashes in publicly traded securities, 50 percent of the capital gain is taxable.  However, should you directly transfer them to the agent for the Star of the North, you receive a tax receipt for their full market value at the time of transfer.  In effect, you are cancelling out the taxes on the capital gains with a charitable tax deduction.

Here is an example. You have shares worth $10,000.  Of that, $2,000 is capital gains.  You would be required to pay taxes on 50% of that capital gain or $1,000.  At a 40 percent tax rate, you would pay the Canada Revenue Agency $400.  However, if you were to donate the $10,000 in securities by transferring them directly to the agent for the Star of the North, you would receive a charitable tax receipt for $10,000.  Of that, you would receive approximately half back, or roughly $5,000, in the form of charitable tax credits, thereby eliminating the capital gains tax.  Instead of paying $400, you would receive $5,000 back, and would have the satisfaction of knowing they are making a difference in our community.   It is truly a win-win situation for both you and the Star.

Publicly traded securities can be donated now, or through one’s estate plans.

For further information on donating publicly traded securities, please contact Lucie Leduc, Executive Director, at (780) 459-5511.

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