Donation of Securities and Related Tax Benefits

The advantage of donating securities - is that making your gift of listed securities or mutual funds as a donation to a charitable organization can eliminate the capital gains tax you would have to pay if you first sell the securities and then donate the proceeds from the sale.  You also still get the donation tax credit.  See below for a detailed example.

If you prefer to donate securities to St. Philip's, please use the form from the Diocesan Office, see the downloads section at the bottom of this page, and coordinate with your Broker or Investment institution. Key points regarding this form:

  • Field: Parish, Ministry or Related Group whom the proceeds of these securities should go to:
    Enter one of the following:
    • St. Philip's General Fund
    • St. Philip's Income Fund
    • St. Philip's Endowment Fund
    • St. Philip's Capital Campaign
    • ...or talk to the Treasurer to ensure your donation is directed according to your wishes.
  • Field: To (relinquishing institution)
    • Enter the name of the financial institution holding your securities
  • Field: Number of shares/units or dollar value
    • Enter the number of shares/units, a dollar value is not accepted by some institutions.
  • Send the completed form to your broker or the financial institution holding your securities.

Note that securities donated in this way are sold upon receipt and the Diocesan Office sets the proceeds aside for St. Philip's  Also tax receipts for donations made in this way will be mailed to you by the Diocesan Office rather than St. Philip's.

Fee Information

Fee information updated November 2024; updates are from Finance at the Diocese of New Westminster.

  • There are no fees for mutual funds.
  • For securities donated in this way, the minimum fee is $125 and the maximum fee is $300 for larger donations. 
  • Fees, where applicable, are deducted from the proceeds of the sale, after the security is received and sold.

Example

You own shares that you purchased a few years ago for $4,000 and now they are worth $10,000.  When you sell them you will have a capital gain of $6,000 and half of the capital gain [$3,000] will be taxable.  

Assuming your tax rate is 40%, your tax bill from the sale will be $1,200, but if you donate the shares to a charity, the gift is exempt from the capital gains tax and the total value of your gift is tax deductible, giving you a sizable tax credit and potential refund.

A gift of shares now valued at $10,000 results in the following example of tax savings:

  • Donation tax credit 43.7% of $10,000: $4,370
  • Capital gains tax savings: $1,200
  • Total tax savings: $5,570

In this example, the $10,000 gift of shares resulted in additional tax savings to the donor of $1,200 and when combined with the tax credit provides a total tax savings that is more than the original purchase price of the donated shares.

Downloads