Did you know that when you sell shares – even to donate the proceeds to charity – a significant portion will be taxed? This reduces the impact of your donation because 50% of the shares’ appreciated value is forfeited as tax.
When you transfer ownership of your shares to Impactus, no capital gains tax is paid. Because our broker liquidates donor-transferred shares, the full value of your gift goes to our efforts for life – not the government.
Scenario: you purchased stock for $7,000 and over time, the value of the stocks rose to $25,000. The capital gains of your investment would be $18,000.
If you were to sell the stock, tax on the capital gains would be approximately $9,000 (based on a 50% tax rate). Whereas if you donate the stock in-kind, directly to Impactus, you would pay $0 income tax on the capital gains.
The cost of donating the shares directly to Impactus would save you $4,500. See below for a detailed breakdown.
| Sell Shares & Donate Cash | Donate Shares In-Kind | |
|---|---|---|
| Current Value of Shares | $25,000 | $25,000 |
| Less: Cost of Shares | -$7,000 | -$7,000 |
| Capital Gains | $18,000 | $18,000 |
| Taxable Portion of Capital Gains (50%) | $9,000 | – |
| Taxable Portion of Capital Gains (0%) | – | $0 |
| Income Tax on Taxable Portion of Capital Gains (50%) | $4,500 | $0 |
| Sell Shares & Donate Cash | Donate Shares In-Kind | |
|---|---|---|
| Amount of Donation | $25,000 | $25,000 |
| Add: Income Tax | $4,500 | $0 |
| Less: Value of Donation Tax Credit (50% of Amount of Donation) | -$12,500 | -$12,500 |
| Cost of Donation | $17,000 | $12,500 |
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To donate by mail:
Make cheques payable to:
Heritage Christian Ministries Assoc.
246 Stewart Green SW
Suite 3260
Calgary, Alberta
T3H 3C8
Heritage Christian Ministries Association
246 Stewart Green SW, Suite 3260
Calgary, Alberta T3H 3C8
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