Serve > Board of Management > Stewardship > Stock
Invest in the Church's Future using a Gift of Stock
If you are thinking of making a planned gift during your lifetime or at death, consider using preferred or common shares. Once you look at the income tax implications, the idea could make sense for you.
Currently, if you sell or dispose of shares, you trigger a capital gain (or loss). You pay tax on 50 per cent of the gain. However, if you give the shares to the church, you still have a gain (or loss), but you pay no tax and receive a charitable tax receipt for the market value of the shares. By eliminating the tax, giving shares allows you to fulfil your philanthropic objectives and helps the parish with future ministry. If you cannot use the entire charitable tax credit, you can carry it forward to a subsequent tax year (up to five years).
The table below gives you an example of how it works.
| The Carealot Family | Sell Shares & Donate Cash |
Gift Shares (Current Rules) |
| Proceeds of sale/donation - (A) | $20,000 | $20,000 |
| Cost - (B) | $4,000 | $4,000 |
| Capital gain - (C=A-B) | $16,000 | $16,000 |
| Tax on capital gain (22% vs 0%) - (D) | $3,520 | $0 |
| Donation tax credit - (E) | $9,000 | $9,000 |
| Net tax benefit - (F) | $5,480 | $9,000 |
| Donor's cost of giving - (G=A-F) | $14,520 | $11,000 |
| Additional tax savings realized by gifting shares - (G1-G2) | $3,520 | |
It's hard to imagine anyone having surplus shares in their estate, but here are some examples. Did you once work for a company that had an employee share ownership program, and haven't done anything about the shares? Maybe you have a life insurance policy with a company that recently demutualized (Clarica, Canada Life, Sun Life, or Manulife). You may have received an unexpected windfall of common shares from them, and have an unrealized capital gain. Perhaps you inherited or were given shares, or maybe you have odd share lots that are difficult to sell without significant brokerage fees.
Shares are a tool that facilitates a bequest or planned gift, but the decision to give is yours after prayerful consideration. You may wish to add a diocesan or national church organization to your gift. You need to discuss it with your family and your professional advisors to make sure the gift is properly arranged.
Along the way, you or your advisors may wish to talk to us. If so, please contact the clergy, the chair of the stewardship committee (Susan Graham Walker), or the planned giving sub-committee (Peter Bennett). For reference, a sample transfer letter can be viewed by clicking here.
Please click on the following links for additional Stewardship information:
Stewardship Main Page
Charitable Annuities
Bequests (and other Planned Gifts)
Planned Giving Using Life Insurance