You can name the Discovery Centre as a beneficiary of your RRSP, RRIF (Registered Retirement Income Fund), publicly traded securities, stocks or other assets.
When you make a gift in this way, you can make a larger charitable gift than you may have thought possible. At the same time, because your gift comes from assets rather than income, it receives a more favourable tax treatment than a direct monetary donation.
Here’s an example of how it works:
Let’s say that Jane purchased common shares in ABC Company at a cost of $1,000. If the current market value of those shares has increased to $5,000, she would have a capital gain of $4,000.
If Jane sells those shares and donates the cash proceeds to her favourite charity, she will owe tax on the capital gain. So, she sets aside the taxes due from the proceeds, leaving her with less than the full cash value to donate. Her tax receipt will reflect the smaller donation.
However, if Jane donates the shares directly to the charity, she will owe no capital gains tax and will be able to donate the full value. In this way, the charity receives a larger donation and Jane receives a tax receipt reflecting her larger contribution.
If you wish to donate securities or are acting on behalf of a donor who plans to do so, please contact:
Wes Guthro, Director of Partnerships