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Donating publicly traded stock and securities is a tax-smart way to support the United Jewish Appeal of Greater Toronto Annual Campaign and the United Jewish Welfare Fund of Toronto (Jewish Foundation of Greater Toronto.)  You will receive a tax receipt for the full appreciated value of a donation of publicly traded stock or securities, and as of May 2, 2006, you are no longer subject to any capital gains tax.

 

To have your shares electronically transferred from your brokerage account please following the three easy steps below:

 

  1Log-in by clicking here.

  2Complete the online form.  You will then receive via e-mail a Letter of Authorization Form.

  3Print, sign & submit the Letter of Authorization Form to your financial advisor.

The UJA/UJWF Donor Services Department can help guide you through the process and provide any necessary information.  Please contact Shimmy Wenner at 416-631-5699 if you require any assistance.  Your receipt will be valued based on the closing price on the day when the shares are legally transferred to UJA/UJWF's account at one of our brokerage firms.

Benefits of making gifts of stock and securities:

  • Capital gains on publicly listed stocks and securities are tax exempt on gifts made as of May 2, 2006, when you donate your shares to UJA/UJWF rather than selling and donating the proceeds (see example below) 

  • Your receipt will be valued based on the closing price on the day when the shares are legally transferred to our account.

  • Claim charitable donations up to 75 per cent of your net income. A five year carry forward on any unused donation amount is permitted

What counts as publicly listed securities?
Your donation must be of securities that are traded on a public market in Canada or the United States. This includes stocks and mutual funds.


How do I actually save more and give more by donating gifts of securities?

Let’s say you purchased common shares in ‘X’ Company for a cost of $20,000. If the current market value of the shares has increased to $100,000, you would have a capital gain of $80,000. If you sell these shares, and donate the cash, you would need to pay tax on the capital gain. Instead, by donating the shares, you get a tax receipt for the $100,000 and pay zero capital gains tax. As a result, you now have a tax credit of $46,000, which is $18,400 more than if you had sold the shares and donated the proceeds. Thus, this method of giving is more tax-efficient.


  Sell Shares & Donate Cash Donate Shares Directly 
( a ) Fair market value  $100,000 $100,000
( b ) Adjusted Cost basis $20,000 $20,000
( c ) Capital gain $80,000 $80,000
( d ) Taxable Capital Gain (50%) $40,000 $0
( e ) Tax Credit on Donation (at 46%)  $46,000 $46,000
( f ) Tax on capital gain (at 46%) $18,400 $0
     
( e ) - ( f )  Net Tax savings $27,600 $46,000


*The chart provided above is general in nature and does not constitute legal or financial advice and should not be relied upon as a substitute for professional advice. We strongly encourage you to seek professional legal, and financial advice before deciding upon your donations to United Jewish Appeal of Greater Toronto.

 

How long does it take for my donation to reach UJA/UJWF's Brokerage Account?
That depends. Generally, most securities take a few days to get to UJA once you’ve submitted the Letter of Authorization to your financial advisor. Some securities however, can take a few weeks. (e.g., mutual funds)


What amount gets credited into your UJA account?
The amount credited to your Campaign pledge will be based on the net proceeds realized from the sale of the securities, less selling commission. 
  Please see example below:

For example, your campaign pledge for 2009 is $10,000.  You transfer 2700 shares of a certain security which closes at $3.75 per share.  If you multiply 2700 shares by $3.75 you get $10,125.  Your receipt value is $10,125. We then sell the security immediately for $3.80.  Therefore, if you multiply 2700 shares by $3.80 you get $10,260.  Then subtract $125 commission fee and your realized value is $10,135.00.  Your $10,000 pledge is covered and you have an overage of $135, which can be allocated towards next year's pledge.


What amount gets credited into my Endowment Fund?
The amount credited to your Campaign pledge will be based on the net proceeds realized from the sale of the securities, less selling commission. 


How and when do I get my tax receipt?

You will receive your tax receipt by mail after your securities have been received.  Please note: according to Canada Revenue Agency (CRA) guidelines, the value of your donation for tax receipt purposes will be determined by the closing value of the shares donated on the day that your donation is received into our account.

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For more information on donating securities to United Jewish Appeal of Greater Toronto please contact Shimmy Wenner, Associate Campaign Director at 416-631-5699 or swenner@ujafed.org.

 

Through UJA, you help preserve & strengthen the quality of Jewish life here and around the world.