Support Us with a Gift of Appreciated Securities
The 2006 Federal Budget announced that there will no longer be any
capital gains tax payable on donations of publicly traded securities
made on or after May 2, 2006.
Donors should consult with their professional advisors with
respect to authoritative advice on potential tax savings for gifts of
securities.
This enhancement creates an excellent
gifting mechanism that may multiply the benefits to you and to NET Ministries of Canada.
THE NEW RULES ALLOW YOU TO:
> realize significant
profits from the appreciated securities you wish to donate
> pay no income tax on the
gains realized
> make a generous gift to NET Ministries of Canada
> make use of the excess
tax credit generated from this gift to reduce other tax liability
The sum of the parts is
GREATER than the individual parts.
| Sell the shares and donate Cash to Charity | Donate shares to Charity | ||
| Purchase Price | $10,000 | $10,000 | |
| Current Value | $50,000 | $50,000 | |
| Capital Gain | $40,000 | $40,000 | |
| Taxable Capital Gain @ 50% | $20,000 | $0 | |
| NET Tax Payable @ 45%* | $9,000 | $0 | |
| Benefits | Pay $9,000 in taxes | Pay $0 in taxes | |
| *Tax rates vary in provinces |
TO QUALIFY FOR THIS SPECIAL TAX
TREATMENT
The Securities Must:
1. Be publicly traded securities
which include:
> Stocks or shares listed on
an approved stock exchange
> Units or shares in a
Mutual Fund
> Units of a segregated fund
trust from an insurance policy
2. Have appreciated in value
3. Be donated in kind to a charity
or public foundation
> Not sold by donor
> Ownership transferred
directly to NET Ministries of Canada
Maximize your Tax Benefits with a Gift of Financial Securities
NET Ministries of Canada has an account with TD Waterhouse that will receive any type of security to support our mission. If you are interested in making a donation of stock or securities in order to support the faith of young people, please contact us or your financial planner to determine the best time to transfer the assets to NET Ministries of Canada to maximize your tax benefits.Gift of a RRSP / RRIF
Part or all of a RRSP
or RRIF – balance could be left to NET Ministries as beneficiary or by one’s
will. Could be done during a donor’s
lifetime in whole or in part.
Benefit to Donor
Donation receipt
to offset tax on distribution of funds
Control of assets
until the donation is made
Benefit to Net Ministries
Access to funds on
death of donor
