Gifts of Property
Making a gift of property can be a mutually beneficial way to support the important work of Shepherds of Good Hope through their Foundation. You may choose to make a gift of property outright or you may irrevocably assign ownership of the property now and receive limited tax benefits while enjoying the property for the rest of your life. The eventual sale of the property will provide funds to support Shepherds of Good Hope programs and services you designate.
When planning a gift, consider the following:
Securities/Investments: Listed securities, including stocks, bonds, mutual funds, RRSPs and GICs can be assigned to a charity. You may choose to donate only the earnings from dividends and interest. Recent changes in tax law have made gifts of securities particularly appealing.
Normally, when you sell securities, tax must be paid on 50% of any capital gain (the increase in value, since you acquired the securities). However, when you donate the same securities to a charitable organization, you will not pay tax on the capital gain. In fact, the combined benefit of paying no tax on the capital gain and the charitable tax receipt you receive on the entire amount provides excellent tax benefits when making your charitable gift.
When you donate securities, you will receive a charitable donation receipt for the fair market value of the securities, just as if your gift had been a cash donation. (The value will be based on the closing value of the security on the day that the stock is donated to Shepherds of Good Hope Foundation). You will receive a charitable receipt for the entire amount of the gift, which you can then apply to your current taxes.
Real Estate: Houses, cottages, commercial buildings and land can be valuable sources of funds. When the property is sold all or part of the proceedings can be used to support Shepherds of Good Hope programs and services through its Foundation. A tax receipt will be issued for the market value of the real estate.
Personal Property: Jewellery, antiques, art and vehicles are examples of personal property that can be used to make a significant charitable contribution. As all property has cash value the donor is entitled to a tax receipt for the fair market value of the property. Depending on the type of property and the specific circumstances, an independent appraisal may be required to determine the value.
** There are many tax implications relating to the donation of property. For example, artists and collectors who donate from their collections may have to declare a portion of the value as income. A gift may be considered to be the disposition of capital property, so the donor may have to pay tax on a capital gain. However, the donation tax credit will usually exceed the tax on the gain, resulting in a savings.
A financial adviser can help you determine how a gift of property can best meet your needs while helping a cause you support.
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