Appreciated Securities

Gifting Appreciated Securities

For several years now I have been using Christian Stewardship Services for making charitable donations. The most tax effective way of doing this is by donating publicly traded shares that have appreciated in value. Normally disposing of such securities attracts capital gains tax but for several years now this capital gains tax has been cut in half if you donate these shares to a registered charity.

In the recent federal budget this method of donating has even made more attractive by totally eliminating the capital gains tax.

CSS has always been very co-operative and professional by their selling the donated shares and transferring the proceeds to the charities that I designated. I then receive a tax deductible receipt for the full amount donated.

Another advantage has been that my stock broker at RBC- Dominion Securities has not charged me any commission for transferring my shares to CSS. because I donated to my favourite charities.

I understand that not many people have been using this method of donating. I certainly will continue using it, especially now under the Conservative tax regime, as long as I have some securities that have appreciated.

John Rozema, CSS Client

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

New Incentive for Gifts of Publicly Listed Securities

I have yet to meet someone who actually enjoys paying taxes. While much of day to day living simply relies on the benefits which are derived from taxes, most of us (the average Canadian taxpayer) still consider it a good day when we realize a tax break. The very prospect of tax relief in any sort seems to warm our hearts!

Several provisions of the Federal Budget 2006 have the propensity to evoke such a feeling. One of these provisions in particular provides significant opportunity for those Canadians who donate to charities and foundations: the elimination of capital gains for gifts of publicly listed securities to registered charitable organizations or public foundations.

The Christian Reformed Church (CRC) and its ministries rely on the ongoing generosity and faithful gifts of its supporters. While gifts of securities have not traditionally been a major component of the funds received by the CRC, this new tax provision provides an opportunity for donors who are in such a position to enhance their giving or receive additional tax relief for doing so.

The CRC is a founding partner of Christian Stewardship Services (CSS). While the CRC is capable of receiving gifts of securities directly, CSS continues to be the preferred vehicle for facilitating planned giving and estate planning, including the gifts of securities. The CRC relies on the expertise of CSS staff to provide professional advice within the context of a donor’s broader estate and planned giving intentions, all the while recognizing that our world, including our financial stewardship, belongs to God. CSS is equipped with the necessary resources (ie brokerage services) and is well positioned to process gifts to multiple beneficiaries.

If you are presently holding appreciated securities, I encourage you to consider making a gift and realizing the positive impacts under the terms of this new tax provision.

Terry Veldboom, Controller Christian Reformed Church