Gifts of Securities

Gifts of Securities

Your donation to the Grace Hospital Foundation directly contributes to staff and patient care enhancements that go beyond government funding, ensuring every person receives the highest quality care possible.

By donating listed securities directly, you eliminate the capital gains tax and receive a tax receipt for the full fair market value of the securities. Listed securities include exchange-traded stocks and bonds, mutual funds, segregated funds, and similar assets.

Typically, when you sell a stock, bond, or mutual fund that has appreciated in value, you are taxed on 50% of the capital gain. However, by donating the securities to a charity, you avoid this tax entirely. The following example highlights the financial advantage of gifting securities versus selling them and donating the proceeds (based on a 45% tax rate):

Scenario Sells Shares & Gift Cash Gift Shares Directly
Total Value of Securities (A) $10,000 $10,000
Original Purchase Price (B) $2,000 $2,000
Capital Gains (A-B=C) $8,000 $8,000
Tax on Gains (45% x 50% x C) (D) $1,800 $0
Donation Amount (E) $10,000 $10,000
Donation Tax Credit (E x 46.4%*) (F) $4,640 $4,640
Net Tax Savings (F-D) $2,840 $4,640

*46.4% represents the combined federal and provincial charitable tax credit rate in Manitoba for donations exceeding $200

If you’re considering a gift of securities, consult a qualified financial advisor to develop a strategy that aligns with your goals.

To make a gift of securities, please complete the attached form and forward it to your broker or financial institution to initiate the transfer. Please advise the Grace Hospital Foundation of your donation and provide us with a copy of your completed transfer form.

We are here to help with your any questions you may have about Gifts of Securities. The Grace Hospital Foundation would not presume to offer legal or financial advice. For more information contact Leah at 204-837-0447, or email ljohnston2@ggh.mb.ca