Planned Giving
A Gift of Property in Your Lifetime
You can make a gift to the Toronto Symphony Orchestra by
transferring shares of a public Corporation or specific properties
during your lifetime. Such a gift is known as a "gift-in-kind".
Gifts of Securities
Now More Attractive Than Ever Before
Making gifts of publicly traded securities has always had a
particular appeal to many donors--but now they are even more
attractive. Effective May 2, 2006, you will benefit from the federal
government’s elimination of capital gains tax on donations of
publicly-traded securities.
Benefits
- Ease of Transaction
Once you have made the decision to donate securities, simply contact Denny Young, Senior Director of Development at 416.593.7769 ext. 246 or by e-mail at dyoung@tso.ca for a Transfer of Shares Certificate.
This document authorizes your broker to complete the transfer of
securities to the Toronto Symphony Orchestra. You will receive a
receipt for the fair market value, which is the closing price of the
securities on the date the gift is received in the TSO’s account.
- Preserve Your Cash
By making a gift of securities, you will be able to generously support the TSO, without affecting your cash assets.
- Improved Tax Advantage
With the elimination of capital gains tax on gifts of
publicly traded securities, there are greater advantages to you. You
will benefit from the significant tax savings by not having to pay
capital gains tax on your donated appreciated securities. You will
receive a donation receipt for the fair market value of the securities.
Fair market value is determined using the closing price on the day the
shares are received in the TSO’s account.
This following chart illustrates the advantage of the new tax law:
|
|
Cash Donation (sell stock & donate proceeds)
|
Donation of Securities (old regime)
|
Donation of Securities (as recently announce in federal budget)
|
Straight cash donation
|
|
Fair Market Value of Donation
|
$100,000
|
$100,000
|
$100,000
|
$100,000
|
|
Cost Base
|
$50,000
|
$50,000
|
$50,000
|
N/A
|
|
Capital Gain (A)
|
$50,000
|
$50,000
|
$50,000
|
N/A
|
|
Taxable Capital Gain (B)
|
$25,000
(50% of A)
|
$12,500
(25% of A)
|
$0
|
N/A
|
|
Taxes Payable on Gain
(Top Marginal Tax Rate 46% -- of B) equals C
|
$11,500
|
$5,750
|
$0
|
N/A
|
|
Tax Receipt
|
$100,000
|
$100,000
|
$100,000
|
$100,000
|
|
Tax Credit*
|
$46,000
($100,000 x 46%)
|
$46,000
|
$46,000
|
$46,000
|
|
Less Tax Paid (C)
|
$11,500
|
$5,750
|
$0
|
$0
|
|
Net Tax Savings
|
$34,500
|
$40,250
|
$46,000
|
$46,000
|
*Note: Individuals may only claim the credit for up to 75% of net income in any given year. Assume a 46% rate.
Reduction of inclusion rate from 25% to nil only applies to
gifts to charitable organizations and public foundations NOT to private
foundations.
Gifts of Pensions or RRSP’s
Similar tax savings can also be earned by naming the Toronto Symphony Orchestra as the beneficiary of your pension plan or RRSP.
Gifts of Specific Properties
You may wish to support the Toronto Symphony Orchestra with a gift of real estate or other property.
You will receive a charitable tax receipt for the appraised value of
the donated property. Gifts of cultural property may enjoy increased
tax advantage. Donors are encourage to inform the Toronto Symphony
Orchestra of their intention to gift such property to the Orchestra to
ensure that the gift fulfils a need identified by the Orchestra and
that the gift can be accepted by the Orchestra.
Please consider leaving a charitable bequest to the Toronto
Symphony Orchestra in your Will or estate plan. For further information
on bequests or other planned giving opportunities, please contact Denny Young, Senior Director of Development at 416.593.7769 ext. 246 or by e-mail at dyoung@tso.ca.
This information is provided for general information purposes only and
does not constitute legal or other professional advice. Readers are
advised to seek specific legal advice from their own legal counsel
before proceeding with a planned gift.
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