Changes announced in the 2006 Federal Budget make it much more attractive to donate gifts of stocks, bonds, mutual funds, bills, futures and other publicly-traded securities to the Trenton Memorial Hospital Foundation.
Effective immediately, the Federal Government has eliminated capital gains on all gifts of publicly-traded securities to public charities, including the TMH Foundation. Note that the donation must be an “in kind” transfer of the security itself, not the cash proceeds from the sale of the security. Such a transfer is easily made electronically from your investment account to the TMH Foundation brokerage account. The TMH Foundation will issue a tax receipt for the market value of the gift on the day we receive your security donation in the TMH Foundation brokerage account.
Also effective immediately, owners of employee stock options may gift public charities of the proceeds of an exercise without incurring capital gains. Again, the TMH Foundation will issue a tax receipt for the market value of the gift on the day we receive the gift.
Why donate securities?
The following example will illustrate the benefits of donating stock to the Trenton Memorial Hospital Foundation versus selling the stock and keeping the proceeds.