If you transfer stocks to us through our broker, CCCC, you don’t have to report or pay tax on the capital gains and because we are a registered charity, we have no tax liability for the capital gains on stocks donated to us. If you give stocks to a family member or to a non-profit that doesn’t qualify for the charitable tax donation, they still must report the capital gains as if they sold the stock for fair market value. As a result, giving to the Valley Care Pregnancy Centre offers benefits that giving stocks to friends, family, or other types of organizations does not.
Provides More Money to the Centre
When you transfer stocks to us through our broker, it generates more money given to our mission. For example, if you were to sell stocks for $5,000 that you bought for $2,000, you would need to report $1,500 as a capital gain (CRA requires you to report 50% of capital gains) and you would pay $500 federal income tax on that amount based on a tax rate of 33 percent. Once you subtract the tax bill of $500, you would only have $4,500 to give to the centre.
Double Your Gift Because You Get Half Back!
The CRA offers a federal tax credit of 15 percent on the first $200 donated and a 29 percent credit on donations over that amount. In addition to that, Nova Scotia offers a provincial tax credit of 8.79 percent on the first $200 donated and a 21 percent credit on donations over that. For example, for those who are not giving for the purpose of expecting money back, if you give $1,000, you will receive $407.50 back as a tax credit. But if you truly wanted to give the $1,000 without being paid a tax credit, you can give $2,000 and receive a $947.58 tax credit.
Spending of funds is confined to board approved programs and projects. Each restricted contribution designated towards a board approved program or project will be used as designated, with the understanding that when the need for such a program or project has been met or cannot be completed for any reason determined by the board, the remaining restricted contributions designated for such programs or projects will be used where needed most.