How Your Gifts of Securities Can Help
Charitable giving is an integral part of successful financial and estate planning. Annually, ELFEC works with many donors to take advantage of the significant tax savings that are possible when making charitable donations. If you are thinking of donating and have unrealized capital gains in your non-registered investment portfolio, you should consider donating securities in kind instead of cash, as any capital gain attributable to the donated security would not be included in your taxable income. Effectively, there is no tax on capital gains resulting from an in-kind donation of qualified publicly traded securities (including mutual funds). This allows you to save the capital gains tax and claim the donation tax credit.
Just as there are advantages to donors, congregations that receive donations of securities benefit as well. A recent survey of congregations who have been a beneficiary of such a gift, helped our Foundation understand these benefits. One common theme was the value of a flat, small fee vs other organizations who process donation of securities but take a % of the proceeds as an admin fee. Only a small flat administration fee is charged for processing the donation by ELFEC and these fees cover such things as bank costs. ELFEC ensures fees are among the lowest in the sector and this means that the resulting gift is much larger for the congregation.
William from a congregation in Central Ontario shared his observation that in his experience “[a gift of securities] is usually larger than normal offerings and they arrive all at once”. This significantly eases the budgeting process and makes for better planning for the congregation.
Erin from Southwestern Ontario also praised ELFEC’s LPG programs and the ease with which gifts of securities can be made. Erin observed that “gifts transferred in-kind this way helps everyone! The donor receives a larger charitable receipt, and the congregation receives a larger gift. The government receives less tax income, but this turns out to be desirable because of the exponential value of the good works done by charities for the amounts they receive.”
Another congregational treasurer believes that “…some donors see shares as a rainy-day fund, and after holding shares for years or even decades they are convinced they have enough other assets to survive any rainy day” and so doing good work by making a gift to charity through ELFEC is a wonderful benefit that can be experienced almost immediately”.
Through ELFEC, you can easily donate your appreciated securities to support any charitable purpose including your own congregation or another ministry of the Church. For ELFEC, gifts of securities are received as part of our long-standing Lutheran Planned Giving (LPG) efforts, a service ELFEC is pleased to make available to individuals, congregations, and others. “The ELFEC team is skilled, efficient, experienced knowledgeable professionals who can assist donors” cited Erin. LPG goal is to simply to support charitable giving and philanthropy.
Interested in learning more about the tax advantages of gifting securities? Contact ELFEC today toll-free at 888.308.9461 or visit us online at www.ELFEC.ca.