Tax Smart Giving

Gifts of Securities

When an individual sells an appreciated stock or mutual fund they are required to pay tax on 50 per cent of the capital gain. However, thanks to the Federal Budget of May 2006, if they donate the appreciated securities to charity, they pay no capital gains tax.  The Government of Canada has structured excellent tax incentives that make donating to your charity of choice not just a thoughtful and generous decision but also a very smart one.

Donating stocks or mutual funds is the most tax-effective way to make a gift during your lifetime or as part of your legacy gift. Benefits of giving a gift of securities to the Victoria Conservatory of Music include:

  • A charitable tax receipt will be issued for the fair market of the securities which will help you reduce your tax on other income;
  • No Capital Gains Tax when you donate publicly traded securities to a public charity;
  • A not-needed asset is removed from your portfolio and converted to a donation to benefit a charity of choice;
  • When you consider making a gift of securities instead of cash, you may be able to make a larger gift than you thought possible. Your support through a gift of shares would have a wonderful impact on the many programs we deliver at the VCM.

Transferring your appreciated securities is easy to do:

Just contact the VCM Development office or click to download our Securities donation form.

Once you have completed the form, give it to your broker to initiate the transfer of shares to the VCM. It’s always a good idea to start the process early if you are planning a gift before the end of the year. If you need assistance or have any questions about this process contact:

Camille Cuthill
250-386-5311
cuthill@vcm.bc.ca

Some transfers can take a few weeks to complete and if you’d like a tax receipt for this calendar year the VCM needs to receive the transferred shares by December 31st.

The information provided here is not intended as legal or financial advice. We encourage you to always consult your financial advisor or other qualified professional

Life Insurance

Life insurance is an asset you may not think of donating to a charity until you hear how powerful and easy it can be.  There are many ways to make a gift using life insurance.  Give ownership of a new or an existing policy to the Victoria Conservatory of Music or simply name the Conservatory as the beneficiary.  Each option has different tax advantages and may make sense at different stages of your life.  Speak with an insurance broker or your financial advisor to choose the option that serves you and VCM best.

RRSP’s and RRIFs

You can designate the Victoria Conservatory of Music as a beneficiary of your Registered Retirement Savings Plan (RRSP) or Registered Retirement Income Fund (RRIF).  The compelling reason to consider this is that these assets are highly taxed after the later of your or your spouse’s death.  By donating this asset to VCM you offset the tax that would otherwise be payable on these assets by your estate.  PLUS…legacy gifts of a RRSP or RRIF are not included in the value of your estate, so you avoid fees on them.

Charitable Remainder Trusts

A Charitable Remainder Trust is a life income gift that enables you to give today (with immediate tax savings) while retaining use of the asset (investments, real estate, work of art, etc.)  After a prescribed period of time or upon your death, the asset is transferred to Victoria Conservatory of Music.  The impact of this type of planned gift is that you can receive income or use of the property during your life but have provided the Conservatory with an irrevocable legacy gift.

The benefits:

  • You receive a lifetime income from the assets you donate;
  • You receive immediate tax benefits to off-set your current income;
  • Gifts of appreciated property can be structured so there are no capital gains tax;
  • A CRT is not included in the value of your estate, so you avoid probate fees ;
  • You will be supporting generations of young musicians.

NOTE: This type of gift is irrevocable (you cannot change the terms of the gift or trust)

We Can Help:

Establishing legacy gifts can be an intimidating process.  We can help you and your advisor ensure your gift to the Victoria Conservatory of Music suits your circumstances.  Please contact:

Camille Cuthill
250-386-5311
cuthill@vcm.bc.ca

The information provided here is not intended as legal or financial advice.  We encourage you to always consult your financial advisor or other qualified professional