Tax Savings Information

Our government is now realizing that the turning of our nation’s economic wheel is fueled by both personal and corporate donations.  The evidence is in the more liberal changes in the tax act, specifically, regarding the donation of public company shares to qualifying foundations.

Prior to the budget of May 2, 2006 when a share was donated it triggered a capital gains tax that had to be paid by the donor which, in effect, reduced the net benefit of making the gift. Here’s a simple example:

Prior to latest Federal budget:
Gift	$100,000
Gain on shares:	$50,000
Gain subject to tax:	$25,000
Capital gains tax to be paid:	$5,750
Tax relief from donation:	$46,000
Net tax relief from donation of public shares:	$40,250

Today:
Gift	$100,000
Gain on shares:	$50,000
Gain subject to tax:	0
Capital gains tax to be paid:	0
Net tax relief from shares:	$46,000

As a result, donating securities to a charitable organization may produce a greater benefit than selling the shares first and then donating the cash.

Your contribution today will enable The St. Catharines General Hospital Foundation to purchase urgently needed patient equipment for your hospital. Any additional contributions made will produce a generous tax credit in the year of the gift.

For those without public shares who choose to redirect their tax dollars to The St. Catharines General Hospital Foundation, we can provide a detailed analysis specific to your situation... at no charge to you. Please call Sandra Wilkes at 905-323-FUND (3863)