Stocks and Securities

The Canadian income tax system encourages the residents of our great nation to make gifts to charitable organizations through the granting of tax credits.  Thanks to the recent tax changes made by the Federal Government, it's become a more cost effective gift than ever before to donate gifts of securities and stock to The Lung Association.  Donating stock securities to The New Brunswick Lung Association benefits you and your family today, while serving your community for a lifetime.

On May 2, 2006 the Federal Budget exempted charitable donations of publicly listed securities from capital gains tax.  This means that if you transferred gifts of marketable securities such as stocks, bonds, or mutual funds directly to The New Brunswick Lung Association, you would not pay tax on the capital gains.  Compared to the usual tax on 50 per cent of the capital gains when a security is sold or transferred, the savings are very clear and the benefits to our charity are exciting!

Suppose you have securities that you previously purchased for $5,000 that now have a fair market value of $10,000.  If you sell the securities, the cash value after capital gains tax and selling commission would be $8,700.  If, instead, you transfer $10,000 in securities directly to The New Brunswick Lung Association, the gift would generate a tax credit of $4,400 to reduce tax on other earnings.  Neither you nor The Lung Association would have to pay tax on the capital gains.  Compared to selling the securities and receiving $8,700, the net cost to you of donating the securities is $8,700 less the $4,400 tax credit which equals $4300 to make a gift of $10,000 to The Lung Association.

All securities donated to The Lung Association are sold upon receipt, with the net proceeds directed to the area of greatest need or to the fund you designate.  The amount of your charitable gift receipt is determined by the closing price on the day The Lung Association receives the securities into our account.  The Lung Association may only consider a gift of securities of $2,000 or more.

Whatever form of planned giving is most appropriate to your own circumstances, each gift assists the New Brunswick Lung Association's long-range financial planning. Your planned gift will guarantee that we will always have the resources to speak out for the silenced and the defenceless.

This and other gifting strategies require appropriate planning.  We strongly encourage our donors, prospects and supporters to seek the advice of qualified professionals prior to making any planned gift to ensure the best possible outcome for you and our Association.

Page Last Updated: 30/01/2019