Chair’s Blog June 2018, Longtime GB Residents Make a Difference through Donation of Stocks

Tim and Marcia Sweet have the perfect Grand Bend story.

They met one summer when Tim was tending bar at the Oakwood Resort and Marcia was waiting tables. Shortly after they married, they bought a little cottage overlooking the Ausable River. Says Tim, “We could no more afford it than fly!” Many years later, they are permanent residents and have replaced the cottage with a comfortable home on the same location.

In the meantime, Tim built a successful business, first selling life insurance and later as an investment advisor. “I like the idea of building long-term relationships and helping people with their finances.”

Now retired, Tim is Treasurer of the Grand Bend Community Foundation, among other volunteer commitments. He and Marcia are generous supporters of the Foundation, making an annual gift of shares. “It just makes sense from a tax point of view,” says Tim. “With stocks you can donate a dollar and in most cases, it costs you less than 40 cents.”

Why? Because the federal government doesn’t charge capital gains tax on stocks donated to charities. So, when you give stocks that have increased in value, you pay no capital gains tax and get a charitable tax receipt for the full value of the stocks.

Sweet says it’s a very easy process. Just let the Foundation know you’re making the gift, and then ask your broker to transfer the stocks.

You can also direct some of the proceeds from your gift of stocks to other charities –you get one tax receipt, and the Foundation looks after sending the money on to the other charities of your choice.  Brokerage firms usually waive any transfer fees when the stocks are going to a charity.

“Most people have stocks or mutual funds” says Sweet. “Over the last nine years the stock market has been on a tear. Now if you want to use that money you have to pay capital gains – unless you use it to donate to a charity!”