Managing a capital campaign gift
St. John’s School is a charitable organization and will provide you with a tax receipt for the amount of your gift. In general, individuals receive a tax credit of 40% of the amount donated in excess of $200.
For example, a $50,000 donation will give an individual $20,000 of tax savings, resulting in an after tax cost of only $30,000.
Many families will structure their gifts over two or three years. The after tax cost of $30,000 over three years at $10,000/year can be given through installments. $10,000 given in quarterly installments throughout the year is the equivalent of $2,500 every three months.
Structuring your gift is flexible and up to you.
For example, a $50,000 donation will give an individual $20,000 of tax savings, resulting in an after tax cost of only $30,000.
Many families will structure their gifts over two or three years. The after tax cost of $30,000 over three years at $10,000/year can be given through installments. $10,000 given in quarterly installments throughout the year is the equivalent of $2,500 every three months.
Structuring your gift is flexible and up to you.
List of 4 items.
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Cash
Cheques are payable to:
St. John’s School
2215 West 10 Avenue
Vancouver, BC V6K 2J1 -
Pledges
Rather than making an outright cash gift, you may prefer to spread the payments over a period of time. A pledge may allow you to contribute more significantly to the campaign than might otherwise be possible, while extending tax advantages over two or three years. -
Stock Transfers
As you consider your capital gift, you may want to explore the benefits of giving securities. When you donate publicly traded securities (stocks, bonds, options or mutual funds) directly to a not-for-profit, you pay no tax on the increase in value, instead of the usual 50% on the capital gain if you sold them. Plus, you receive a tax receipt for the full market value of the securities.
Here’s how it works –
Assume Mr. Jones wants to make a substantial donation to the school. He owns publicly traded shares in ABC Inc., which he originally purchased for $10,000 and are now worth $50,000. He is in a 48% income tax bracket, and he has made other charitable donations this year, exceeding $200. The donation credit (“C” in the example below) is approximately 43% and is made up of the 29% federal credit plus the provincial tax savings.
By donating the shares directly, as in Scenario #2, Mr. Jones ends up with a tax credit of $21,500 to apply against his total income tax payable. On the other hand, by selling the shares first, and then donating the proceeds, he ends up with only a $11,900 net tax benefit.Scenario 1
Mr. Jones sells the shares and donates $50,000 cash.Scenario 2
Mr. Jones donates the shares directly to St. John’s School.As you can see, it is significantly more beneficial to make a direct donation of shares to the School than the cash equivalent. (A) Donation value $50,000 $50,000 (B) Donation receipt $50,000 $50,000 (C) Donation credit (43% of B) $21,500 $21,500 (D) Gains on shares sold $40,000 ($50,000 - $10,000) - (E) Taxable gain $20,000 (50% of D) - (F) Tax on gain (48% of E) $9,600 - (G) Net tax benefit (C-F) $11,900 $21,500 (H) Net donation cost $38,100 $28,500
If you would like more information, the Advancement Office will be pleased to answer any of your questions regarding the donation of securities. -
Wire Transfer
Account Name:SJS St. John’s School Society
2215 West 10th Avenue
Vancouver, BC
V6K 2J1
Banking Information:
TD Canada Trust
Toronto Dominion Tower Branch
700 West Georgia Street
Vancouver, BC
V7Y 1A2 Canada
Canadian Account Number: 5330345
US Account Number: 7332407
Transit Number: 94000-004
Swift Code: TDOMCATTTOR
Please indicate Capital Donation on the transfer. Contact the Advancement Office for more information.
