Baycrest

To reach a Legacy Giving team member, please call 416-785-2500 Becki Willoughby ext. 3895, Joanne Gittens ext. 2023, Melissa Sobel ext. 6288 Baycrest Foundation | 3560 Bathurst Street | Toronto | Ontario | M6A 2E1 Charitable Registration Number 11921 5242 RR0001 Professional Advisory Committee Co-Chairs: Elisabeth Colson | Joshua Wise Committee: Brian Belmont | Arieh Bloom Ashley Doidge | Talia Feder | Irving Feldman Zak Goldman | Leon Kieselstein | Marc Levstein Israel Mida | Allan Rakowsky | Jack Rotsztain Alexandra (Ali) Spinner | Alex Swabuk | Elisa Swern Errol Tenenbaum | Marissa Verskin | Kim Whaley The Capital Gains Exemption on In-Kind Charitable Donations of Stocks, Mutual Funds and Bonds Making a cash donation to your favourite charity may be the most convenient way, but may not be the most tax efficient. In-kind donations of property such as publicly traded shares, mutual funds or bonds, will have an inclusion rate of zero for capital gains purposes. Simply put, you will receive a charitable tax receipt for the full market value of your investment and will not have to pay any taxes on your gains. Therefore, in addition to avoiding capital gains tax, your in-kind donation will also benefit from generous provincial and federal tax credits. The first $200 of annual donations produces a credit of 26%, (assuming top marginal tax rates) and all donations above that can equate to a 53% tax credit. Tax credits can be claimed for donations of up to 75% of net income. For estate planning purposes, in-kind charitable donations bequeathed in your will can reduce the amount of tax payable for the year of death and the year before death up to 100% of net income. To qualify for this special tax incentive, you must donate the qualifying shares, units, or bonds directly to a recognized Canadian charity that has facilities and a service provider in place to manage the donation in-kind; and can include public or private foundations. The charity will then issue a tax receipt for the fair market value of the securities. If you first sell the securities and then make a cash donation using the proceeds from the sale, you will qualify for the tax credit but you will not qualify for the capital gains exemption. Speak with your Wealth Advisor before making a donation to ensure your donation of the securities aligns with your investment objectives, asset allocation, and overall wealth plan. It is advisable to consult a tax professional to determine the most tax efficient means of donation. This is Wise Investing. Joshua M. Wise is the founder of The Wise Investment Group of ScotiaMcLeod. He is a Certified Financial Planner CFP, Senior Wealth Advisory, and Director, Wealth Management Joshua Wise continued from page 1 "It's not just about clinical care today," he says. "It's about shepherding people like me and my family, as valued donors who will make a difference for care in the future; care that my peers and I will also need; and care that our kids will need one day, too." Having been inspired to give early on by his parents' example of legacy giving, Shane believes it is important for parents of adult children to start having important discussions about how they may want to plan their own legacy gifts. Shane says he hopes his example inspires others in his age group to set up legacy gifts through the Baycrest Foundation. "Leaving a legacy… gives me the credibility to have a voice I can use to speak to my demographic about why they should do the same with Baycrest legacy giving." Shane Grosman is Co-Chair of the Baycrest@Home Founding Partners group, which is supporting a new package of Baycrest-curated products and care services that will enable physically and cognitively frail older adults to age at home more easily, and also lend support to family members who need assistance with caregiving. Why Make a Gift? "The services Baycrest offered my mom in her last few years had a great impact on her quality of life. To give back, I make an annual donation using stock certificates. It's wonderful to contribute to Baycrest and receive a higher tax savings than with a cash donation." "I feel so lucky to be able to give to Baycrest through my endowment fund in honour of my parents and grandparents. My endowment fund helps to create a lasting impact on a cause that is close to my heart. My giving is not only about my family's legacy, it is also about contributing to an organization that literally changes the lives of cherished older adults in our community in meaningful and powerful ways." Martin Steiner Charles & Liz Kirk

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