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Bequests and Planned Gifts

What Is a Planned Gift?

A planned gift is a type of charitable donation that requires planning on the part of the donor. It refers to those donations having legal, tax and investment implications requiring professional advice, usually from a lawyer, accountant, and/or financial planning professional. Some planned gifts are paid during the donor’s lifetime while others are not paid until after the death of the donor.

One of the most common planned gifts is a bequest paid from the estate of a deceased donor. Other planned gifts include donations of assets such as stocks, bonds, mutual funds, and other securities, as well as life insurance. Your lawyer, accountant, or financial planning professional can help you understand the specific implications of donating any of these kinds of assets.

Make a Bequest to CMHA Ontario

Everyone should have a will and CMHA Ontario recommends that you consult a lawyer to draft one. Please consider including a bequest to CMHA, Ontario in your will. We can provide you and your lawyer with sample language for writing a bequest to CMHA, Ontario into your will and we can work with you to determine how your bequest would be used.

For bequest purposes, our legal name is “Canadian Mental Health Association, Ontario Division” and our charitable registration number is 10686 3665 RR0001.

Eligible Securities

Did you know that effective May 2, 2006, the capital gains tax on donations of eligible securities, such as listed shares, to qualified registered charities was eliminated?

Therefore, when you donate eligible securities directly to the Canadian Mental Health Association, Ontario Division, you receive a donation receipt for the full fair market value of your donation, entitling you to a generous tax credit and you pay no tax on any capital gain.

To illustrate, from the table below you will note that by donating eligible securities as opposed to selling them and donating the cash, the donor saves the capital gains tax totaling $2,025. Further, the after tax cost to the donor of the $10,000 donation will be $5,500.

Selling shares and donating cash
Donating shares on or after May 2, 2006
1. Value of donation
$10,000
$10,000
2. Original cost
$1,000
$1,000
3. Capital gain
(1)-(2)
$9,000
$9,000
4. Taxable capital gain (3 x 50%)
$4,500
$0
5. Tax on capital gain (4 x 45%)
$2,025
$0
6. Donation tax credit (1 x 45%)
$4,500
$4,500
7. Tax savings
(6)-(5)
$2,475
$4,500

Assumes marginal tax rate and donation tax credit of 45%

Should you wish to make a donation of eligible securities to the Canadian Mental Health Association, Ontario Division, and benefit from the tax change, please consult with your financial advisor or stock broker.

For our brokerage account information, please contact:

Wally Sadowski
RBC Dominion Securities Inc.
2 Bloor Street East, Suite 2300
Toronto ON M4W 1A8
Telephone: 416-974-2979


For more information on bequests and other planned gifts, please contact David Alge, Senior Director, Finance and Administration, CMHA Ontario, at 416-977-5580 ext. 4156 or at dalge@ontario.cmha.ca.


For bequest purposes, our legal name is Canadian Mental Health Association, Ontario Division and our Canada Revenue Agency charitable registration number is 10686 3665 RR0001.