For many people, giving back to their community starts with a cheque, a credit card or a monthly donation. But there is another way to give – leveraging an asset you already have. A Gift of Securities lets you donate publicly traded stocks, mutual funds or other eligible securities directly to United Way of Calgary and Area. For Phil Welch, it’s become one of the simplest ways he gives.
“I realized how efficient it is,” Phil says. “Once I understood the tax benefits, the savings and the advantages of doing it, I became a big proponent of it and started doing it myself.”
For more than 30 years, United Way has helped donors turn investments into impact through Gifts of Securities. It’s a giving option with a long track record. But for people who have never tried it, the idea can sound more complicated than it really is. Phil was intrigued by it. “I was curious because I thought, how do I start?” As it turns out, most people may already have eligible investments in their portfolios — whether they were purchased through an investment advisor or received through an employer. If those investments have grown significantly over the years, selling them can also trigger tax on the capital gain. A Gift of Securities can work differently. When eligible securities are donated directly to United Way of Calgary and Area, the donor will receive a charitable tax receipt for the fair market value of the securities, while also eliminating the capital gains tax. For Phil, that was the moment it clicked.
“If you can donate these securities and the full value goes to United Way, and I wouldn’t have to pay the capital gains tax but in fact I got the same tax credit, I thought, this is fantastic.”
— Phil Welch
It’s simpler than it sounds
The idea of transferring investments to a charity can sound complicated, but as Phil can attest, it’s actually straightforward. “You specify the number of shares of the stock you want to be transferred to United Way.” United Way provides a simple form. The donor completes it and sends it to their investment advisor, who handles the transfer.“ I sign the form and the shares get transferred over to United Way, they’re sold right away and it’s done,” Phil says. Janet Drage, a financial planner and longtime United Way supporter, agrees.
“The reality is it couldn’t be easier.”
For people who already have charitable intentions, she sees an opportunity to be more strategic with their giving.
“People have charitable intent. They want to help our community and help Calgary. And did you know there’s a way for you to potentially donate more and not have the tax hit on it? It’s a win-win.”
Turning investments into impact here at home
For Phil and Janet, the tax benefits are only part of the story. Over his 30-year career, Phil was connected to United Way through a workplace campaign. “I started to realize the United Way campaign was not just a fun workplace campaign with bake sales,” he says. “When you look closer, United Way really does have an efficient, targeted approach to benefiting Calgarians. ”What stood out was United Way’s ability to see the bigger picture — and invest where the need is greatest. “I trust United Way to pick the areas on the spectrum of needs to make the most difference,” Phil says. “It’s something I can’t do myself and I don’t see the bigger picture in the way United Way does. ”Giving back to the city he calls home is important.“ I love the fact United Way is focused on Calgary because I love Calgary and I want to see our city thrive.” Janet’s connection to United Way is also personal. Her father was involved with United Way, and she followed in his footsteps. “For me, I have been so fortunate and I recognize that. I feel I have an obligation to give back.”
Your portfolio could be part of the solution
If you have publicly traded securities that have increased in value, a Gift of Securities may be worth exploring as part of your charitable giving. Instead of selling the investment first, you can transfer eligible securities directly to United Way. It’s another way to turn something you already have into support for the Calgary community. As Phil puts it:
“I like to make my giving go further and I feel like I am using my money in the best possible way to make the biggest possible impact.”
— Phil Welch
An initial Gift of Securities of $1,000 or more may be matched up to $2,500 while matching funds last, subject to eligibility. Visit calgaryunitedway.org/securities to learn how it works and get started.