How donating appreciated marketable securities can increase the impact of your charitable giving.
At Passover, families gather around the Seder table to retell the story of the Exodus from Egypt. We reflect on our shared history and pass our traditions from one generation to the next.
But Passover is not only about remembering the past. It is also a moment to think about the future and about the values we choose to carry forward.
Around the Seder table, when we speak to our children, we are not simply retelling a story. We are sharing a vision of a community that supports one another, builds together, and ensures no one is left behind.
How donating appreciated marketable securities can increase the impact of your charitable giving.
At Passover, families gather around the Seder table to retell the story of the Exodus from Egypt. We reflect on our shared history and pass our traditions from one generation to the next.
But Passover is not only about remembering the past. It is also a moment to think about the future and about the values we choose to carry forward.
Around the Seder table, when we speak to our children, we are not simply retelling a story. We are sharing a vision of a community that supports one another, builds together, and ensures no one is left behind.
Giving Differently: An Often Overlooked Approach
Many of us make charitable donations in cash. It is simple, meaningful, and immediate.
There is another highly effective, yet often overlooked, way to support the causes we care about: donating investments that have appreciated in value, such as publicly traded stocks, bonds, or mutual funds.
Why does this matter?
In Canada, when you sell an investment that has increased in value, part of that gain is taxable.
However, if you donate that investment directly to a registered charity such as the Jewish Community Foundation of Montreal (JCF):
- You receive a tax receipt for the full market value of the investment.
- The accrued capital gain is not subject to tax.
- The entire value supports the causes you care about.
In other words, more of what you have built can directly benefit the causes most important to you.
This approach allows individuals and families to combine philanthropy with thoughtful financial planning.
A Simple Illustration
Imagine that several years ago you bought stocks that grew significantly in value.
If you sell the stocks and then donate the proceeds, part of the gain will be taxable. That is simply how the tax system works.
But if you donate the stocks, its full value can go toward supporting the causes you care about.
In practical terms, that can mean:
- More resources for a school you value
- More support for a social service organization
- Greater stability for a community institution
Your generosity goes further and your impact is amplified.
For Entrepreneurs and Business Leaders
Our community includes many entrepreneurs and business leaders who have built and created lasting value.
For them, philanthropy can also be integrated at the corporate level.
In certain situations, donating appreciated securities through a corporation can create additional efficiencies. For example, the non-taxable portion of the capital gain (in this case, 100%) may be added to the company’s capital dividend account, potentially allowing tax-free dividends to be paid to shareholders.
While the mechanisms may seem complex, the results can be highly efficient. Business owners interested in this approach should discuss these opportunities with their professional advisors.
The JCF: Supporting and Structuring Philanthropy
The Jewish Community Foundation of Montreal provides expertise and guidance to help donors give thoughtfully and effectively. Today, more than 3,000 philanthropists place their trust in us, including families, entrepreneurs, and multiple generations committed to meaningful giving.
Our role is to listen, understand your values, and help you explore the options that best reflect your goals, including:
- Family philanthropic funds
- Long-term giving strategies
- Intergenerational engagement
- Structured philanthropic planning
Through various philanthropic options, it is possible to:
- Maximize the impact of your donation
- Ensure support continues over time
- Involve your children and grandchildren in philanthropy
- Build a legacy that reflects your values
We help simplify what may seem complex and turn a philanthropic intention into lasting commitment.
Passover: A Moment to Reflect on Our Legacy
The story of Exodus reminds us that freedom carries responsibility.
We have the freedom to succeed, to invest, and to give. The question is: what will we choose to pass on?
Creating your own philanthropic fund, structuring your giving, or supporting community institutions in a sustainable way are meaningful ways to transform success into continuity.
Giving Today, Building Tomorrow
In an uncertain world, strong community institutions matter more than ever.
At Passover, we symbolically open the door to welcome hope. Perhaps this is also a moment to open a new chapter of thoughtful, structured, and lasting generosity.
If you would like to explore how to organize your giving or maximize the impact of your philanthropy, our Philanthropic Advisors would be pleased to speak with you in confidence.
Chag Pesach Sameach.
May this holiday bring freedom, light and peace.
Lindsay Lubov, CPA, MFA-P
Philanthropic Advisor