Double the Impact, Zero Capital Gains: How Giving Securities Supports The Grove Theatre
When you think about supporting The Grove Theatre, ticket purchases, annual donations, or sponsoring a chair through our Take Your Seat campaign likely come to mind. But there is another extraordinarily powerful, and tax-smart, way to fuel live performance and economic growth in Fenelon Falls: gifting appreciated securities.
Whether you hold stocks, bonds, or mutual funds, donating non-registered securities directly to The Grove allows you to make a transformational investment in our stage, youth camps, and community, while maximizing your personal tax savings.
Here is a breakdown of how giving gifts of securities works, why it is one of Canada’s smartest charitable strategies, and how easy it is to do.
The Tax Advantage: Why Cash Isn’t Always King
When you sell appreciated stock or mutual funds in a non-registered account to donate cash, you trigger a capital gains tax. Under Canadian tax law, 50% of the gain realized from selling an asset is added to your taxable income.
However, when you transfer appreciated publicly traded securities directly to a registered charity, Canadian tax regulations completely eliminate the capital gains tax.
The Double-Tax Benefit Explained
Zero Capital Gains Tax: You pay $0 in capital gains tax on the growth of the donated shares.
Full-Value Charitable Tax Receipt: You receive a charitable tax receipt for the full fair market value of the securities on the date they are transferred to our account.
A Quick Comparison
Imagine you purchased shares years ago for $2,000, and today they are worth $10,000.
Option A: Selling the shares, paying tax, and donating cash. Selling the shares creates an $8,000 capital gain. You will pay tax on 50% of that gain ($4,000 added to your income). Only the remaining net proceeds go to the theatre.
Option B: Donating the shares directly to The Grove. The entire $10,000 value goes toward supporting our programming. You pay $0 in capital gains tax, and you receive a charitable tax receipt for the full $10,000 to offset your overall income tax.
By eliminating the tax burden, your dollar stretches significantly further, giving both you and The Grove a far greater return on investment.
How to Make a Gift of Securities to The Grove
We have made the donation process seamless, secure, and tailored to the size of your gift:
Gifts Under $10,000: Powered by CanadaHelps
For gifts up to $10,000, we partner with CanadaHelps, Canada’s leading platform for online charitable giving.
Simply complete the online CanadaHelps Securities Donation Form.
Your broker transfers the shares electronically to CanadaHelps, where they are liquidated.
CanadaHelps issues your official charitable tax receipt instantly and forwards the net proceeds directly to The Grove Theatre.
Gifts Over $10,000: Facilitated by the Kawartha Community Foundation
For major investments of $10,000 or more, such as sponsoring mainstage productions, supporting artists or educational programming, we work in close partnership with the Kawartha Community Foundation (KCF).
KCF provides personalized, white-glove service to manage major electronic share transfers directly with your financial advisor or wealth manager.
They ensure smooth processing, handle the liquidation, issue your tax receipt, and steward the funds directly to The Grove’s strategic growth priorities.
What Your Gift Fuels at The Grove
A gift of securities does far more than support a single night of entertainment. It directly powers:
Professional Canadian Talent: Bringing top-tier mainstage productions and marquee artists (like Jim Cuddy, Chantal Kreviazuk, and Steven Page) to our outdoor amphitheatre.
Youth Empowerment: Expanding our Grove Drama Camp, which gives local youth the chance to build confidence, teamwork, and creative skills.
Regional Economic Growth: Sustaining over $4.1 million in regional economic impact each year by driving tourism into local restaurants, shops, and lodging across the Kawartha Lakes.
Ready to Explore a Gift of Securities?
Before making any financial transfer, we always recommend consulting with your financial advisor, accountant, or wealth manager to confirm the strategy that best fits your broader tax and estate plan.
If you are interested in making a gift of securities to support The Grove Theatre, or would like to speak with our team about directing your gift toward a specific program, please contact us today.
Thank you for believing in what we are building together in Fenelon Falls. Your investment keeps our stage shining bright!
