-   Recent market volatility causing potential stock donors to sit on the
        sidelines
    -   Taking a long-term "investor approach" to donating public securities
        is best

    TORONTO, May 14 /CNW/ - The elimination of capital gains tax on donations
of publicly listed securities to registered Canadian charities has been a boon
for donors and charities. However, some donors may be holding back on account
of market volatility and significant price pull-backs in the first few months
of 2008.
    The Federal Government introduced the 100% capital gains elimination for
donated securities in the spring of 2006, and overall giving spiked 8.3% that
year compared with 2005. Much of this increase has been attributed to donated
securities. Thus a move by donors to put their giving on hold while they wait
for the price of a stock to recover could have serious impact on charitable
organizations reliant on philanthropy.
    According to TD Waterhouse's Chief Portfolio Strategist Bob Gorman: "The
sharp sell-off in global equity markets earlier this year reflects fallout
from the global credit crisis, which caused a deceleration in the growth rate
of the U.S. economy and, to a lesser extent, other major economies around the
globe. At the same time, many commodities - oil, gold, wheat, corn and
soybeans - have fluctuated wildly in price." Gorman believes market volatility
will gradually ebb as investors' expectations improve and they shift assets
back into equity markets.
    "If you're trying to wait out current volatile conditions in order to
maximize the value of your stock donation, I would say that your heart is in
the right place, but your strategy is wrong," says Jo-Anne Ryan, Vice
President, Philanthropic Advisory Services, TD Waterhouse Canada Inc. "Timing
the market is a feat that virtually all investment professionals and experts
agree is impossible to accomplish."
    Instead, Ryan recommends adopting a personal giving strategy as part of a
long-term plan that should include contingencies for market volatility. Rather
than trying to time the market, donors should take a 'dollar cost averaging'
approach where they spread donations over a period of time in an organized and
disciplined manner.
    "This means applying the same disciplined approach to giving as you would
to investing," continues Ryan. "Not only does this reduce the risks and
pitfalls of making poor market timing decisions, but it also addresses
charities' fundamental need for stable funding."
    "When organizations have stable funding, they can conduct long-term
planning and design programs with greater impact," says Waseem Syed, Vice
President of Community Investment, United Way of Greater Toronto. "Being able
to plan how resources are invested - and having the certainty that the funding
will be there - makes a big difference to a charity's effectiveness."

    In addition to dollar cost averaging, Ryan offers the following tips to
donors seeking to maximize the impact of their donated securities:

    -   If you are holding an investment because you believe it still has
        upside potential and, therefore, do not want to sell it, consider
        donating the security and then re-purchasing it. By doing so you
        avoid paying capital gains tax on profits to-date and get a tax
        credit for the donation. You will also have "stepped up" the adjusted
        cost base of your investment, reducing capital gains and associated
        tax when you sell the investment.

    -   If you own securities that have depreciated since purchase, consider
        triggering a capital loss by selling one or more 'underperformers'
        and donating the cash proceeds to charity. With this strategy, you
        get a tax credit for the donation and you also generate a capital
        loss. This, in turn, can be used to offset other capital gains in the
        current year or in the past three years, or may be carried forward
        indefinitely.

    -   If you are still feeling uneasy about donating stock in light of
        current market conditions, consider a cash donation instead. You will
        receive a charitable tax receipt resulting in a tax credit of
        approximately 46% (subject to certain limits), which may reduce your
        taxes.

    "You can donate both your winners and losers with substantial benefits,"
concludes Ryan. "The bottom line is that neither your investments nor your
charitable endeavours need to be held hostage by the market. By taking a
strategic approach to charitable giving, you'll maximize your tax savings and
the value of your donations over the long-term. You'll also contribute to the
stable, long-term funding that is vital to Canada's philanthropic community."

    About TD Bank Financial Group

    The Toronto-Dominion Bank and its subsidiaries are collectively known as
TD Bank Financial Group. TD Bank Financial Group is the seventh largest bank
in North America by branches and serves approximately 17 million customers in
four key businesses operating in a number of locations in key financial
centres around the globe: Canadian Personal and Commercial Banking, including
TD Canada Trust; Wealth Management, including TD Waterhouse and an investment
in TD Ameritrade; U.S. Personal and Commercial Banking through TD Commerce
Bank; and Wholesale Banking, including TD Securities. TD Bank Financial Group
also ranks among the world's leading on-line financial services firms, with
more than 5.5 million on-line customers. TD Bank Financial Group had
CDN$435 billion in assets as of January 31, 2008. The Toronto-Dominion Bank
trades on the Toronto and New York Stock Exchanges under the symbol "TD", as
well as on the Tokyo Stock Exchange.

For further information: Julie Bellissimo, (416) 848-1462,
jbellissimo@national.ca