Securities

Since 1997, federal incentives have made it very attractive to donate publicly listed securities that have appreciated in value. As part of the most recent Federal budget Canadians will no longer be taxed on the capital gain accrued on gifts of publicly traded securities when the securities are donated to a registered charity such as the Sens Foundation or our charity of choice Roger’s House.

Benefits to Donor

 

  Sell Stock and Give Cash of $100k Give Stock of $100K
Fair Market Value $100,000 $100,000
Cost Basis $20,000 $20,000
Capital Gain $80,000 $80,000
Taxable Gain 50% = $40,000 0%
Tax payable on Gain  $15,600 $0
@ 39% ($40,000 x 39%) $0
Donation Receipt $100, 000 $100, 000
Tax Credit x 40% ($100,000 x 40%) $40,000 $40,000
Tax Savings $40,000  
  -$15,000 $40,000
  =$24,400  

 

Options for making a Gift of Securities

Electronic transfer of securities from donor’s brokerage account to Sens Foundation’s or Roger’s House brokerage account. This is perhaps the easiest way to make a gift of securities. There is no need to transfer the actual certificates. You, the donor, simply instruct your broker to make an electronic transfer through a letter of authorization. You will receive a charitable donation receipt for the fair market value.

Donor endorses the securities certificates to the Sens Foundation or our charity of choice Roger’s House. The donor then delivers the endorsed certificates via hand delivery, registered mail or courier. The certificates and the share transfer agreement form must be mailed separately. The fair market value is determined on the date the certificates are received by the Foundation, and a charitable donation receipt issued.

Note: Ask your broker to waive brokerage fees in the name of charity.

The proper legal name for making a gift to us is Sens Foundation.

The proper legal name for making a gift to our charity of choice is Roger’s House.

For more information on the many ways to make a gift to the Sens Foundation, please contact us.