Donating securities
Charitable Impact gladly accepts gifts of stocks, bonds, mutual funds, and other securities. The tax benefits of donating securities directly are far greater than selling them and donating the proceeds. Charitable Impact also accepts privately traded securities.
Publicly traded securities
There are two options available to donate publicly traded securities. You can either:
1. Transfer the securities in kind and hold them in a Charitable Investment Account for further growth, or
2. Transfer the securities in kind and sell them as a Pass-Through donation for immediate grants.
Note:
How to donate securities with a Charitable Investment Account:
- Instruct your advisor to contact Charitable Impact: Kathleen Brouse, Account Manager of Charitable Investment Programs
kathleen.brouse@charitableimpact.com, 778-331-0571 - We send your advisor an Investment Policy Statement and Fee Schedule.
- We send you a Donor Application for you to complete and return to us.
- We open a Charitable Investment Account with your advisor, and you sign a transfer form to move your assets into it.
- You sign up for a personal Impact Account if you don’t have one already.
- You will receive a tax receipt for the fair market value of the securities once the transfer is complete.
- You will let us know when you want to send grants to charity. We will sell some or all of the assets and make the funds available in your Impact Account.
How to donate securities for immediate sale and giving:
- Fill out a Letter of Direction that your broker provides you (or download this one).
- Send a copy to your broker who will initiate the transfer of securities.
- Send a copy to Charitable Impact: Kathleen Brouse, Account Manager of Charitable Investment Programs
kathleen.brouse@charitableimpact.com, 778-331-0571 - Send a copy to Charitable Impact’s broker: Julia Cheng, CG Wealth Management
jcheng@cgf.com, 604-643-7505
- Sign up for a personal Impact Account if you don’t have one already.
- When the securities are received, they will be sold as soon as possible. The proceeds resulting from the sale, net of commission, will then be deposited into your personal Impact Account.
Note:
The fee charged by CG Wealth Management is calculated based on the trade value:
- $0 - $2,999: $130
- $3,000 - $4,999: $150
- $5,000 and above: $180 or (1% + $30) whichever is higher
Ex. 100 shares of ABC Inc. are donated and subsequently sold at a price of $200/share:
- Trade value: $20,000
- CG Wealth Management Fee: $20,000 x 1% = $200 + $30 = $230
- Net amount deposited to Impact Account: $19,770
Eligibility requirements
Investments are eligible if they are:
- Capital property in the hands of the donor
- Shares, bonds, and debentures that are listed on a prescribed stock exchange
- Rights and debt obligations (typically bonds or debentures) that are listed on a prescribed stock exchange
- Shares of a Canadian public mutual fund corporation and units of a mutual fund trust
- Interests in a segregated fund trust
- A bond
- Debenture
- Note or mortgage of the Canadian federal or provincial governments
Example of tax savings
| Sell shares and donate the cash (without Charitable Impact) |
Donate shares through Charitable Impact |
|
| Current value of shares |
$5,000 |
$5,000 |
| Original purchase price |
$1,000 |
$1,000 |
| Capital gain |
$4,000 |
$4,000 |
| Taxable portion of gain @ 50% |
$2,000 |
|
| Tax @ 46.4% |
$928 |
$0 |
| Amount available for charity |
$4,072 |
$5,000 |
| Net tax savings |
$1,392 |
$2,320 |
| *Top tax rate |
Eligibility requirements
Charitable Impact is able to facilitate the donation of privately traded securities as well, including:
- Private company shares
- Life insurance
- Real estate
- Cryptocurrency
- Art
To learn more, please contact our team at strategies@charitableimpact.com.
Note:
Prescribed stock exchanges generally include the Toronto Stock Exchange, TSX Venture Exchange, Montreal Exchange and most major foreign stock exchanges.