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 for immediate grants.

Note:

Learn about the processing fees related to donating securities.

How to donate securities with a Charitable Investment Account:

  1. Instruct your advisor to contact Charitable Impact: 
    Kathleen Brouse
    , Account Manager of Charitable Investment Programs
    kathleen.brouse@charitableimpact.com
    778-331-0581
  2. We send your advisor an Investment Policy Statement and Fee Schedule.
  3. We send you a Donor Application for you to sign and return to us.
  4. We open a Charitable Investment Account with your advisor, and you sign a transfer form to move your assets into it.
  5. You sign up for a personal Impact Account if you don’t have one already. 
  6. You will receive a tax receipt for the fair market value of the securities once the transfer is complete.
  7. Let us know when you want to send grants to charity. We'll 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:

  1. Fill out a Letter of Direction that your broker provides you (or download this one). 
  2. Send a copy to your broker who will initiate the transfer of securities.
  3. Send a copy to us: strategies@charitableimpact.com
  4. Send a copy to Charitable Impact’s broker:
    Julia Cheng, Canaccord Genuity Wealth Management
    jcheng@cgf.com
    604-643-7505
  5. Sign up for a personal Impact Account if you don’t have one already. 
  6. 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 Canaccord Genuity is 1% of the trade value, subject to the following minimums:

  • $0 - $2,999: $130  
  • $3,000 - $4,999: $150 
  • $5,000 and above: $180

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 governmentsPrivately traded securities

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.

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