Gifts of Securities
Securities include stocks, bonds and mutual fund units. The Ross Memorial Hospital Foundation gratefully accepts gifts of publicly traded securities. These may be held by the Foundation or sold and converted to cash. The donor of the securities is entitled to a donation receipt for fair market value. In the case of publicly traded securities, fair market value is calculated as the average between high and low sales of the security on the date of the gift.
For more information about gifts of listed securities, please contact the Foundation at 705-328-6146.
Which listed securities qualify?
Qualifying charitable donations of listed publicly-traded securities include publicly listed shares, bonds or mutual fund units, as well as listed publicly-traded securities acquired with employee stock options.
What are the benefits of this type of gift?
Gifts of listed securities are not subject to capital gains tax. Therefore, you will not pay any income tax on the capital gain through your gift. In contrast, if the securities are sold and the cash is then donated, 50% of the capital gain is taxable. How is the value of my donated securities calculated? The fair market value of your securities is based on the closing market price the day that they are received by the charity. Your tax receipt will show the value on the day it was received by the Foundation.
What You Need to Know
At the Ross Memorial Hospital Foundation, it is our preference that securities are donated through the use of an electronic transfer. This is often more convenient for our donors and is a clear process endorsed by the Canada Revenue Agency. The Ross Memorial Hospital Foundation strongly recommends that you consult with your financial advisor before initiating any type of donation. This will ensure that you receive professional advice that is tailored to your personal situation.
What is the process?
- Contact Erin Coons, Executive Director of Ross Memorial Hospital Foundation at 705-328-6113 to advise of your intent to donate your securities.
- Complete and sign a Gift of Securities Donation Form:
The name, number and type of securities you wish to donate (i.e. common or preferred); The approximate value of your securities; The date you wish to make your donation; The name and contact information of your financial advisor or broker; How you would like to designate your gift.
- Contact your financial advisor or broker. You will need to provide them with written authorization stating your intent to transfer securities from your account to the Foundation’s account.
- Your broker or financial institution may also require you to complete an authorization form that will initiate a book base transfer for the date you choose.