Gifts of Securities

A donation of securities is like giving funds, although transferring securities, like publicly traded stocks, mutual funds or bonds, can be more advantageous to you while providing valuable support for CIMF.  You can safely donate your stocks and securities, including flow-through stock, by transferring them electronically from your brokerage account to CIMF’s brokerage account.  You will receive a receipt for income tax purposes for the full appreciated value of your securities as of the closing trading price on the day of the transfer.  You will also be exempt from any capital gains tax on your securities which makes this a very beneficial donation, as it provides you with considerable savings on your taxable income. For example, if you were to sell and donate cash versus transferring the same securities valued at $20,000:

Shares

Donate

Sell and Donate

Value

20,000

20,000

Original cost

4,000

4,000

Capital gain

Nil

16,000

Taxable capital gain

Nil

8,000

Taxes payable@50%

Nil

4,000

Charitable donation after taxes

20,000

16,000

Receipt for Income Taxes Received:

20,000

16,000

By donating the shares, you receive a receipt for income tax purposes for the full amount of the shares with no fees or commissions deducted.  If, on the other hand, you sell the shares first, your receipt for income tax purposes will be for less and you will have to pay taxes as well as fees or commissions.  Your financial planner can best advise you on how to maximize your tax benefits when planning your gift.

Please click here to download the Gifts of Securities Form.  If you have securities on hand to donate directly (not via a broker), but do not have access to a Scotiabank in your area, please contact Deborah Smith-Sauvé, Manager, CIMF, at the address noted below and she will arrange the transfer of your gift for you.

You can also make gifts of annuities, life insurance and/or real estate.  As always, each gift will receive a receipt for income tax purposes based on the value at closing on the day of transfer to CIMF. 

More about gifts of securities to CIMF

Please contact:
Deborah Smith-Sauvé
Manager, CIMF
1250 - 3500 de Maisonneuve Blvd. West
Westmount (Québec) H3Z 3C1
dsauve@CIM.ORG
(514) 939-2710, ext. 1334