If you own publicly traded securities that have increased in value and you decide to sell them, you will pay tax on 50% of the capital gain.  If you decide to donate them to a registered charity, there will be no tax payable on the capital gain.  

Making a gift of publicly traded securities, such as stocks, bonds or mutual funds, to the Victoria Foundation is easy to do. Qualifying appreciated securities include shares, bonds, warrants, options listed on a prescribed stock exchange, mutual fund shares/units and segregated fund units.

To take advantage of the tax savings benefit, you must transfer the securities “as is” - either through an electronic transfer from your brokerage account to the Foundation’s brokerage account or in the form of a share certificate in your name, delivered by you to the Foundation.  You will receive a donation receipt for the fair market value of the securities based on the closing price on the date the securities are received into the Foundation’s account.

If you own publicly traded securities that have dropped in value, there are still options for you to consider - check out our article from the Winter 2008 edition of Connections.  

We will work with you and your advisors to ensure the transfer is smooth and your receipt is delivered to you.   Simply follow the step by step directions on our Donation Form for Gifts of Securities and complete the Donation Form and send a copy to your broker and to the Victoria Foundation.  We will look after the rest.

If you have share certificates, please call us to arrange for delivery of the certificates.  Since a signed certificate is negotiable, please do not sign it until you have met with us and are ready to transfer your shares to the Victoria Foundation.  We will arrange for your signature to be guaranteed and for the receipt to be issued to you. 

Making a gift of securities is one of the most cost effective ways to make a gift to support your community.  It works at all levels of giving and whether you give securities now during your lifetime or in the future through your Will, the tax benefit is the same.