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Gift of Stock

Gifts of Stock

A gift of publicly traded securities is both simple and tax-effective.  You and your broker (investment advisor) may transfer these types of gifts electronically into The Arthritis Society’s brokerage account by using our Share Transfer Form.

Please contact our Planned Giving Office at 1-844-979-7228 (Toll Free in Canada) to request our Share Transfer Form [PDF]. You receive greater tax benefit through donating a gift of securities "In-Kind" than you would if you sold the securities and donated the cash proceeds to charity (see example below).

“It’s more economical to give stock than to give cash, especially since you no longer have to pay capital gains tax.  Looking at the bottom line, it’s a more cash-effective way to donate.”
- Arthritis Society donor

Please Note: The donation is intended to be an “in-kind” transfer of the security itself, not the cash proceeds from the sale of the security to maximize your benefits.  Such a transfer is easily made electronically from your investment account to the Arthritis Society’s brokerage account. If you have paper share certificates, please contact the Arthritis Society’s Planned Giving Team listed here for further instructions.

Gifts eligible for this preferred tax treatment include any of the following securities:

Stocks, bonds, Mutual fund units, warrants, bills and futures that are listed on the stock exchanges prescribed by Canada Revenue Agency.​

Benefits of gifting securities:

  • Eliminates the capital gains tax owing on the shares
  • Official tax receipt issued for the fair market value of the gift, based on the closing price of the shares on the day the gift is received in The Arthritis Society brokerage account
  • Choose how your gift is used above $5,000; or for the area of greatest need

Transferring securities electronically?

Please contact our Planned Giving Office at 1-844-979-7228 (Toll Free in Canada) or 416-979-7228 ext. 3553, or ext. 3343 to request our Share Transfer Form.

An illustration – Gifting Publicly Traded Securities:

  Sell shares and donate cash Donate Securities “In-Kind” to the Arthritis Society
Fair Market Value of security $10,000 $10,000
Cost Basis $1,000 $1,000
Capital Gain $9,000 $9,000
Taxable capital gain (50%) $4,500 $0
Tax due on gain at 46% * $2,070 $0
Tax receipt for gift $10,000 $10,000
Value of tax credit at 46% * $4,600 $4,600
Net tax benefit to the donor $2,530 $4,600

Example uses Ontario federal and provincial combined tax rate. Varies by province.* The after tax cost to you is about 54 cents on the dollar. Example assumes a 46% tax rate. Actual cost will vary according to cost basis of stock/security.

This information is current to September 30, 2017. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. Readers are cautioned to consult their own professional advisors to determine the applicability of information and opinions in any particular circumstances.

Contact the Planned Giving Team

If you would like to discuss leaving a gift to the Arthritis Society or have questions, please contact our Planned Giving Team.
"The last months of the year are a good time to review your portfolio. While many investors methodically do tax loss harvesting at the end of the year to realize their capital losses, it is also a good opportunity to identify the stocks with a high level of capital gains that you intend to sell to rebalance your portfolio.  Instead of selling these stocks and donating the cash proceeds to a charity, just ask your favourite charity for a share transfer form [PDF]. This will be the most tax smart method of donating to a charity."
- Tina Tehranchian, CFP, CLU, CHFC, is a senior financial planner at Assante Capital Management Ltd. in Richmond Hill, and a financial educator, speaker and author, specializing in philanthropic tax planning.