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Donating Gifts of Securities

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CanadaHelps makes receiving gifts of securities an efficient and smooth process!

In its 2006 budget, the Canadian federal government eliminated capital gains tax on listed stocks donated to registered charities. Donations must now be securities that are traded on a public market in Canada or the United States. This includes stocks, bonds, and mutual funds, but excludes shares in private corporations and stock options. This is great news for both donors and charities!
 
For donors, they no longer have to pay the standard capital gains tax rate on gifts of publicly listed securities. They also become entitled to a charitable income tax deduction for the fair market value of the gifted securities on the date the securities are received in the CanadaHelps brokerage account.

For charities, donations of securities are simple and easy through CanadaHelps. You don’t need a brokerage account to receive gifts of securities through us. We sell the securities and transfer the sale value into your account like your regular donations. The same 3% transaction charge applies.

CanadaHelps is proud to be the first charity in Canada to accept gifts of securities donations online. Below we have outlined exactly what happens during a transaction, and have answered some frequently asked questions about gifts of securities.

 

How It Works
  1. A CanadaHelps donor completes the online form.
  2. The donor submits the Letter of Authorization to their financial advisor.
  3. Securities are transferred to CanadaHelps.
  4. CanadaHelps sends the donor a tax receipt.
  5. Securities are sold and the donation is forwarded to the charity.

 

How long does it take for a donation of securities to reach my charity?

It depends. Generally, most securities take a few days to get to CanadaHelps once the donor has submitted the Letter of Authorization to their financial advisor. Some securities, however, can take a few weeks. Once CanadaHelps receives the securities and they are sold, we distribute them to your charity in the next disbursement cycle. This can take as little as one week.

How much actually goes to my charity?
As the donation of securities is a transfer in ownership, it is subject to the fee structure donors set up with their broker. CanadaHelps will not levy any transfer fees; however, there is a nominal 3% transaction fee. This amount covers all brokerage fees, transaction fees, banking costs, receipting, reconciliation, and disbursements incurred by CanadaHelps. This 3% is deducted based on the proceeds of the sale of securities donated, before the donation is sent to the charity, and is a modest charge for the service that CanadaHelps provides to Canadian donors and the charities they support.
 
 
What does my charity have to do?

As a charity, you don’t have to do anything! CanadaHelps takes care of everything: accepting the donation, selling the securities through our broker, issuing an e-tax receipt to the donor, and transferring the funds to you. If you haven’t done so already, register your charity on CanadaHelps. Simply visit this page to do so. Sign-up is free, quick, and has many advantages. Accepting online donations, receipting via secure email PDF receipts, and advanced online reporting features are costly for charities to create and maintain on their own. The CanadaHelps Web site gives charities across Canada, regardless of size or operating budget, access to a low-cost online fundraising solution.

 
Gifts of Securities Donation Process

 

Donations of Securities through CanadaHelps Webinar Recording
 
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