| Gifts of Securities | | Print | |
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Click here to download the Gifts of Securities brochure. 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. 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 no longer 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 you 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. Demutualized Shares "Demutualization" was part of the process some insurance companies undertook to convert the ownership of policyholders to ownership by shareholders. Policyholders were offered shares, cash or a combination of both.For those still holding "demutualized" shares, the 2006 budget measure presents a unique opportunity to donate these shares as they have a zero cost base, yet still receive the same tax benefits as other securities. Gifts of Listed Securities The 2006 Federal Budget has given donors more reason to use gifts of listed securities to support charitable organizations such as the Ross Memorial Hospital Foundation. Listed securities donated directly to registered charities are no longer subject to capital gains tax. 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?
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