Gifts of Securities & Flow-Thru Shares

Gifts of Securities & Flow-Thru Shares

A gift of securities is often of interest to individuals who have appreciated securities and would like to make a more significant donation during their lifetime or who intend to leave a bequest to a charity like JDRF Canada. Current tax rules make it very attractive to donate gifts of publicly traded securities to charities. Federal legislation now exempts appreciated securities from capital gains tax if they are donated directly to a charity. This includes gifts of stock, bonds and mutual funds.
 

Gifts of securities are an appealing option for:
  • Investors of any age who have appreciated securities and wish to make a gift to JDRF Canada
  • Donors who wish to simplify their affairs by divesting themselves of some of their holdings
  • Donors who intend to make a bequest to JDRF Canada and are interested in advancing their legacy through a gift of securities
  • Estates which are liquidating assets, as a gift of securities has more advantageous tax implications than a gift of cash
     
Benefits of a Gift of Securities
  • Completely eliminate your capital gains tax. When you sell publicly traded securities, you must pay capital gains tax on 50 per cent of the increase in value since you bought them. However, if you donate these same securities directly to JDRF Canada, you won’t pay any capital gains tax.
  • Receive a charitable tax receipt for the full market value of your donated securities. The charitable tax receipt you receive from donating your securities will help you reduce the taxes owed on your other taxable income. Donations in excess of your annual limit (i.e., an amount that equals your net annual income) may be carried forward for up to five years. The amount of your tax receipt for your gift of securities will be based on the closing price on the date your securities are transferred to JDRF’s account at our custodial agent (RBC Direct Investing Inc.).
  • Get tax benefits for your estate for gifts of securities in your Will. Your estate will receive a charitable tax receipt for all donations of securities made through your Will. This can help reduce the taxes on your estate in the year of your death. If the donation exceeds your limit, your executor can claim the balance against the year preceding your death.

There are circumstances where a gift of securities can offer other benefits. Please consult with your tax, financial or legal advisor to determine if any of these methods would be advantageous to you:


Stock Options

If you’re considering using employee stock options to make a gift, exercise the options and transfer the shares within 30 days and within the same calendar year. There will be no capital gain and no taxable employee benefit.


Flow-Through Shares

JDRF accepts the donation of publicly traded, flow-through shares (FTS). You’ll receive a tax credit for the fair market value of your donated shares as well as federal and provincial exploration tax credits for eligible expenses. FTS are a unique giving vehicle; please contact JDRF or your broker for further details.
 

Download Securities Transfer Form

 

All donors are encouraged to seek independent financial and legal counsel when executing wills, trusts, contracts and other agreements. You may also wish to consult with your broker before making a gift of securities.

Independent Counsel

JDRF Canada will provide you with information and assistance to make a gift of securities. However, the ultimate responsibility regarding evaluations, tax deductibility, and/or similar legal local, provincial or federal compliance issues rests with you and/or your counsel.

 

To learn more, please fill out a request for information, or contact:
Caroline Lewis
JDRF Planned Giving Manager
Phone: 647-789-2044
Toll-free: 1-877-287-3533 ext. 2044
Email: plannedgiving@jdrf.ca
Charitable Number: 111897 6604 RR0001

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