Marketable Securities: You may donate appreciated securities now or in the future
What are gifts of securities?
Publicly listed securities are all securities listed on Canadian and major international exchanges. Your donation must be donated directly to the charity (like an "in-kind" gift) to qualify; usually they are transferred by your broker Parkinson Society British Columbia, not the cash proceeds from the sale.
This giving option is now even more attractive for donors who have appreciated stock and want to make a donation from savings rather than current cash. In May 2006 the Federal Government introduced the complete elimination of tax payable on gifts of public securities. This gift will provide two kinds of tax advantages:
- A tax credit (41% to 48% depending in which province you reside), and
- No capital gains paid on the disposition of the stock.
For donors still holding "demutualized" shares, a budget measure presents a unique opportunity as these shares have a zero cost base. ("Demutualization" was part of the process some insurance companies undertook to convert ownership by policyholders to ownership by shareholders. Policyholders were offered shares, cash or a combination of both.)
To give a gift of shares, you have a choice of giving shares electronically or in paper form if you still hold those types of shares. Contact your own stockbroker and tell him or her that you wish to make a gift of certain securities (the name and number) to Parkinson Society British Columbia. Then notify Stephanie Devine or Trang Pham, RBC Dominion Securities by phone at 604 257 3210 that you will be making this gift and the type and number of shares.
Please also notify PSBC (Jean Blake at 604-662-3240 or firstname.lastname@example.org). Notification must be received in writing, via email, with a clear indication in the subject line of a stock gift and from which donor.
Transfer of Securities
We ask that you notify Parkinson Society British Columbia when there is an impending transfer of securities (Jean Blake at 604-662-3240 or email@example.com).
You may gift the securities through an electronic transfer (the most common) or by delivering paper certificates. You should determine the exact date of transfer of ownership, since this determines the value of the shares. Or you may leave that to your broker. Note that the tax receiptable amount of this gift will be based on the average of the high/low value of the shares on the day they are received.
- If stock is transferred electronically: Your broker will handle the electronic transfer. The accompanying documentation (Letter of Direction) must also be part of the gifting process. The day they are received by RBC Dominion Securities is the date of receipt.
- If the stock is transferred in paper shares: You must provide the paper shares and all documentation (Letter of Transmittal, Letter of Direction, Power of Attorney to Transfer Securities and Letter of Authorization). If they are delivered to the PSBC office, they will be received and date-stamped; this will determine the date of receipt. Or deliver to Stephanie Devine at RBC Dominion Securities, 666 Burrard Street, Suite 2500, Vancouver, BC.
- You should note in the Letter of Direction that you wish the funds to be deposited into the General Fund (unrestricted or restricted to research) or to the Endowment fund (to be held and disbursed further into the future). Notify RBC Dominion Securities to deposit all funds received from the sale of the securities to the PSBC Account: 803 08710 19 | CUID: DOMA | DTC: 5002 | EUROCLEAR: 90065.
- Once this information is confirmed from TD Waterhouse in writing, a charitable tax receipt will be issued to you.
- Letter of Direction to Parkinson Society British Columbia (a letter from you to send to PSBC saying how the gift will be given)
- Fax of Instruction to your broker (to direct the sale of securities to PSBC)
- Letter of Transmittal for paper shares (to accompany paper shares in case they are lost)
- Power of Attorney to Transfer Securities (POA) Form for paper shares (this is a critical step for TD, since it helps to reduce fraudulent transactions from occurring)
- Letter of Authorization Form for paper shares (to accompany the POA form, which the donor must complete in the presence of an employee of a Chartered Bank or Financial Institution)