gift of stock
A donation of securities is a great way to make a significant difference to our youth, while reaping some tax benefits. Your gift can be in the form of shares, bonds or mutual funds.
Use our online tax credit calculator to compare the tax advantages when donating publicly traded securities to the tax on an equivalent cash gift. Simply enter the current value of the shares you are considering donating and the purchase price of the shares.
For more information about giving a gift of securities, please contact:
Associate Director, Development
Covenant House Toronto
No capital gains tax
The elimination of the capital gains tax on a gift of securities may create a considerable tax advantage to you, depending on your financial situation.
If you make a gift of appreciated stock, you will receive the benefit of a tax receipt for the fair market value of the stock, and not be subject to pay the capital gains tax. For example, if you were to donate stock that was originally purchased for $500 and now has a fair market value of $1,000, you will receive a tax receipt from Covenant House for $1,000 and you will not have to pay any tax on the gain. However, if you were to sell the stock and then donate the money later, you would be required to pay tax on the capital gains at 50%.
It is important to seek the advice of your financial advisor when making a donation of securities.
When we receive your donation of stock, we immediately sell the shares through the assistance of CIBC Wood Gundy, our investment firm.
Share donation transfer instructions
In order to take advantage of the tax savings, you must transfer the ownership of your shares to Covenant House. Please complete the Share Donation Transfer Form. Please note: To receive a tax receipt, this form must be completed.
When your stock is transferred to our account, your personal information does not automatically come with it. The information on this form is required to cross reference the transfer and provide you with a tax receipt.
Information for your broker
To transfer securities, please provide your broker with the following information pertaining to Covenant House Toronto:
Client Name: Covenant House Toronto
Receiving Institution Information:
CIBC Wood Gundy
BCE Place, 161 Bay Street, 4th Floor
Toronto, Ontario M5J 2S8
Broker: Bryan Baker: (416) 594-7954
FEDWIRE: BK OF NYC/WGI
Thinly traded stock
If you are interested in donating stock that may be difficult to liquidate or considered volatile, please contact Christine Foisy-Monk, Associate Director, Development, at email@example.com or (416) 204-7062. Covenant House reserves the right to decline a gift of securities.
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