Gift of securities

Make a securities donation

What is Stock and Securities donation ?

Donating stocks or securities involves giving your financial assets. Eligible securities include shares of publicly traded stocks, bonds, investment fund units, and stock options.

To whom does it apply?

This is for anyone considering making a significant donation and who holds financial securities.

Benefits of donating Securities.

It can be advantageous to consider donating these securities before selling them. Indeed, you will benefit from a donation credit that entitles you to a tax receipt equivalent to the fair market value of the securities on the date the shares are deposited into the HMR Foundation's brokerage account

If you sell a security for a price higher than what you paid to purchase it, you will typically owe taxes on that gain. However, if you decide to donate this money to the Foundation, you won't have to pay taxes on this capital gain.

1. Inform the FHMR

Contact the HMR Foundation to discuss your donation intention.

2. Discuss it

Contact your financial advisor to determine which of your securities will provide you with the greatest tax advantage.

3. Fill the form

Fill out and sign the securities donation form.

4. Send the form to the banking institution.

Send the duly signed form to Jean-Paul Galli at Banque Nationale Courtage Direct, securities broker.

5. Confirm the transfer to the HMR Foundation.

Send a copy of the form to the HMR Foundation to ensure follow-up and confirm that the transfer is completed within a reasonable timeframe.

6. Receive your tax receipt.

La Fondation HMR vous fournira un reçu fiscal pour votre don, indiquant la valeur marchande des valeurs mobilières à la date de leur réThe HMR Foundation will provide you with a tax receipt for your donation, indicating the fair market value of the securities on the date they were received in the brokerage account. The receipt will also mention the quantity and name of the securities received, which is important for your income tax return.

Frequently asked questions

Can I dedicate my donation of securities?

How much does a donation of securities cost?

Let's take the example of securities acquired at a cost of $6,000, with a market value at the time of sale of $10,000. This allows for a donation of $10,000. There is tax to be paid on the capital gain of $6,000. Let's compare such a donation with donating securities without selling them. In both cases, there is a tax credit for a donation equivalent to $10,000.

Tab :

Selling securities and donating cash	Donating securities
Selling securities	$10 000	- $
Tax to be paid on the capital gain ($4 000 x 50 % x 50 %)	$1 000	- $
Donation amount	$5 000	$5 000
Net tax savings ($5 000 - $1 000)	$4 000	$5 000
Real cost of donation	$6 000	$5 000

By choosing to donate stocks directly to FHMR without selling them, it will cost you $1,000 less for a donation of $10,000.

Any other questions?

If you would like more information on life insurance donation or are considering making one, our team is here to answer all your questions.

Expert

Valérie Paquette

E-mail

vpaquette@fondationhmr.ca

Phone number

514-252-3435 Ext 104