DONATE STOCK

Support NIFC with a stock donation

Stocks, bonds, and mutual funds might not be the way you’re used to donating but giving with securities has never been easier. Not only can a securities donation make an even bigger difference, it can also reduce how much you owe come tax time.

How do I donate stock?

To make a gift of publicly traded securities:

  1. Download and complete our Stock Donation Form.
  2. Send the form to your broker authorizing the transfer of your shares. It typically takes 3-5 working days for stocks and 10-15 days for mutual funds to settle within our account.
  3. We will promptly sell the shares. Once proceeds are received, we will send you a tax receipt (typically within 3-4 weeks).

Complete your mutual funds donation before December 1st or all other securities donations before December 3rd to qualify for a 2021 tax receipt. Though we continue to process securities up until December 31st, 2021, any donations received after December 3rd will not receive a 2021 receipt.

Please consult your broker or financial advisor with any questions.

How will my donation be valued?

Your official receipt for income tax purposes will be valued at the closing price on the day when the shares are legally transferred to NIFC’s account at our custodial agent, RBC Investor Services.

Please note: Shares are considered legally transferred only when delivery is confirmed by our custodial agent.

What if I use a Direct Investing platform such as RBC Direct Invest, TD Waterhouse Direct Investing, Scotia iTrade, or QuestTrade?

You may need to complete the Letter of Authorization/Direction Form available from your Direct Investing firm. Our Stock Donation Form includes all the information you will need to complete their form.

 

How can I make a bigger impact by donating securities directly?

By donating securities directly, as opposed to selling them and donating the proceeds, your capital gains tax can be eliminated. This means more money for the charity and a greater charitable tax credit for you.

Sell securities for cash
Donate after-tax proceeds
Donate securities directly
Original cost of securities $1,000 $1,000
Current market value $5,000 $5,000
Capital gains $4,000 $4,000
Tax on capital gains $920 0
Donation amount after tax $4,080 $5,000
Your charitable tax credit $1,876 $2,300
Your charity gets $920 more
Your charitable tax credit is $424 more
  1. This assumes a 46% marginal tax rate. For calculating capital gains tax, this rate is applied to 50% of the capital gain.
  2. $4,080 represents the full value of $5,000.00 minus estimated tax of $920.00.

Source: CanadaHelps.org

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