The QEII Foundation welcomes gifts of stock / publicly traded securities. The federal government has created special incentives to encourage such gifts by eliminating the Capital Gains Tax. Capital gains are no longer included in income when a donation is made to a charity of a publicly traded security.
- The donor contacts the QEII Foundation to express an interest in giving a gift of stock. The Foundation determines the intent of the gift along with the relevant information for issuing a tax receipt.
- The Foundation contacts BMO Investment Services with the particulars of the proposed gift.
- The donor or advisor is contacted by Shari Craig, Trust and Investment Services Administrator, BMO. Her number is (902) 421-3255.
- The donor or his or her brokerage firm forwards the stock certificate or electronic information to BMO and the value of the gift is determined.
- On receipt of the shares, they will be sold. Verification is then given to the Foundation from BMO by fax and phone concerning the amount of the tax receipt.
- The Foundation produces the receipt and letter of acknowledgement and forwards it to the donor.
Let’s imagine that you would like to donate $7,000 to the QEII Foundation and you also happen to own 200 shares of a Canadian public company, now worth $35 each, totaling $7,000. The adjusted cost base (i.e. the actual cost of an investment to you) of these shares is $1000. By donating your shares instead of selling them and giving the sales proceeds, you will avoid any capital gains tax and receive a receipt for the full $7000 donation.
Call the QEII Foundation at (902) 473-7932 or contact your financial advisor to find out more.
