The QEII Foundation welcomes gifts of securities, such as stocks, bonds and mutual funds. The federal government has created special incentives to encourage such gifts by eliminating the Capital Gains Tax. This change to the income tax act makes giving securities even more beneficial to you and the QEII Health Sciences Centre Foundation.
In Canada when you dispose of capital property, with some exceptions, one-half of any capital gain (the difference between the original cost of the property and the current value) must be taken into your taxable income. This can greatly increase your income tax payable in a given year.
However, when you transfer publicly listed securities directly to the QEII Foundation none of the gain is taxed; and you receive a tax receipt for the full market value of the securities! This is true whether the gift is made now or through your Will. Click here for an example of how this gift works.
In cases where there is a capital loss, donating these securities allows you to realize the capital loss and apply this loss against past or future capital gains. Capital losses can be carried back three years and forward indefinitely to offset capital gains.
Click here for instructions on how to arrange an electronic or paper certificate gift of publicly listed securities. A power of attorney form is required to donate a paper certificate and is provided with the instructions. This form is not required for an electronic transfer.
Your broker will require written instructions from you to transfer the securities electronically. Click here for a sample authorization form to transfer publicly listed securities.
Please note that in order to qualify for this special tax treatment the securities must be transferred directly to the QEII Foundation and not sold with the proceeds contributed.
The information on this website is provided for the general information of donors and friends of the QEII Health Sciences Centre Foundation. It is not intended to be a substitute for professional legal or financial advice. As individual situations may differ you are strongly advised to consult with your own professional legal, estate planning and financial advisors before deciding upon a course of action.