Shares and Securities

A gift of securities—stocks, bonds, or mutual funds that have grown in value—can bring hope to people in need. 

Where to Start: 

When deciding to make a gift of securities, we would recommend taking the following steps first: 

1. Determine the value of your gift. 
   • Look at the fair market value of the securities (stocks, bonds, or mutual funds) on the date of donation. 
2. Understand your capital gains tax savings. 
   • When you donate securities directly, you avoid paying capital gains tax on the amount of appreciation. 
   • Example: If you bought 100 shares at $20 each and their current market value is $50 each, the capital gain would normally be taxed if you sold them. But by donating directly, you eliminate that capital gain tax. 
3. Calculate the tax credit for your donation.
   • You will receive a charitable tax receipt for the full fair market value of your securities donation. 
   • For example, if you give $5,000 worth of securities, you can claim that full amount against your taxable income. 

Example Calculation for a Gift of Securities 

Scenario: 

• You bought 100 shares at $20 each = $2,000 total cost. 
• Their current fair market value is $50 each = $5,000 total fair market value. 
• You donate these securities directly to Evangel Hall Mission rather than selling them. 

When you donate the securities directly: 

1. Avoid Capital Gains Tax: 
   • The difference in value from $20 to $50 represents a capital gain of $30 per share ($50 - $20). 
   • You would pay tax on 50% of the capital gain if you sold them ($30 x 50% = $15 taxable gain per share). 
   • Instead of this taxable amount, when you donate the securities directly, you avoid paying tax on these capital gains entirely. 
2. Receive a Tax Receipt for the Full Fair Market Value: 
   • Your charitable tax receipt would be for $5,000, which is the full fair market value of your gift. 
3. Apply the tax credit to your taxable income: 
   • Let’s assume a 30% combined federal and provincial tax rate. 
   • $5,000 x 30% = $1,500

This means you could save up to $1,500 in taxes through the tax credit while also avoiding capital gains tax completely. 

Your Next Steps: 

To make a gift of securities to EHM, all you need to do is speak with your financial advisor about what donation makes most sense for your portfolio and have your broker transfer the stocks to EHM’s account at Caldwell Securities. 

The stocks you donate will be transferred from your brokerage account to EHM’s account at Caldwell Securities Ltd. It will be sold there 100% commission free, so that 100% of your donation goes toward supporting EHM’s programs and people in need of assistance! 

You will receive a tax receipt for the value of your shares on the day of donation, pay no tax on your capital gains, and make a big difference in people’s lives! 

Please complete our securities donation form, available for download here, or instruct your broker to transfer the securities to:

Receiving Institution: Caldwell Securities Ltd. CUID: CALT
150 King Street West, Suite 1710
Toronto, Ontario M5H 1J9
Client Service Representative: Brendan Caldwell
Phone: 416-862-7755
Fax: 416-862-2498