Chalice
Gifts of Publicly Traded Securities and Mutual Funds

A few years ago, the Federal government eliminated the capital gains tax on charitable gifts of Publicly Traded Securities and Mutual Funds.  If you own stocks or mutual funds that have grown in value, you will face a tax bill when you sell them.  By donating them directly to Chalice (Canada) you can eliminate your tax bill and make a significant gift at the same time. This giving option is attractive if you have appreciated investments and wish to make a donation from savings rather than cash flow.

Why it is Beneficial

Simple and Convenient– Shares are easy to transfer.  Your broker transfers the shares from your account directly to Chalice (Canada)’s brokerage account.  The date of your donation will be the date the shares are received in our brokerage account.

Tax Advantages– By donating your appreciated stock shares or mutual funds directly to Chalice (Canada) you will receive two kinds of tax savings: a tax credit in the form of a charitable tax receipt and the elimination of the capital gains taxes owed on the disposition of the shares.

Another Tax Advantage– Gifts of Publicly Traded Securities and Mutual Funds can also be given through your Will.  This is an excellent way to reduce capital gains taxes upon death, thereby significantly reducing taxes which may increase inheritances to your loved ones. If this option is of interest to you please contact Chalice for a free Will Planning Kit.

Reduced Brokerage Fees – Many brokerage houses forego fees for charitable transactions. Ask your broker.

Recognition – Your gift can be honoured during your lifetime.

Opportunity– An opportunity for you to provide a significant gift of hope to many and assist Chalice with our simple goal to bring Christ’s Loving Presence to those suffering the sorrowful stress of poverty.

How it Works

Your gift will not qualify for the capital gains tax elimination if your shares are sold and the cash then gifted to a charity. The donation must be made "in kind" to qualify for the capital gains tax exemption, so the securities must be transferred directly into Chalice (Canada)’s brokerage account. The value of the donation receipt will be based on the closing price of the securities on the day that they are received into our account in accordance with Canada Revenue Agency regulations. Your charitable tax receipt is issued in February of the calendar year following the year of donation unless otherwise requested.

Please Seek Expert Advice

Chalice (Canada) strongly recommends that you seek professional advice to ensure your financial goals are considered, your tax situation reviewed, and your planned gift is tailored to your circumstances.

Guidelines for Transferring Assets

Gifts of Publicly Traded Securities and Mutual Funds

Brokerage Accounts

The easiest and safest method of transfer exists if your shares are in a brokerage account. Shares may be transferred by your broker, directly from your brokerage account into Chalice (Canada)’s brokerage account with instruction on your Transfer Intent Form.

Share Certificates

If you own share certificates, you may donate an endorsed certificate with your signature guaranteed by the bank or your broker, or an unendorsed certificate and a signed stock or bond power of attorney with the signature guaranteed. Certificates may be delivered by courier to Chalice (Canada) if due precaution is observed, that is, the unendorsed certificates and the stock or bond power of attorney are delivered separately.

Re-registering the share certificates in the name of Chalice (Canada) is not recommended, as re-registration can take more than two weeks during which time the value of the shares can change.

Transferring Mutual Funds

To transfer Mutual Fund Shares, the donor must send a letter of instruction to the fund company (e.g. AGF or McKenzie Financial, etc.)  You, the donor must sign documents provided by the fund company.

A letter of instruction states:   “I request that (Name of Mutual Fund) immediately transfer (number) _____ shares from my account #_______________ into the name of Chalice (Canada).   Do not sell or redeem this donation from my account.  After Chalice (Canada) receives confirmation that the shares are in its account, it may authorize the sale of the shares to use to further its mission.”

Chalice (Canada) is pleased to provide you with a Securities Donation Transfer Intent Form. This form should accompany your letter of instruction to your financial institution.

For our Broker’s Account Information please contact Marilyn Hall at 1-800-776-6855 ext. 202, direct 1-902-252-3917 ext. 202 or email marilynhall@chalice.ca

Transfer Intent Form

Securities Donation Transfer Intent Form

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