Donations of Stocks and Mutual Funds

Why Donate Stocks or Mutual Funds?

When you make a cash donation, you receive a donation receipt for the exact amount donated. These donations are made with after-tax dollars, meaning the money comes from income you’ve already paid income tax on.

Stock and mutual fund donations offer significant tax advantages:

• No capital gains tax – When you donate stocks or mutual fund units directly, you don’t sell the security first, so you pay no capital gains tax
• Donate with before-tax dollars – This allows you to effectively donate with before-tax dollars while receiving the tax deduction for the entire value of the donation
• Maximum benefit for appreciated securities – This is especially beneficial if you have significant capital gains on the security, since you never pay that tax and realize a deduction on the before-tax value

Important note: The precise amount of benefit depends on your particular tax circumstances, including your income tax bracket, gross income (donation deductibility is usually maxed out at 18% of gross income), other donations made in the year, and the amount of capital gain on the securities donated. You should consult your accountant for precise calculations on how much of the donation can be used as a tax deduction.

How to Donate Stocks or Mutual Funds to Broad Reach Canada

Broad Reach Canada has an account with the Bank of Nova Scotia that allows us to receive donations of publicly traded securities such as stocks and mutual funds.

Process Overview

STEP 1 – Request the Direct Transfer of Stock or Mutual Funds document by filling out the online form below.  We will send a PDF and further instructions to the email you provide.

STEP 2 – Fill out and send the Direct Transfer of Stock or Mutual Funds Form to [email protected] and your brokerage, which will transfer the stocks or mutual fund units.  The form can be filled with software like Adobe Acrobat or Apple Preview, or printed and done by hand.

STEP 3 – Broad Reach Canada will issue you a donation receipt for the value of the securities on the date they are sold, in accordance with your instructions regarding the timing of redemption as set out in the Direct Transfer of Stock or Mutual Funds Form.

If you have any questions, please contact: [email protected]