However, when you donate publicly listed securities by directly transferring them to the DMRF, none of that gain is included in your taxable income. You will receive a tax receipt for the current market value of the securities, producing a tax credit worth nearly 50 per cent of your gift!
The same 'zero per cent' inclusion rate on capital gains also applies to gifts of securities in your will.
If you are reluctant to use securities to make your gift because you think they will continue to grow in value, you could consider donating them and then use available cash to repurchase the securities on the market. This will raise the cost base of the securities, so when you eventually sell them in the future you will be taxed only on gains accrued since the repurchase.
Please note: To take advantage of the 'zero per cent' capital gains inclusion rate, the securities must be transferred directly. This does not apply if you sell the securities and donate the proceeds.
Disclaimer: Please note that DMRF does not provide tax or financial advice. The Foundation strongly recommends you consult an expert, such as an accountant, financial advisor, or estate planner, prior to making a significant donation of any type.
Instructions for a Gift of Publicly Listed Securities
A donation of securities allows you to support local medical research at Dalhousie Medical School and its affiliated teaching institutions throughout the Maritimes, while taking advantage of the elimination of capital gains tax on the shares.
THIS PROCESS CAN TAKE PLACE IN FOUR SIMPLE STEPS:
1. Contact your financial advisor to discuss your interest in making a gift to DMRF;
2. Contact Joanne Bath, DMRF Director, Philanthropy, (902)-494-1978 (w) (902)471-7031 (c) or firstname.lastname@example.org, to discuss the purpose of your gift, units being considered, and to provide her with your broker's contact information.
3. To initiate the transfer, it is necessary for your broker to contact the Foundation's custodian:
RBC Investor Services Trust
155 Wellington Street West, Toronto, ON, B5V 3L3
Kam Sandher, Associate, Service Assurance, Client Operations
Account: #152865001 (Canadian shares) #174404001 (US shares)
Account Name: Dalhousie Medical Research Foundation
FINS #: T720
CUID #: RTRA
DMRF will send you an acknowledgment of your donation in a timely fashion, with tax receipt to follow.
Disclaimer: Please note that DMRF does not provide tax or financial advice. The Foundation strongly recommends that you always consult an expert, such as an accountant, financial advisor or estate planner, prior to making a significant donation of any type.
Please Note: The value of the donation receipt is based on the closing bid price on the day the securities are legally received in the Foundation account with its custodian.
FULL CONTACT INFORMATION:
Ms. Joanne Bath, Director, Philanthropy
Dalhousie Medical Research Foundation
5743 University Avenue, Suite 98
PO 15000 Halifax NS B3H 4R2
(w) (902) 494-1978 (c) 902-471-7032 or toll free: 1-888-866-6559