Gifts of Securities

Gifts of securities, such as publicly listed stocks, bonds and mutual funds, receive special tax treatment. Normally when you dispose of this type of capital property that has appreciated in value, 50 per cent 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 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.

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 or joanne.bath@dal.ca, 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 & Treasury Services
5161 George Street, 4th Floor
Halifax, NS B3J 1M7RBC Investor & Treasury Services 

Kam Sandher, Senior Client Representative
Telephone:  416-955-7530
Email:  kamaldip.sandher@rbc.com
FAX:  416-955-6138

 

Transfer Information:
Account #152865001 (Canadian shares)  #174404001 (US shares)
FINS # T720
CUID # RTRA

4. DMRF will send you an acknowledgement 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
1-A1, Sir Charles Tupper Medical Building
5850 College St. PO 15000 Halifax NS B3H 4R2
(w) (902) 494-1978 (c) 902-471-7032  or toll free: 1-888-866-6559
joanne.bath@dal.ca