Marketable Securities

Gifts of marketable securities are gifts of stock and shares from a publicly traded company. When a stock is performing well, it is subject to a capital gains tax. Individuals who are cashing in a stock for personal use are subject to pay a tax on 50 per cent of the capital gain.

In May 2006, the Federal Government introduced new rules for donating Marketable Securities. These new rules translate into major tax savings for CHW donors as those who transfer stocks directly to CHW no longer pay Capital Gains Tax. It is important to note that all donations of Marketable Securities must be assessed on a case by case basis to ascertain if this tax exemption applies. In most every case, however, this method of donation provides an excellent tax benefit for donors. Instead of selling the shares first and donating the cash proceeds, the stocks are contributed directly to CHW.

A tax receipt is always issued for this type of donation based on its value on the date of transfer to CHW, and not the pledge date. A donation of publicly traded Canadian and International stocks, as well as certain Mutual Funds, is tax exempt under this program. Donors who wish to make a gift of Marketable Securities to CHW are asked to contact the Finance Department. The CHW National Office will make all of the necessary arrangements to process your donation.

To learn more about gifts of marketable securities, please contact the National Office at 1.855.477.5964 x 107.