marketable securities

If you are considering selling marketable securities to make a cash donation, you must pay capital gains tax (if the sale price exceeds your adjusted cost base) which reduces the net amount available to donate. However, no capital gains tax is payable if marketable securities are donated to a charity - so the charity gets the full amount and the donor gets a tax deductible receipt for the full amount.

We recommend using the United Church of Canada Foundation for this purpose: Click here for more information.

UCCF is set up to receive marketable securities, they sell the securities within one business day, and they do a direct deposit to RDLUC’s bank account. UCCF is a safe, time and cost efficient avenue (they charge 1.5% to a maximum $250, which is netted off the donation).

The steps are:

1. Contact your broker or discount broker. They will provide you with their form (e.g. donation authorization – electronic transfer of securities). If using a discount broker, you may need to ask to speak with a supervisor who has more experience. Complete and return the form.

2. Notify UCCF of the pending transfer – a “securities transfer form” can be downloaded from the UCCF website. Designate that the proceeds should go to Red Deer Lake United Church. UCCF will provide a charitable donation receipt for income tax purposes.

3. Notify RDLUC so we can look for arrival of the funds and record it properly. The contacts are: Mike Jackson, Treasurer, michaelsidneyjackson@gmail.com and Michelle Den Hoed, Chair of Finance Team, mich.denhoed@shaw.cI