Gifts of Stocks and Securities
Donate “In-Kind” Stocks, Bonds and Mutual Funds to Friends of the Earth – the most tax effective way to give
If you own publicly traded securities that have increased in value since you purchased them, using them to make your charitable donations is the most tax effective way to give. Here’s how. You may donate publicly traded securities, stocks and bonds as well as mutual funds held in a non-registered investment account by transferring them “in-kind” to Friends of the Earth. “In-kind” means that you do not sell the security and transfer cash as your gift. Rather your securities are transferred to Friends of the Earth brokerage account and Friends of the Earth sells them. (If you sell them first, you will pay tax on 50% of the capital gain.) You will receive a charitable receipt from Friends of the Earth for the full market value of the securities on the day you initiate the “in-kind” transfer and you pay no tax on the capital gain.
You can only donate securities that are held in a non-registered investment account. Investments held in a registered account (RRSP or RRIF) do not qualify for these tax savings. Always donate the stocks, bonds or mutual funds with the greatest capital gain because this will save you the most tax.
To make such a gift is easy:
You ask your financial institution to provide you with a third-party transfer form or charitable donation form.
Or download, complete and sign our Securities Transfer Form for publicly traded securities and your financial advisor will initiate the transfer for you.
What happens when Friends of the Earth receives the shares?
It is our policy to sell the shares immediately upon receipt and convert to cash. Upon receipt of the transferred securities, Friends of the Earth will issue a charitable tax receipt based for the full market value of the securities on the day you initiate the “in-kind” transfer. The transfer of shares can take a few days or weeks in the case of mutual funds, please allow up to 4 weeks for this process to be completed.