Publicly Traded Securities & Mutual Funds

The 2006 Federal Budget introduced a special tax incentive on gifts of Publicly Traded Securities and Mutual Funds. You can give a gift of publicly traded securities to the Canadian Mental Health Association Toronto Branch and you will not pay any capital gains tax. If you own stocks or mutual funds that have grown in value, you will face a tax bill when you sell them. By donating them directly to the Canadian Mental Health Association Toronto Branch you will

• Eliminate your tax bill
• Receive a tax receipt for the full value of the shares
• Make a significant gift at the same time.

Gifts of Publicly Traded Stocks and Mutual Funds - The Benefits to You

• Opportunity
  An opportunity to make a significant gift.
• Tax Advantages
  The charitable tax receipt effectively cancels the capital gains tax owing. By donating your stocks or mutual funds directly to the Canadian Mental Health Association Toronto Branch you will eliminate your tax bill.
• Reduced Expenses
  You can reduce the cost of making your gift to the Canadian Mental Health Association Toronto Branch.
• Simple and Convenient
  Securities are easy to transfer. Your broker transfers the shares from your account to the Canadian Mental Health Association Toronto Branch's brokerage account.
• Recognition
  You and your gift can be honoured during your lifetime.

Please Seek Expert Advice: If you are thinking about transferring assets that have appreciated in value, you should seek expert advice from a tax specialist or your broker. The Canadian Mental Health Association Toronto Branch strongly recommends professional advice to ensure that your financial goals are considered, your tax situation reviewed and your planned gift is tailored to your circumstances. For further information, please call 416-789-7957 x 262.

"How To" - Gifts of Publicly Traded Securities

How does it work?

The Federal Government introduced special tax incentives in the 2006 Federal Budget for gifts of publicly traded securities and mutual funds. The benefit in making this type of gift is that the charitable tax receipt effectively cancels any capital gains tax owing. Donors may make gifts of publicly traded shares, including mutual funds, traded on approved stock exchanges in Canada and other countries (the United States would be the most common other country).

A donation receipt is issued for the fair market value of the security on the date of transfer. The securities must be transferred to the Canadian Mental Health Association Toronto Branch and not be sold by you, the donor. The gift will not qualify for the capital gains exemption if the securities are sold and the cash then gifted to a charity.

Guidelines for Transferring

The easiest and safest method of transfer exists if the securities are in a brokerage account. By instructions from you to your broker, the securities must be directly transferred electronically from your brokerage account to the Canadian Mental Health Association Toronto Branch's brokerage account.

Contact information to start the process of transferring publically traded securities to the Canadian Mental Health Association Toronto Branch: Heather Armstrong, Resource Developer, 416-789-7957 x 262.

To transfer mutual fund shares, instruct the fund company to transfer the mutual funds directly to the Canadian Mental Health Association Toronto Branch's brokerage account.

Caution: ALWAYS ensure that securities or mutual funds are transferred directly to the Canadian Mental Health Association Toronto Branch when giving a gift of listed securities or mutual funds. If you sell the securities or redeem the mutual funds and then donate the cash to the Canadian Mental Health Association Toronto Branch there is NO special tax treatment.