Donating Publicly Traded Securities
Thank you for considering a donation of publicly traded securities to The Ottawa Hospital Foundation. The Foundation can accept different types of securities, including publicly listed shares, bonds or mutual fund units.
The Foundation strongly recommends that you consult with your own financial advisor(s) before initiating any type of donation. This will ensure that you receive professional advice that is tailored to your personal financial and tax situation.
Please find listed below some important information regarding your donation.
Fair Market Value
The fair market value of your securities is based on the closing market price on the day that they are received in The Ottawa Hospital Foundation’s RBC Investor Services account. You will receive a tax receipt based on the fair market value of the securities.
Capital Gains Tax Eliminated on Donations of Appreciated Securities
On May 2, 2006, the federal government eliminated the capital gains tax on donations of publicly listed securities to public charities. Therefore, you will not pay any income tax on the capital gain that is triggered by your donation to The Ottawa Hospital Foundation. In contrast, if the securities are sold and the cash is then donated to the Foundation, 50% of the capital gain is taxable.
How to Transfer the Securities
It is The Ottawa Hospital Foundation’s preference for you to make a donation of securities via electronic transfer. This is often more convenient for the donor and also provides a clean paper trail endorsed by Canada Revenue Agency.
How to Proceed
1. Contact Heather McLean, VP, Development and Corporate Philanthropy at the Foundation, and let her know of your intent to make such a donation. Heather can be reached at (613) 798-5555 extension 13034 or at email@example.com
Please advise Heather of the following:
- The name, number, type (i.e. common or preferred) and CUSIP of securities you wish to donate;
- The approximate value of the securities;
- The date you wish to make your donation;
- How you like to designate your donation (i.e. specific campus and/or dept);
- The name and contact information of your financial advisor or broker;
- Any other relevant information concerning your donation.
2. Contact your financial advisor or broker. In most cases, you will need to provide written authorization stating your intent to transfer securities from your account to the Foundation’s RBC Investor Services account. A Direction and Notification of Gift Securities Document is included here or may be available from your broker. Your advisor or broker will require the following account details:
The Ottawa Hospital Foundation’s RBC Investor Services Account Information:
Account Number: 162176001
CUID Number: RTRA
If you are donating US securities, we recommend that you transfer them to our US account:
US Account Number: 162176002
DTC: 901for agent #298307
In order for your transfer to be completed efficiently, we must notify our representative at RBC Investor Services of the pending transfer. Would you please ensure that a copy of your authorization or details of the transfer are emailed to Heather Mclean at firstname.lastname@example.org or sent to her by fax to (613) 761-5014.
This will initiate a book base transfer the day of the fax, or whatever date is most suitable for you. Again, the receipt will be based on the value of the securities as at the close of business on the day they are received by the Foundation.
It is not necessary for your advisor to re-register the share certificates for gifting purposes – retain shares in book base form with the financial institution.
3. Once the transfer is complete, The Ottawa Hospital Foundation will deliver your official income tax receipt, as well as our grateful thanks.
Thank You for Your Support!