Please note that it is important to consult your Financial Advisor when you are thinking about making an “in kind” donation of securities. After you have done that, contact the Dayspring Planned Giving Committee (PlannedGiving@DayspringChurch.ca) for assistance in making the donation.
“Securities” must be listed on a prescribed public exchange. bonds, mutual fund units, and shares can also be used for “in kind” donations.
This method of “giving” involves transferring the securities to a third-party registered charitable agency such as Canada Helps or the Presbyterian Church in Canada (PCC). Canada Helps or the PCC then cashes out those securities and transfers the cash received, less an administrative fee (see below), to Dayspring’s account.
One advantage of this way of giving is that there is no tax on the investment’s capital gains and the donor receives a charitable donation receipt for the closing price of the investment on the day that it was received by Canada Helps. An advantage of doing this through Canada Helps is that the donor can assign portions of their donation to various charitable organizations.
Donations of securities via the PCC can also be specified as being for the purpose of increasing the investment portfolio of Dayspring Presbyterian Church (which is managed by the PCC).
Canada Helps Fees (as at October 2019)
- 3% for donations less than $10,000
- 5% for donations in the ranger $10,000 – $49,999
- 25% for donations in the range $50,000 – $99,999
- 2% for donations in the range of $100,000+
Note: If the donor cashes out the investment and gives the proceeds to the not-for-profit institution (directly or through Canada Helps) the donor will receive a tax credit for the cash that they contribute – but will be taxed on the investment’s capital gain.
The minimum donation that can be made using this mechanism is $500.
Securities from any country can be accepted but the funds are converted to Canadian dollars when sent to the not-for-profit institution and the tax receipt for the donor is also in Canadian dollars.
To make your “in kind” donation of securities via Canada Helps, click here. This will take you to a form (which is a “Letter of Direction”).
- Fill out the form carefully, making certain that all information is accurate.
- Print the form and sign it by hand OR sign it electronically and download it.
- Send or take the form to your financial institution or investment broker.
- Inform the Church Treasurer that you have made this kind of donation at email@example.com.
Presbyterian Church in Canada Fees (as at November 1, 2019)
|Fee Schedule for a sample private broker||Firm minimum of $175.00||Firm minimum of $175.00||2.75% or firm minimum of $175.00||2.50%||2.25%||1.75%|
|Fee Schedule for Presbyterian Church in Canada||$25 flat||$140.00 flat||$175.00 flat||1.50%||1.25%||1.15%|
These are the current rates as of November 1, 2019. Some products may be subject to different rates. Subject to change without notice. Contact the Stewardship & Planned Giving Department of the Presbyterian Church in Canada (JMacDonald@presbyterian.ca) for current rates.