Gifts of Stock & Securities
Publicly-traded stock, bonds and securities can be donated directly to Wellspring. As a donor, you will receive a tax receipt for the full appreciated value of your gift based on the closing trading price on the day it is received by Wellspring, and you will not be subject to any capital gains tax on the donated portion.
Benefits of Making a Gift of Securities
- Donations of appreciated publicly-listed securities to Wellspring are exempt from capital gains tax.
- Your charitable donation can be claimed for up to 75% of your net income and any unused donation amount can be carried forward over the next five years.
- You can transfer your shares electronically from your account into Wellspring's account, or endorse your security certificate and hand deliver it or send it through registered mail to Wellspring.
- Receipt value is determined based on the closing price on the day the security is received by Wellspring.
In the following scenario, you could donate $25,000 at a cost of only $11,200.
Say you were to purchase $15,000 worth of stocks that then went up in value to $25,000. If you were to donate the $25,000 in stocks, not only would you receive a tax receipt in this amount, you would not have to pay the capital gains tax that you would otherwise owe ($2,300). Therefore, the fair market value of the stock ($25,000), minus the donation tax credit ($11,500 based on the top marginal tax rate of 46%) minus the capital gains tax exemption ($2,300) means that your donation of $25,000 would only cost you $11,200.
Stock Transfer Instruction
Thank you for considering a Gift of Securities to Wellspring. To ensure smooth and efficient handling of your transaction, please contact Eva Thurlow at (416) 961-1928 ext. 230 before you transfer your shares.
In order to complete the trade, please:
- Call Wellspring at (416) 961-1928 ext. 230 for account transfer information.
- Download the Share Transfer Form and complete all sections of the form, including your contact information and the share information
- Fax the completed form to (416) 961-3721 Attn: Eva Thurlow (call for email instructions).
- Instruct your broker to initiate the trade and transfer shares to Wellspring's account.
- The value of the donation receipt will be based on the closing price of the security, on the day the transfer is received by Wellspring.