I have a donor that would like to donate securities to our charity.
Donors can donate securities to their favourite charities through CanadaHelps, either via the CanadaHelps.org website or via your charity’s customized donation form.
When a donor is ready to donate their securities, you can send people directly to your website through the custom donation form for securities or via canadahelps.org to initiate and complete their donation.
Here’s what happens when donors choose to donate their securities to you through CanadaHelps:
1. Donors will be asked to provide some basic information. The online tool from CanadaHelps will automatically produce a “Letter of Direction”. The donor signs the letter of direction and sends it to their broker/financial institution.
2. The broker/financial institution must act on that direction and transfer the requested number of shares from the donor’s investment account to CanadaHelps.
3. CanadaHelps facilitates the sale of the securities; arranges the pledge documentation and materials for donors; issues the tax receipt; and transfers the proceeds to the charity’s bank account (if they are registered with CanadaHelps). CanadaHelps does not hold on to the securities and does not pass them on to charities. CanadaHelps charges a small, non-commercial fee to manage the transaction. The donor’s broker may or may not charge a fee as well.
4. CanadaHelps sends the donor a charitable tax receipt for the full market value of the security based on the close price on the day when the transfer of securities goes into CanadaHelps’ account. Due to fees and market fluctuations, the amount transferred to the charity will likely differ from the full market value that was assessed when the securities were first transferred.
Click here to learn more about how you can accept donations of securities at your charity through CanadaHelps.
Please note: Due to how involved a security donation is, there is a minimum value to donate securities. For securities that are already in a digital format, and securities can easily be transferred-in-kind, the minimum value is $200. For physical securities that need to be converted to digital, the minimum value is $2,000.