A Tax-Efficient Way to Give Now to Vitally Needed Ministries
If you sell publicly traded securities privately, you are taxed on 50% of the capital gains. However, if you gift the securities directly to charity, you pay no tax on the capital gains while also receiving a donation tax receipt for the full market value of the securities. This means that the gifting of securities which have appreciated in value is a much more tax-efficient way to give to the church than selling the securities privately and then donating the cash.
Giving a gift of securities to the PCC is simple. At your direction, your broker will electronically transfer your securities to The Presbyterian Church in Canada’s brokerage. The PCC’s broker then sells the stock very soon after receiving the transfer. Based on the fair market value of the stock on the day it was donated, the PCC issues you a charitable tax receipt. The PCC then directs the proceeds of the sale (reflecting any change in value from date of sale minus the broker fees) to whatever PCC congregation, program, or ministry you wish.
You may also wish to consider donating listed securities in your will. Because capital gains will not be taxed, your estate may realize considerable tax savings from your gift while preserving capital for your beneficiaries.
Benefits of Gifting Securities
Satisfaction – You have the satisfaction of knowing your legacy gift will support transformational mission and ministry.
Flexibility – The church can benefit from your gift now or in the future.
Cost‐Effective – You make a gift without significantly depleting your current bank account.
- Control – You choose the area of work you would like your gift to support.
- Tax Planning – You or your estate receive a tax receipt for the full fair market value of your gift and you or your estate saves paying capital gains tax on any gift of securities.
Gifts of publicly traded securities (stocks, bonds and mutual funds) are a simple and efficient way to make a substantial gift to the church for its use now, while at the same time decreasing our out-of-pocket expense.
You can use The Presbyterian Church in Canada’s stockbroker
If your congregation does not have its own stockbroker, you can use The Presbyterian Church in Canada’s stockbroker to handle the transaction. You will receive a charitable receipt from The Presbyterian Church in Canada for the fair market value of the securities as of the date the church receives the securities. It is the policy of the church to sell the securities as soon as possible. The proceeds from the sale (less any stock broker fees) are then immediately directed to the ministries you want to support (e.g. your home congregation, PWS&D, a church camp, Presbyterians Sharing, etc.). The PCC does not charge any fees for offering this service.
Note: Giving securities can take time. It may take 4-7 weeks from initiating the transfer, to a PCC congregation receiving the gift. (Some securities take longer to process.) To receive a year-end tax receipt, the securities must be in the PCC stock account on or before Dec 31. However, if you are giving to a congregation and want the congregation to receive the cheque before Dec 31, the securities should be in the PCC stock account by Dec 1. Most often, for securities donated in December, the congregation will receive the cheque in January.
When your stockbroker holds your securities…
Simply instruct your stockbroker to transfer electronically the securities you wish to donate to The Presbyterian Church in Canada’s brokerage account at Scotia McLeod. The Planned Giving oﬃce has simple transfer forms and guidelines to make the procedure as easy as possible.
When you hold the securities in certificate form…
This is a more complicated process than the electronic transfer of securities. You need to send the actual stock or bond certiﬁcate/s to the Presbyterian Church in Canada. with a signed Power of Attorney form, along with a copy of your driver’s license or birth certiﬁcate. If you hold more than one stock certiﬁcate, a signed Power of Attorney has to accompany each stock certiﬁcate (we advise you to use registered mail or courier to track your documents). The PCC will then send to the stockbroker with the appropriate paperwork to cash the securities. The tax receipt will be based on the market value of the securities on the day the paperwork is signed giving PCC ownership of the securities.
Note: Please inform the Planned Giving oﬃce of your intent so that we can ensure that you receive the proper tax receipt and that your gift goes to the ministry you have designated as quickly as possible.
Frequently Asked Questions
No. It is the policy of The Presbyterian Church in Canada to sell securities as soon as they are in the hands of our stockbroker. This policy facilitates the transfer of the proceeds of the sale of the securities into the hands of your chosen beneficiaries as quickly as possible.
The tax receipt is based on the market value of your securities on the day they are received by the church. Because the securities are sold on a later day than the date of receipt, they may fluctuate in value. Sometimes the sale price may be higher; sometimes the sale price may be lower. There is also a brokerage fee for selling the securities that is subtracted from the total sales price.
Yes, you can identify various ministries including your congregation, but the beneficiaries must be ministries within The Presbyterian Church in Canada.
“And God is able to bless you abundantly, so that in all things at all times, having all that you need, you will abound in every good work.”
2nd Corinthians 9:8
Mrs. Marin wanted to donate money for a clean water project she heard about from Presbyterian World Service & Development. After talking with the Planned Giving office, she learned about the tax efficiency of donating public securities. She had some CIBC stock that had appreciated in value over many years. She sent a transfer form to her broker, instructing him to transfer a portion of her holdings to The PCC broker. The proceeds from the sale were directed to the project, and she received a tax receipt for the full market value of the stock. Mrs. Marin’s CIBC stock is now providing fresh drinking water for a village in Malawi! She is planning on using her tax savings to make an additional donation to the capital campaign in her congregation.
This form is for gifts of publicly traded securities.
Download and complete this printable form and forward copies to your broker, who will initiate the transfer.
This form is for estate gifts of publicly traded securities. Download and complete this form and forward copies to your broker, who will initiate the transfer and to the PCC to issue the receipt and ensure proper designation of the gift.
This online form is for gifts of publicly traded securities from individuals or estates. Upon submission of the form, a copy will be sent to you by email for your records and to the PCC to ensure proper designation of the gift and to issue the tax receipt. You must forward your copy (by email/fax/mail) to your broker, who will initiate the transfer.
Webinar: Many Ways to Give
This webinar explores ways of opening various giving doors and includes practical tools offered by the PCC. It looks at the different ways people give, including the different tax benefits, and talks about how these gifts can enhance the ministry of the church. […]
For More Information
The Stewardship and Planned Giving staff are available to help you turn your philanthropic wishes into reality. To learn how a gift of Publicly Traded Securities or other planned gift can leave a lasting legacy, please contact us
or call the Stewardship & Planned Giving department, 1-800-619-7301.
or mail to: The Presbyterian Church in Canada, 50 Wynford Drive, Toronto, Ontario M3C 1J7.
or use the Contact Stewardship form
Charitable Registration No. 10785 6619 RT0001
The information on this page does not constitute legal or professional advice and should not be substituted for appropriate professional advice. The Presbyterian Church in Canada strongly recommends that you seek professional legal and financial advice to ensure your financial situation and those of your dependents are considered; that your tax situation is reviewed; and that your legacy gift is tailored to your circumstances.