Frequently Asked Questions (FAQ)
How long will my transfer take?
Please note that the time required to transfer different securities varies. Under current IDA regulations, this type of transfer may take between 10 and 25 business days from the time of receipt of the transfer form by the delivering institution.
WHAT’S THE PROCESS?
- Register for a new account from the menu to the right. You will be asked to provide some basic information, a valid email address, and then set up your own personal username and password.
If you already have an account, login and skip to step 3 below.
- Activate your new account by clicking on the link in the email sent to the address you provided.
- After logging into your account, again using the menu to the right, fill in the details about your gift. This will automatically generate two forms:
- Authorization to Transfer Publicly Traded Securities to CCCC, and
- Request for Charity Beneficiary.
- Mail signed copies of both forms to CCCC or scan and email them to firstname.lastname@example.org
- Provide the Authorization form to your broker. It has all the details and directions needed for your broker to transfer your securities to us.
- Retain the Request for Charity Beneficiary form for your records. It contains the directions you provided to CCCC as to which charities you want your gift distributed to.
What types of investment products are eligible for the favourable tax treatment?
- Publicly Traded Common or Preferred Shares, Transferable Bonds/Debentures, and Units of Income or Royalty Trusts. Such investments should be transferable within five business days after the delivery of your Authorization to Transfer to the delivering institution.
- Mutual Funds and Segregated Funds. Currently, mutual fund products take longer to fully transfer and may result in a possible delay due to the requirement of re-registering the mutual fund at the Fund Companies. On average, mutual funds require 10 to 25 business days to transfer from the time the mutual fund power of attorney is received by the receiving institution.
What types of investment products are NOT eligible for the favourable tax treatment?
- Guaranteed Investment Certificates & Term Deposits. Generally, a Guaranteed Investment Certificate (GIC) is not transferable in kind (as is) prior to the maturity date. Most GICs must be transferred in cash upon their maturity. Please check the terms and conditions with the institution that currently holds the investment.
- Other Investment Products. There are many other investment products which may be non-transferable, non-redeemable, or subject to other delays. Some of these products include Mortgages, Foreign Securities, Non-transferable Bonds (minimum denomination requirements). Shares of private corporations are not transferable.
What if the transfer fails to be processed?
If for any reason your transfer has been rejected by the receiving institution, they may return the transfer to the delivering institution unprocessed. After the reason for the rejection is resolved, the transfer process may begin again.
How much will it cost to transfer my eligible investments?
Most Institutions charge a transfer out fee along with brokerage fees. The amount of these may vary. CCCC will not charge a transfer fee; however, a 1% administration fee will be applied as well as $25 per cheque issued (minimum $500 fee). If the distribution includes a CCCC member organization, the minimum fee will be decreased to $275. This administration fee is deducted based on the net settlement amount before the donation is sent to the charity.
When is the value of the transferred securities for tax receipt purposes determined?
The fair market value will be the proceeds of the sale prior to the cost of commission and brokerage fees IF the securities are sold on the date they are received into the CCCC brokerage account. If the securities are not sold on the date they are received, the fair market value will be the closing market price on the date they are received in the CCCC brokerage account. This fair market value is the amount that will be shown on the official receipt for tax purposes CCCC will issue to you.
Securities are normally sold the same day by CCCC when received and accessible for sale. Delays beyond CCCC’s control (e.g. brokerage firm processing time or settlement dates) may impact on the sale date. Please note that the amount established by law to determine the official tax receipt amount will inevitably vary from the cash sale amount.
How do I report this on my tax return to get the favourable tax treatment?
The following form needs to be completed:
Download a sample form for a hypothetical donor who donated $11,000 of eligible securities which had an original cost of $5,000, creating a $6,000 capital gain.