Chart for handling gifts of securities

Step by Step Chart - Gifts of Publicly Listed Securities Approved by Date Completed Notes

Develop policies regarding acceptance of publicly listed securities, including how you will value these gifts for tax receipting purposes, and whether you will immediately sell or retain the securities when received.

Board of Directors

Establish a relationship with a reputable broker or portfolio advisor.

Understand how gifts of publicly traded securities are processed (e.g. timing re electronic transfer of shares).

Open a brokerage account for your organization to receive these gifts.

Board of Directors resolution

You may need to obtain board resolution to open an account.

Provide your advisor with a standing letter for your file regarding the handling of securities transferred into your account.

For instance, orders to sell immediately, or hold until the advisor receives your instructions.

Provide a form for an instruction letter to be used by the donor. It will instruct the donor's broker to electronically transfer securities from his/her account to your organization's brokerage account. Indicate any designation for the gift.

Donor to sign & transmit to their broker with copy to you.

Give this to the donor to sign and transmit to their advisor. Ask for a copy for your files. Ensure the donor specifies a date by which the transfer should take place.

File policies, trading resolutions, procedures and other important documents in the Publicly Traded Securities" section of your readiness binder.

Trading resolutions are board resolutions to open account and/or set out limit of advisor's authority.

Ask your broker to notify you in writing when securities have been received in your organization's brokerage account and to confirm the number of shares and the price.

Confirm your organization's policy on the disposition of shares.

Track the transfer and if there are delays, follow-up with your advisor and the donor.

Issue an income tax receipt to the donor, as per your valuation policies. (Your broker should confirm the value of the shares at the date of transfer

Also put information on the receipt identifying this as a gift of shares, name of company, quantity of shares, the price, and the date the shares were received in your organization's brokerage account.

Review brokerage trading statements for accuracy as soon as you receive them from your organization's broker. Retain all trading statements for your records.

Don't hesitate to contact your broker to clarify any questions about the statement.

Year end: ensure you know when brokerage offices are open, and the last eligible trading date before year end. Ask your broker. Ensure they will be available to handle transactions during this period. Warn donors about tax receipting issues at year end.

Most gifts are made at year end! Mutual funds often take longer to transfer than company shares. Factor this into your planning, especially as you approach year end.

Follow acknowledgement procedures in a timely fashion.

Last modified: Tuesday, 6 November 2018, 4:48 PM