Donate Shares FAQ’s
Donate Shares - FAQ'sTo ensure the efficient transfer of your gift of investment property to the Salaam Ministries Inc Direct Trading Account at Jory Capital Inc, please observe the following:
- Ensure that the Authorization To Transfer form has clear and complete information and that the authorization is signed and dated. When your instruction has been delivered to your institution's investment representative, fax a copy together with a copy of your Designation Instructions to Salaam Ministries at 780-421-9292. For assistance to complete this transfer form please contact us at (1-877-421-9090).
- Be sure that the delivering institution’s representative understands that it is a transfer of securities without cashing them in. Only if the gift of securities is transferred in-kind to Salaam Ministries, for Salaam Ministries to cash at Jory Capital Inc, are the tax benefits for appreciated securities available.
- What is an in-kind gift?
- How long will my transfer take?
- What types of investment products are eligible for the favourable tax treatment?
- What types of investment products are NOT eligible for the favourable tax treatment?
- What if the transfer fails to be processed?
- How much will it cost to transfer my account?
- When is the value of the transferred securities for gift purposes determined?
- How do I report this on my tax return to get the favourable tax treatment?
An in-kind gift is a transfer of property other than cash. If you hold certain types of investment products, they may be transferred as a gift to a charity. You may transfer your gift to Salaam Ministries with a request that the proceeds of the sale of the in-kind gift be sent to one or more charities of your choice. You may do this using the form Authorization to Transfer.
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 this transfer form by the delivering institution.
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 are eligible. Such investments should be transferable within five business days after the delivery of your Authorization to Transfer to Jory Capital Inc.
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 GIC's must be transferred IN CASH upon their maturity. Please check the terms and conditions with the institution which 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, it may be returned to the delivering institution unprocessed. After the reason for the rejection is resolved, the transfer process may begin again.
When is the value of the transferred securities for gift 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 Salaam Ministries 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 Salaam Ministries brokerage account.
T1170 (07) "Capital Gains on Gifts of Certain Capital Property"
If you have any questions, please contact Salaam Ministries.