Immediate Gifts: Stocks or Other Assets

Donating stocks and securities is a tax-smart idea for donors. When you transfer your shares to International Teams directly, you will receive a tax receipt for the appreciated value of your stock or security without incurring any capital gains tax. See chart below.

Eligible securities include shares (stock), debit obligations (bonds), and units from a mutual fund trust (mutual funds).

Gifts of employee stock options receive favorable tax treatment as of May 2, 2006. The inclusion of the employee benefit (income) for tax purposes is reduced to zero if the shares are donated within 30 days of their acquisition. This change is designed to parallel the capital gains inclusion rate for donations of stocks or other securities.

Transfer Shares Directly to ITCA (International Teams Canada) Sell Shares & Give Cash Proceeds to ITCA Cost of stock or security $20,000 $20,000 Current market value of stock or security $100,000 $100,000 Capital gain (what you made on it to date) $80,000 $80,000 Taxable gain (what you pay tax on - 50%) $0 $40,000 Tax payable on capital gain at 50% assumed tax rate $0 $20,000 Tax Credit on $100,000 donation $50,000 $50,000 Net Tax Savings after transaction $50,000 $30,000

What are the benefits of making a gift of stocks or securities?

• As of May 2, 2006, capital gains tax on publicly listed stocks and securities are exempt when you donate your shares to International Teams rather than selling your shares and giving the proceeds.

• The value of your tax receipt is based on the closing market price of your shares or security on the day International Teams takes legal receipt of your stock into our brokerage account with CIBC Wood Gundy.

• Give up to 75% of your net income annually and carry forward any unused donations for 5 years.

All gifts to International Teams are received and managed under the oversight of the Board of Directors. Gifts of cash and cheques are managed through Donor Services. Gifts of securities (stocks and bonds) are managed through the Development Office, and gifts in kind or real-estate are managed through the Finance Office. The information provided on this page is general in nature, does not constitute legal or financial advice, and should not be relied upon as a substitute for professional advice. We strongly encourage you to seek professional legal, estate planning and/or financial planning advice before proceeding.

Please contact the Development Office of International Teams to coordinate any gift of securities at 1-800-465-7601, 1-519-669-8844, ext 233.

For detailed instructions on how to make gifts of securities, please read more here: Gift of Securities or Mutual Fund Transfer Instructions.