22 Jun A unique way to give back
We have become aware of a fantastic service to deal with unmarketable parcels of shares called ‘ShareGift Australia’.
What is an unmarketable parcel of shares?
A very small parcel of shares which you may hold in a company which may come about due to:
- A Dividend Reinvestment Plan which allocates you shares after you had sold your core holding.
- A share split or de-merger which allocates you a small parcel of shares in one or more companies.
These shares are not only cumbersome to administer, but they may not even be worth selling once brokerage costs are taken into account.
How does ShareGift Australia work?
ShareGift Australia (established by Goldman Sachs, NAB and JB Were) provide a service to sell any size parcel of shares free of brokerage and transaction costs, with 100% of the proceeds donated to a charity which you may nominate.
The table below illustrates the advantages of converting $200 of shares to charitable donations through ShareGift Australia versus selling them conventionally and then donating the funds:
| No Donation | Donation without ShareGift Australia |
Donation through ShareGift Australia |
|
| Value of Shares | 200 | 200 | 200 |
| Brokerage Fee | 30-125 | 30-125 | 0 |
| Tax Refund* (assuming highest marginal tax rate, plus Medicare levy) | 0 | 35-79 | 93 |
| Personal Benefit to you | 75-170 | 35-79 | 93 |
| Benefit to Charity | 0 | 75-170 | 200 |
* Donations over $2 are tax deductible
What is the Process?
Contact Adapt Wealth Management to assist or if you would like to do it yourself.
- Print out and complete the ShareGift donation form which can be obtained from www.sharegiftaustralia.org.au
- Post the form to ShareGift Australia, Level 15, 101 Collins Street, MELBOURNE VIC 3000.
- ShareGift will arrange for the shares to be sold through one of their participating brokers free of brokerage.
- You will receive a separate letter from ShareGift Australia with details of the share sale, which you can keep as a receipt for tax purposes..
Reuben Zelwer
B Acc, FFIN, CFP, SMSF Specialist Adviser™ Director |
About Reuben Zelwer
Reuben Zelwer established Adapt Wealth Management in 2011 to help time poor clients achieve financial freedom. For over 15 years, Reuben has helped professionals, executives, business owner and those approaching retirement make the most of their circumstances by making good financial decisions. Reuben’s professional practice is complemented by substantial voluntary work, which has included setting up financial literacy and savings programs in the local community. |