As a rule, an organization may, within five years after receiving a gift of a non-qualifying security, issue an official receipt as of the moment:

• it disposes of the security for consideration that is not another non-qualifying security; or
• the security ceases to be a non-qualifying security.

A donor who makes a monetary gift or a gift in kind to an organization is deemed to have made a gift of a non-qualifying security if, as part of a series of transactions:

• a particular person holds a non-qualifying security of the donor;
• the organization acquires, directly or indirectly, a non-qualifying security of the donor or of the particular person.

In this case, the tax effects of the gift for the donor are the following:

• For the year of the gift, the deemed value of the gift for the purposes of calculating the tax credit for donations and gifts, or the deduction for donations and gifts (in the case of corporations), is reduced and corresponds to the actual value of the gift minus the value of the non-qualifying security acquired by the organization.
• For the taxation year that includes the year in which the organization disposes of the non-qualifying security, and provided that the disposition occurs within five years of the gift, the organization is deemed to have made a gift of a non-qualifying security for a value equal to the lesser of any consideration (other than a non-qualifying security) received by the donee for the disposition and the acquisition cost of the security for the organization.