Discover the Tremendous Benefit of Donating Publicly Listed Securities to Charity
More and more people are discovering the tremendous benefit of donating securities to support their favourite charities. When you donate publicly traded securities such as stocks, bonds and mutual funds, you:
- Pay no capital gains tax.
- Receive a donation receipt for the fair market value of the securities.
- May create tax efficiencies.
A Simple Process for Donating Securities
Instead of selling your securities, you transfer them to Abundance Canada as a gift in-kind. We sell the securities when they arrive in our brokerage account and deposit the net proceeds into a Gifting Fund™.
The cash is available for distribution to the charities you care about, immediately or over time. You can also choose to send your distribution anonymously to the recipient charity.
Abundance Canada will send you a donation receipt for the fair market value of the securities on the day you initiated the gift-in-kind transfer.
Example of the Tax Advantage for a Donation of Securities to Charity
| Sell securities and donate cash | Donate securities as gift in-kind | |
|---|---|---|
| Donation to charity | $50,000 | $50,000 |
| Adjusted Cost Base | ($10,000) | ($10,000) |
| Capital Gain | $40,000 | $40,000 |
| Taxable Capital Gain | $20,000 (50%) | $0 (0%) |
| Marginal Tax Rate (example) | 40% | 40% |
| Tax Payable | $8,000 | $0 |
In this example, when the securities are donated directly to the charity as a gift in-kind, the donor does not realize a capital gain tax, saving the donor $8,000 in tax payable. The $50,000 donation receipt can then be used to off-set other income tax payable.
Abundance Canada makes donating securities easy
Abundance Canada makes it easy to process gifts of publicly traded securities. Our team will work with you or your professional advisor to explain our process and work out the details.
You can view our Fee Model Policy at https://abundance.ca/about/legal/
Download the Gift-In-Kind Donation Form on the Forms page.
Call 1 (800) 772-3257 to speak with a staff member or contact us online to learn more about how you can donate a gift of publicly listed securities to support your favourite causes.