Gift of Securities (Corporation)

The Most Tax-Efficient Way to Make Charitable Donations

Donating publicly traded securities (stocks, bonds and mutual funds) is the most tax-efficient way to make charitable donations. When publicly traded securities are donated “in-kind” to a Canadian charity like Abundance Canada, the capital gains inclusion rate drops from 50% to 0%.

If you donate the securities from within your corporation, you will realize an additional benefit; the tax-free portion of the capital gain is added to your corporation’s Capital Dividend Account (CDA).

When a corporation donates publicly traded securities, the entire capital gain is tax-free, so 100% of the capital gain is added to the CDA. A positive balance in the CDA can be paid out to shareholders as a tax-free dividend.

 

Sell securities and donate cashDonate 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%)
Increase in the CDA$20,000 (50%)$40,000 (100%)

Abundance Canada makes donating securities easy

Abundance Canada makes it easy to process gifts of publicly traded securities. Our team of Gift Planning Consultants will work with you or your Professional Advisor to explain our process and work out the details.

In 2019, Abundance Canada processed over $30.45 million in donations of publicly traded securities.

For more information, review our information sheet on a Gift of Publicly Traded Securities by a Corporation.

To initiate an in-kind gift of securities please download and complete the applicable form.

Stocks and Bonds

Mutual Funds 

Contact us or call 1.800.772.3257 to speak with a gift planning consultant today about how you can donate a gift of publicly traded securities to your favourite causes.