GIFT OF PUBLICLY TRADED SECURITIES
Discover the Tremendous Benefits
More and more people are discovering the tremendous benefits of donating publicly traded securities to support their favourite charity. By donating appreciated stocks, bonds, mutual funds or stock options, you pay no tax on the capital gain, receive a donation receipt for the fair market value of the securities, which may reduce your income tax payable.
The process is simple and quick!
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 of donating securities to charity
|Sell Securities and Donate Cash||Donate Securities as Gift In-Kind|
|Selling Price - Donation to Charity||$50,000||$50,000|
|Adjusted Cost Base||($10,000)||($10,000)|
|Taxable Capital Gain||$20,000 (50%)||$0 (0%)|
|Marginal Tax Rate (example)||40%||40%|
In this example, when the securities are donated directly to the charity as a gift in-kind, the donor does not realize a taxable capital gain, 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 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 2018, Abundance Canada processed over $13.6 million in donations of publicly traded securities.
Abundance Canada is a public foundation registered with the Canada Revenue Agency (CRA). Abundance Canada is authorized to receive charitable donations, issue official donation receipts and distribute funds to registered charities in Canada through a donor-advised model we administer.
Charity Registration No: 12925-3308-RR0001.