Gift of Securities (Individual) Sheet

Gifts of Publicly Traded Securities

Donating publicly traded securities (stocks, bonds and mutual funds) is the most taxefficient 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%.

Instead of selling the securities, you transfer them to Abundance Canada as a gift in-kind.

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

ActionSell 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%)
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, you do not realize a taxable capital gain, saving you $8,000 in tax payable. The $50,000 donation receipt can then be used to off-set other income tax payable.

Tax Planning Tips

  • Eliminate the taxable capital gain on the donated securities.
  • Receive a donation receipt based on the fair market value of the securities on the day you initiate the transfer to Abundance Canada.
  • Use donation receipt to off-set other income tax payable.

Next Steps

Established in 1974, Abundance Canada envisions a world where everyone lives generously, because we believe generosity changes everything™. To learn more about creating your Generosity Plan, contact Abundance Canada at 1.800.772.3257 to speak with a gift planning consultant. All consultations are confidential, with no obligations.