Donations of Publicly-Traded Securities

What is a publicly-listed or publicly-traded security?

Your donation must be of securities traded on a public market in Canada or the United States. This includes stocks, bonds and mutual funds, but excludes shares in a private corporation and stock options.

How do I save more and give more by donating securities?

Let’s say you purchased common shares in ABC Company for a cost of $1,000.

  • If the current market value of the shares has increased to $5,000, you would have a capital gain of $4,000.
  • If you sell these shares and donate the cash, tax would be payable on the capital gain.
  • Instead, by donating the shares, you get a tax receipt for the $5,000 and pay no capital gains tax.
  • As a result, you now have a tax credit of $2,300, which is $920 more than if you had sold the shares and donated the proceeds. 

Donating shares is more tax-efficient than donating cash.

Download the Securities Transfer form here