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 both 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, you would need to pay tax on the capital gain.
• Instead, by donating the shares, you get a tax receipt for the $5,000 and pay zero 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. 

This method of giving is more tax-efficient than donating cash.

For assistance planning and directing your gift, please contact:  

Catherine Daugherty
TWS Development Officer
905.881.6137 ext. 322
email Catherine