What are gifts of securities?

To encourage charitable giving, the Canadian government provides you with a tax credit when you donate to a registered charity, which can be used to reduce your taxes payable.

And, a further tax benefit is provided if you donate certain securities in kind, such as:

  • Shares listed on a designated stock exchange;

  • Stock options;

  • Mutual funds;

  • Exchange Traded Funds (ETFs);

  • Securities in certificate form;

  • Government of Canada or provincial government bonds.

These gifts can be given during your lifetime or after, through your estate.

What are the advantages to donating securities?

When you donate publicly traded securities, in addition to getting a donation tax receipt for the fair market value of the securities donated, any capital gains you have accrued on the donated securities may also be eliminated.

If you plan on donating, have your advisor review your portfolio to determine if there are any securities with large capital gains. There may be even more tax benefits if you donate securities from your corporation. Speak with your qualified tax advisor to determine whether it makes sense for you to donate securities with accrued capital gains.

For more information on gifts of securities, email Toni Andreola, Donor Advisor or call 672 879 2394.