Donations of Stocks and Securities

Gifts of Securities

Gifts of securities are a cost-effective opportunity to transform an asset into immediate and significant support for IFCJ Canada’s programs. By donating appreciated stocks, mutual funds, stock options or flow through shares, donors pay no tax on the capital gains, receive a tax receipt for the fair market value of the securities, and reduce their taxes.

The Advantage of Donating Securities

A gift of appreciated securities is a worthwhile alternative to a cash gift. Flexible choices allow you to decide how you want to give, and the elimination of capital gains tax on gifts of appreciated securities provides you with a substantial tax incentive for donating stock.

The Benefits of Donating Securities Include:

  • Satisfaction of seeing your gift put to good use today
  • A charitable tax receipt
  • No capital gains tax paid

Your Choices When Giving Securities Include:

  • Stocks, Mutual Funds
  • Bonds, segregated funds
  • Employee stock options
  • Flow-through shares

Scenario: Gift of Appreciated Securities

Sell Shares and Donate CashDonate Shares Directly
Current value of shares$50,000$50,000
Amount paid for shares$10,000$10,000
Capital gains$40,000
($50,000 current value – $10,000 purchase price)		$40,000
($50,000 current value – $10,000 purchase price)
Tax on capital gains$10,000
($40,000 capital gains × 50% taxable gains × 50%**)		$0
(no capital gains tax payable on donated shares)
Tax credit$25,000
($50,000 donation × 50%**)		$25,000
($50,000 donation × 50%**)
Net tax savings from donation$15,000
($25,000 – $10,000 tax on capital gains)		$25,000
Total tax savings from
donation		$15,000
($25,000 tax credit – $10,000 tax on capital gains)		$35,000
($25,000 tax credit + $10,000 in tax on gain not paid)
Net cost of gift$35,000
($50,000 gift – $15,000 total tax savings)		$15,000
($50,000 gift – $35,000 total tax savings)
*Scenario for illustrative purposes only.
**Assumes gift made in Ontario at a marginal tax rate of 50%.

Three Simple Steps

Donating a gift of securities is simple:

  1. Determine with your financial advisor which investments will make the most philanthropic and financial impact.
  2. Instruct your broker to transfer your securities directly to IFCJ Canada and complete our transfer form available here
  3. Contact us and let us know you have made your gift.

Contact us at 1-888-988-4325 for details.