Gifts of Securities

You can make a difference by donating publicly listed shares, regardless of whether they have increased or decreased in value. Thanks to Canada Revenue Agency tax law changes in 2006, Canadians who donate appreciated securities (including stocks, bonds and mutual funds) directly to a registered charity eliminate capital gains tax on the investment.

Benefits to this way of donation include:

  • a tax receipt for the fair market value of the security gift
  • exempt from the capital gains tax that normally applies to the sale of a security


    Donor wishes to make a gift of $10,000

    Fair market value of stock $ 10,000
    Cost base of stock 2,000

    Option 1 - Sell stock and make $10,000 gift from cash proceeds
    Option 2 - Gift stock to charity

      Option 1 Option 2
    Sale/Gift of Stock $ 10,000 $ 10,000
    Capital gain 8,000 8,000
    Taxable gain (50% x $8,000) 4,000 0
    -

    Gift tax credit (45% * 10,000) 4,500 4,500
    Tax on gain (45% * 4,000) (1,800)
    -

    Cost of gift 7,300 5,500
    (Source: http://www.cfc-fcc.ca/pa-eresource/6-gift-options/appreciated-securities.cfm)


Note: Example provided is for general information purposes only, please contact your lawyer or securities representative for further details pertaining to the benefits of donating securities.

If you have any further questions or would like to proceed with a donation of securities, please contact our Senior Director of Development, Bonnie Megley at  780-342-8978 or by e-mail at bonnie.megley@covenanthealth.ca