For many people, charitable giving is about making a difference in the lives of those in need. People who donate are passionate about the causes they support and have an altruistic desire to amplify their generosity. However, the savvy donor also knows the amazing benefits of donating publicly traded securities.
If you own publicly traded securities (stocks, bonds or mutual funds) that have increased in value since you purchased them, and you donate them in-kind to charity, you will realize more tax savings than you would with a cash gift.
Typically, people sell the securities and donate the cash proceeds. The disadvantage of this is that 50% of the capital gain will be taxable income. However, if you donate the securities in-kind, the taxable capital gain is avoided, and you receive a charitable receipt for the market value of the securities.
Charitable giving via gifts of publicly traded securities is a wonderful way to support your favourite charities, while enjoying additional tax savings over donating cash.
Abundance Canada, a public foundation registered with the CRA, has extensive knowledge and experience, especially dealing with complex charitable giving. Over 50% of their business is facilitating in-kind donations of publicly traded securities.