The gift of publicly marketable securities, bonds, mutual fund units or other similar securities enables you to give to the charity of your choice at a lesser cost than if you donate the proceeds of the sale of your securities.

Donors who wish to make a substantial donation without encroaching on their liquid assets, or who own shares or other securities which have significantly increased in value since their acquisition, will particularly be interested in this philanthropic option.

For example, Peter is interested in the Montreal Insectarium research to save the monarch. He wants to donate $20,000 to Mission Monarch and wonders if he should sell the securities and donate the proceeds to the Space for Life Foundation or donate the securities directly. After a discussion with his financial advisor, he is convinced that it is more advantageous to do the latter.

Donation of securities Sale of securities
Fair market value of securities $20,000 $20,000
Cost of acquiring the securities $8,000 $8,000
Capital gain $12,000 $12,000
Taxable gain $6,000 $6,000
Capital gain exemption – $6,000 $0
Net taxable income $0 $6,000
Income tax to pay (48%) $0 $2,880
Donation receipt $20,000 $20,000
Tax savings (48%) $9,600 $6,720
Net cost of donation $10,400 $13,280