A gift of securities or shares are one the most efficient way to make a charitable donation. When donating securities or shares capital gains tax does not apply, allowing you to give more and minimize tax implications.
A gift of securities can include:
- Shares, bonds, warrants and options, if listed on a prescribed exchange
- Widely held mutual fund shares/units and segregated fund units
Gifts of Securities Benefits
Donating securities is one way you can help to change lives and shape our community’s future. Changes to federal tax regulations make this type of giving more beneficial than ever.
What gifts are eligible and why give securities?
- You can donate stocks, mutual funds or other types of marketable securities.
- There is no capital gains tax, so it is the most tax effective way to give.
- Donors receive a tax receipt for the full value of the share, making this more efficient than selling the securities and donating the cash proceeds.
- You can leave securities to United Way in your will, thereby reducing the tax burden on your estate.
- You can also leave some or all the funds in your Registered Retirement Savings Plan (RRSP) or Registered Retirement Income Fund (RRIF) to United Way. You save on taxes!
- Give the gift of life insurance by naming United Way as a beneficiary of a policy you own, or you can buy a new policy to donate.
An example of the financial benefit of donating securities: | ||
| Sell security and donate cash | Donate security |
Market value of security | $10,000, | $10,000 |
Cost base | $5,000 | $5,000 |
Capital gain | $5,000 | $5,000 |
Taxable capital gain (50%) | $2,500 | $0 |
Tax due at gain on marginal rate (43%) | $1,085 | $0 |
Tax receipt for gift | $8,915 | $10,000 |
Total tax credit* | $3,869 | $4,340 |
Net tax savings | $2,784 | $4,340 |
*Example uses Ontario federal and provincial combined tax rate. These figures are for illustration purposes only. Please note that recent changes in legislation may affect how this applies to you.
To learn more about donating securities or shares of a mutual fund please contact:
Finance Team
United Way WrC
519-888-6100 | kconway@uwaywrc.ca
Funded Partners
At United Way we fund a network of community partners helping people meet their basic needs, access mental health supports, and reduce social isolation.