Donating securities is an easy way to contribute to Canada Without Poverty’s important work across Canada. Securities donations include donations of stocks and mutual funds.
The Canada Revenue Agency does not apply capital gains tax on donations of publicly traded securities. Capitals gains are the increase in the value of your securities over the price you paid at purchase.
When you sell your shares for cash, you’re responsible for the tax due on the gain, even if you plan to donate the proceeds from the sale. If you pay the tax out of those proceeds, there’s less money left to donate. Your charity receives a smaller donation and you have a smaller donation to claim for your charitable tax credit at the end of the year.
But when you donate your securities directly through CanadaHelps, those capital gains aren’t subject to tax. This means your charity receives a larger gift, and you’ll benefit from a tax receipt for the full value of your eligible securities or mutual funds.
For more information and to set up your securities donation, click on the link below.