Donating Securities: 

With proper planning, you'll realize even more tax savings than you would with a gift of cash. Not only can the charity issue an official donation receipt (that can be claimed to save taxes) for the value of the publicly traded shares or mutual funds you transfer, you won't have to pay tax on any capital gains realized.

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.

To ensure your gift qualifies for a 2023 tax receipt, complete your mutual funds donation before December 8th.  All other securities donations before December 15th.