Donating appreciated stocks or mutual funds is the most tax-effective way to make an outright gift during your life or as part of a legacy gift. When an individual sells an appreciated stock or mutual fund they are required to pay tax on 50 percent of the capital gain. However, the federal budget of May 2006 eliminated capital gains on gifts of publicly traded securities to public charities. Publicly traded securities are all securities listed on Canadian and major international exchanges.
Benefits of Making a Gift of Securities to the Canucks Autism Network
- A charitable tax receipt will be issued for the fair market value of the securities
- No capital gains tax owing if gifted to a registered Canadian charity
- Opportunity to create a lasting charitable legacy through estate planning
- Excess credit may be carried forward for up to five years if your donation exceeds the amount eligible for a tax credit in the year your donation is made