Make a lasting impact with a gift of securities

Sell shares and donate the gross proceeds
 Donate shares directly
Market value of security $10,000 $10,000
Cost base $5,000 $5,000
Capital gains

$5,000

($10,000 current value - $5,000 purchase price)

$5,000

($10,000 current value - $5,000 purchase price)
Tax on capital gains

$1,338

($5,000 capitals gains x 50% taxable gains x 53.5%*)

 $0
Tax credit

$5,040

($10,000 gift x 50.4%*)

$5,040

($10,000 gift x 50.4%)
Net cost of gift 

$6,298

($10,000 gift + $1,338 capital gains - $5,040 tax credit)

$4,960

($10,000 gift - $5,040 tax credit) 
Total tax savings from donation $5,040 $6,378

*Example uses assumes donation made in Ontario using top marginal tax rate 53.5% and top donation credit rate of 50.4%

**Note: New Alternative Minimum Tax (AMT) rules may result in some adjustments to these calculations.

  • Market value of security
  • Cost base
  • Capital gains
  • Tax on capital gains
  • Tax credit
  • Net cost of gift 
  • Total tax savings from donation
  • Sell shares and donate the gross proceeds
  • $10,000
  • $5,000
  • $5,000 ($10,000 current value - $5,000 purchase price)
  • $1,338 ($5,000 capitals gains x 50% taxable gains x 53.5%*)
  • $5,040 ($10,000 gift x 50.4%*)
  • $6,298 ($10,000 gift + $1,338 capital gains - $5,040 tax credit)
  • $5,040
  • Donate shares directly
  • $10,000
  • $5,000
  • $5,000 ($10,000 current value - $5,000 purchase price)
  • $0
  • $5,040 ($10,000 gift x 50.4%)
  • $4,960 ($10,000 gift - $5,040 tax credit) 
  • $6,378