Give a Gift of Securities

Help Winnipeggers with a gift of listed securities

Canadian tax rules make it advantageous to gift certain publicly
listed securities to charity. The types of securities (“Listed
Securities”) which will benefit from these rules are listed in the
column to the right. The reason for this is that the tax laws
effectively eliminate the tax on capital gains that arise when a
person gifts Listed Securities which are capital property that has
appreciated in value to a charity.

Gifts of the following securities benefit from these rules:

• Shares, debt obligations and rights listed on a designated stock exchange
• Shares of the capital stock of a Canadian public mutual fund corporation
• Units of widely held Canadian mutual fund trusts
• Interests in related segregated fund trusts
• Prescribed debt obligations

Benefits of donating appreciated securities to charity:

• Donation receipt for fair market value of the securities on the date transfer is received
• Transfers can be made at any time, including in your Will • Donor’s capital gains tax on the securities is eliminated
• Charity pays no tax on the sale of the securities

Note that in order to eliminate the entire gain up to the date that the gift is made, the gift provided for in your Will must be made by your “graduated rate estate” (or former graduated rate estate) and be completed no later than three (or five) years following death.

Illustrating Tax Benefits for example, if a donor wishes to make a gift of $10,000 to United Way Winnipeg, the donor could make this gift in cash or by way of a gift of securities. The securities have appreciated in value from the donor’s original cost of $2,000 to their present value of $10,000. The chart illustrates the tax benefits of donating the securities rather than cash.*

*This example illustrates approximate amounts only, and is based on a taxpayer resident in Manitoba, subject to tax at the top marginal rate applicable to income under $200,000, and the current tax rates. The actual tax credit will vary depending on your taxable income and your province of residence. Tax rates are subject to change. Capital gain tax saving is equivalent to the tax payable on the capital gain that would otherwise have been payable had the securities been liquidated by the donor. A higher marginal tax rate applies to income exceeding $200,000, and the federal tax credit has been increased to fully offset federal tax to the extent gifts are made from income over $200,000.

Make a gift of listed securities to United Way Winnipeg, or contact us for assistance.

Gifts of Securities Form

Need help? Contact us. Return completed forms here.

EricaGive a Gift of Securities