If you hold publicly traded shares with a big unrealized gain, donating the shares “in-kind” (without selling) can be one of the most tax-efficient ways to give in Canada.
When you donate eligible publicly listed securities directly to a registered charity (or other qualified donee), the capital gain can be subject to a zero inclusion rate, meaning no taxable capital gain is included in your income, yet you can still receive an official donation receipt based on the shares’ fair market value at the time of the gift.
This post explains how the strategy works, the common pitfalls (selling first, getting an “advantage,” donation limits), and how to coordinate gifts of shares with your estate plan, including how donation credits may be used on the terminal T1 and by an estate in the years following death.
In this in-depth blog post we cover:
What qualifies as an eligible gift of securities
Why donating shares can beat donating cash
Step-by-step: how to donate shares in kind
How donation credits work (limits and carryforwards)
Estate planning: using donation credits on the terminal T1 and by the estate
With examples…and much more!
Let’s dive in!
Power to you,
Think Team 🙏
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