Donating Securities

Donating appreciated securities has become one of the most popular ways for donors to establish their fund. It is simple, fast and can be highly cost effective. If you have marketable securities that have appreciated in value, you can donate them to the Community Foundation of Mississauga and your capital gains are tax-exempt.

Marketable securities include stocks, bonds, bills, warrants, and futures traded on approved stock exchanges in Canada and certain other counĀ­tries. They also include mutual funds.

Donating Securities

If you are interested in donating securities, please remember NOT to sell the securities but to use the Direction to Transfer form to transfer the ownership to the Foundation. If you have any questions, you can always give us a call.

Direction to Transfer

 

Example

Donor wishes to make a gift of $10,000.00
Fair market value of stock $10,000.00
Cost base of stock $2,000.00

 

Option 1 - Sell stock and make $10,000 gift from cash proceeds

Option 2 - Gift stock to charity

  Option 1 Option 2
Sale/Gift of Stock $ 10,000.00 $ 10,000.00
Capital gain $8,000.00 $8,000.00
Taxable gain (50% x $8,000) $4,000.00 $0.00
Gift tax credit (45% * 10,000) $4,500.00 $4,500.00
Tax on gain (45% * 4,000) ($1,800.00)  
     
Cost of Gift $7,300.00 $5,500.00

 

For illustration purposes a combined tax rate of 45% was used (2009 Tax Tables). Please note that combined tax rates vary across the provinces.

Note to reader: The purpose of this example is to provide general information, not to render legal advice. In addition any changes in the tax structure may affect the examples listed in this information. You should consult with your lawyer or other professional advisor about the applicability of this information to your situation.

About Us

The Community Foundation of Mississauga serves the people and neighbourhoods of Mississauga from Port Credit in the south to Meadowvale in the north. Working with our donors and the broader community, we invest in building strong and resilient places to live, work and play.

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Contact Us

Community Foundation of Mississauga
1100 Central Parkway West, Unit 15, Lower Level
Mississauga, Ontario L5C 4E5
Phone: 905-897-8880 Fax: 905-897-7509
Charitable BN: 892395112 RR0001

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