Donate
Securities and
Mutual Funds
Did you know that you can give more to your favourite Canadian charities by donating stocks, bonds or mutual funds? It’s the most tax-efficient way to give.
Why Donate Securities
Give more, get more back when you donate your securities, including stocks, bonds and mutual funds.
Reduce Capital Gains Taxes
In most cases, donating appreciated securities means you pay no tax on the capital gains. Plus, you can choose to save your charitable tax credits for future tax returns within 5 years of the transaction.
Instant Tax Receipts
Receive a charitable tax receipt for the market value on the date the security is received by our broker.
Choose Your Charities
Donate to over 28,000 Canadian charities, and even split your donation across multiple charities in one transaction!
Make a Bigger Impact
When You Donate
Securities Directly
By donating securities, including stocks, bonds and mutual funds, directly to a charity as opposed to selling them and donating the proceeds, the capital gains tax can be eliminated. This means more money for the charity and a greater charitable tax credit for you.
| Sell securities for cash. Donate after-tax proceeds. | Donate securities directly using CanadaHelps | |
|---|---|---|
| Original Cost of Securities | $1,000.00 | $1,000.00 |
| Current Market Value | $5,000.00 | $5,000.00 |
| Capital Gain | $4,000.00 | $4,000.00 |
| Tax on Capital Gains | $920.001 | $0.00 |
| Donation Amount After-Tax | $4080.002,3 | $5,000.003 |
| Your Charitable Tax Credit | $1,876.001 | $2,300.001 |
| Your charity gets $920 more! |
Your charitiable tax credit is $424 more! |
Hide footnotesFootnotes
- This assumes a 46% marginal tax rate. For calculating capital gains tax, this rate is applied to 50% of the capital gain. Note: As of June 25, 2024, the capital gains inclusion rate for individuals increased from one half (50%) to two thirds (66.67%) on the portion of capital gains realized in the year that exceed $250,000. The Alternative Minimum Tax (AMT) is a parallel tax calculation that allows fewer deductions, exemptions, and tax credits than under ordinary income tax rules. The taxpayer pays the AMT or regular tax, whichever is the higher, depending on their individual income and tax profile.
- $4,080.00 represents the full value of $5,000.00 minus estimated tax of $920.00.
- 3% fee applies to donations less than $10,000; 2.5% fee applies to donations between $10,000-$49,999; 2.25% fee applies to donations between $50,000-$99,999; 2% fee applies to donations $100,000-$249,999; flat fee of $5,000 applies to donations between $250,000-$499,999; fee of $7,500 applies to donations between $500,000-$999,999; fee of $10,000 applies to donations between $1,000,000-$1,500,000; for donations over $1.5 million, contact us.
- This material is intended to provide general information and should not be construed as financial or taxation advice without first consulting with your legal and/or financial advisor.
It’s Simple and Easy. Get Started Today.
Complete our online securities donation form.
You will receive an email confirming all details of your pledge.
Complete the provided Letter of Direction.
Send it to your financial advisor or investment firm. This authorizes the transfer of shares to CanadaHelps.
Charities receive their funds, you receive your tax receipt.
Once shares are sold, we’ll send you a confirmation email with your charitable tax receipt and disburse the proceeds to your chosen charities.
Tips and Tricks to Ensure Your Gift of Securities is Transferred Without Delay:
- Include multiple charities in one pledge for quicker processing: our online form allows you to choose how the donation of your securities is divided among charities.
- Don’t forget: include the Pledge ID from your confirmation email on your Letter of Direction and remember to sign it.
- If you are not using a broker, additional forms may be required by your bank! Please contact your bank — find your bank’s contact details here.
Frequently Asked Questions
What are securities?
The term “securities” in this context refers to investments such as stocks, bonds, and mutual funds that are publicly traded.
When donating a “gift of securities”, instead of selling the securities and donating the cash, the donor transfers ownership of the securities directly to CanadaHelps. The proceeds of the sale then go to the charity. This removes the capital gains tax that the original owner would have to pay, thus optimizing the donation to the charity.
Is there a minimum value to donate securities?
Yes, donations of securities or mutual funds do have minimum value requirements. If your security or mutual fund is in the form of a physical certificate, the minimum value is $2,000, as it needs to be converted to a digital format first.
For most other securities and mutual funds that are already in digital format, the minimum donation value is $200.
Can I donate without a broker/advisor?
When donating securities through a self-directed account without the assistance of an advisor or broker, please note that additional forms may be required, which can vary by institution. After submitting your online pledge through CanadaHelps, please download and sign the pre-filled Letter of Direction (LOD) you will need to initiate the funds transfer with your bank. Find the specific instructions to contact your investment platform here.
Why do I need to create a pledge first online through CanadaHelps?
To process your securities donation through CanadaHelps, we need to ensure traceability and an online pledge. The information you enter online helps us in several ways:
- It allows us to reference your donation with a unique pledge ID.
- We use this information to issue your tax receipt.
- It helps us keep your donor status updated.
Additionally, our broker uses the information you provide to match it with what your advisor submits, making the share sale process seamless.
What is the alternative minimum tax, and does it apply to me?
As of June 25, 2024, the capital gains inclusion rate for individuals increased from one half (50%) to two thirds (66.67%) on the portion of capital gains realized in the year that exceed $250,000. The Alternative Minimum Tax (AMT) is a parallel tax calculation that allows fewer deductions, exemptions, and tax credits than under ordinary income tax rules. The taxpayer pays the AMT or regular tax, whichever is the higher, depending on their individual income and tax profile.
Have Questions About Donating Securities or Mutual Funds?
Browse our
Frequently Asked Questions
or Email us at
securities@canadahelps.org