{"id":54304,"date":"2021-12-10T15:18:14","date_gmt":"2021-12-10T20:18:14","guid":{"rendered":"https:\/\/www.canadahelps.org\/?p=54304"},"modified":"2025-06-11T14:40:20","modified_gmt":"2025-06-11T18:40:20","slug":"everything-charities-need-to-know-about-gifts-of-securities1","status":"publish","type":"post","link":"https:\/\/www.canadahelps.org\/en\/charity-life\/everything-charities-need-to-know-about-gifts-of-securities1\/","title":{"rendered":"Everything Charities Need to Know About Gifts of Securities"},"content":{"rendered":"

Gifts of securities are a great way for donors to support your charity. A gift of securities is when someone donates stocks, bonds, or other investments to your charity instead of giving cash. This can be a smart and savvy financial move for donors because it reduces their capital gains tax liability and may also reduce their income taxes.<\/p>\n

When you receive gifts of securities, they’re automatically converted into cash that can be used immediately by your organization. It might seem a bit complicated at first, but we’ll break it all down for you.<\/p>\n

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What Are Gifts of Securities?<\/strong><\/h2>\n

Gifts of securities are donations of stocks, bonds, or other investments to a registered charity. These gifts are increasingly popular because they offer several benefits for both the donor and the charity.<\/p>\n

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How Do Gifts of Securities Benefit Donors?<\/h2>\n

For Canadian charitable donors, giving gifts of securities can reduce taxable income and capital gains, while charities can receive immediate cash from the donation.<\/p>\n

Here are two examples:<\/p>\n

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  1. A donor owns a stock that is worth $1,000 but has only paid $500 for it. If the donor sells the stock, they will have to pay taxes on the $500 of capital gains. However, if the donor donates the stock to a charity, they can avoid paying those taxes.<\/li>\n
  2. A donor has a large number of stocks that have increased in value over the years. If they were to sell all of these stocks, they would have to pay a large amount of capital gains taxes. However, if they donate the stocks to a charity, they can avoid those taxes and also receive a charitable tax deduction.<\/li>\n<\/ol>\n

    In each case, the donor would be better off donating the securities instead of selling them.<\/strong><\/p>\n

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    How Do Gifts of Securities Benefit Charities?<\/strong><\/h2>\n

    Gifts of securities are important for charities because they provide a reliable and immediate source of cash. This is especially important for smaller charities that may not have the fundraising capabilities or donor base to support large donations.<\/p>\n

    When a donor gives a charity stocks or bonds, they can immediately sell them and receive cash for the donation.<\/p>\n

    This immediate infusion of cash can be used for many purposes, such as covering the costs of running a program, hiring new staff or expanding services.<\/p>\n

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