Supporting your community doesn’t have to be taxing!
Every day, The Winnipeg Foundation works with donors and their financial advisors to make tax efficient gifts that provide meaningful support.
Is there a Cause or charity that is near and dear to your heart? Donating gifts of securities (including stocks, mutual funds and bonds) is a great way to support your community and reduce your tax bill. When you transfer securities to The Winnipeg Foundation, you receive an immediate tax receipt and eliminate capital gains tax.
Please speak with your financial or tax advisor to see if this is the best option for you.
We would be pleased to work with you and your advisors to ensure smooth transfer of your publicly listed securities and prompt delivery of your charitable tax receipt.
Please complete our securities transfer form with your broker and ensure The Foundation receives a copy.
- Securities transfer form [PDF]
How it works
Listed securities are not subject to capital gains tax when they are donated directly to a registered charity (including The Foundation) without being sold first.
The donor receives a tax receipt for the fair market value of the security when the security is received by The Foundation. The registered charity pays no tax on the sale of the securities. Your receipt value is based on the closing share price on the date of transfer.
What is a listed security?
- Shares, debt obligations and rights (for example, stock options) 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 segregated fund trusts
- Prescribed debt obligations (for example, government savings bonds).
The Winnipeg Foundation can also work with you on a strategy on gifts of private shares.
How can you give listed securities to The Foundation?
- You may transfer the securities from your brokerage account to The Winnipeg Foundation’s account. Please complete our Securities Transfer Form [PDF] with your broker and ensure The Foundation receives a copy.
- You may deliver endorsed certificates to The Winnipeg Foundation. In this case, the gift is complete the day the certificate is delivered, so that the amount on the receipt is based on the closing price on the date received in The Winnipeg Foundation brokerage account.
Benefits to you as a donor
The following chart illustrates the tax savings that donors realize when making a gift of securities rather than selling them first or donating the cash equivalent:
|Sell Shares & Donate Cash||Donate Shares Directly|
|Fair Market Value||$10,000||$10,000|
|Taxable Gain||$4,000 (50%)||$0 (0%)|
|Tax credit (assuming 25%)||$2,500||$2,500|
|Tax on gain (at 50%)||$2,000||$0|
*This example is for illustration purposes only. It uses approximate amounts only, and is based fictional tax rates. Actual tax rates and actual tax credit will vary depending on your taxable income and your province of residence. Tax rates are subject to change. A higher marginal tax rate applies to income exceeding $200,000 and the federal tax credit has been increased to fully offset federal tax on the extent gifts are made from income over $200,000.
Please consult with your professional advisors and your family when planning your gift to ensure this is the best option for you. The purpose of this web page is to provide general information, not to render legal or financial advice.
For more information about making a charitable gift of securities, please contact us at 204-944-9474 (toll-free 1-877-974-3631) or by email.