Supporting your community doesn’t have to be taxing!
Securities are one of the most tax-efficient ways to support the causes you are passionate about.
Gifting securities like stocks, bonds, or mutual funds to The Winnipeg Foundation can be as easy as gifting cash, and can reduce your bill come tax time.
When you donate publicly listed securities directly to The Winnipeg Foundation, you:
- Receive an immediate tax receipt for the fair market value of your shares.
- Pay no capital gains tax on the sale of your shares.
The Winnipeg Foundation pays zero tax on the sale of donated shares, so you can be sure the cause(s) you care about receive the full support of your donation. Your receipt is based on the market value price of the shares on the date of transfer.
Exploring tax savings
Make the most of your generosity!
Giftabulator® allows you to try different giving scenarios providing you with the opportunity to tailor your giving to your situation. It will also provide resources you can share with your financial advisor when you are discussing your giving options.
Gifts of publicly listed shares scenario
Here’s an example of how making a gift through The Winnipeg Foundation can benefit you.
If you purchase shares for $2,000 and those shares have now appreciated to a market value of $10,000, you have a capital gain of $8,000.
If you donate the shares directly to The Winnipeg Foundation, you pay no capitals gains tax. Additionally, you receive a full tax benefit from the donation of $2,500 (assuming 25% tax credit). Therefore, your overall tax savings are $2,500.
If you instead sell those shares, you must pay capital gains tax on half (50%) the appreciated value of the shares sold ($4,000). Therefore, your tax liability is $2,000. When you donate the proceeds from the sale ($10,000), your tax benefit is $2,500 (assuming 25% tax credit), leaving you with overall tax savings of $500.
Donating the shares directly creates an additional tax benefit of $2,000.
*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.
What is a publicly traded 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.
Please complete our securities transfer form with your broker and ensure The Foundation receives a copy.
- Securities transfer form [PDF]
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 email communitygenerosity@nullwpgfdn.org.