Donating Securities for a Greater Impact 

If you bought shares for $1,000, and they went to $10,000, you would make a $9,000 capital gain.

Selling those shares incurs capital gains tax. However, donating those shares to Virtue TV or another charity avoids being required to pay the tax.

This type of gift results in a greater impact for the charity and tax benefits for you. Donating securities enables a larger contribution than selling the securities and donating the proceeds.

Private corporations obtain tax deductions for the fair market value of securities and incur no capital gains tax on the donation. Private corporations may allocate the tax-exempt segment of the capital gain to the corporation's Capital Dividend Account, enabling distribution to shareholders as a tax-free dividend.

Canadians donate securities inside of RRSPs or RRIFs as part of their estate planning. Money withdrawn from an RRSP or RRIF is considered income, which is taxed at the marginal rate. Donating securities from an RRSP or RRIF reduces taxable income. Leaving RRSP or RRIF portfolios to a charity removes the tax hit to the estate when the second spouse passes away. Securities left inside these accounts are sold, and the proceeds are taxed as income. You can claim eligible amounts of donations, up to a limit of 75% of your net income. Up to 100% of a taxpayer’s net income can be claimed as donations in the year of death and the preceding year.

Your contributions to Virtue TV advance conscious leadership, a crucial element of human prosperity and longevity.